Part II Community-Based Forest Management Program - ppmrn

Management Services 

Report No. 2005-07 

Sectoral Performance Audit 

Community-Based Forest 

Management Program 

Department of Environment 

and Natural Resources 

OVERALL REPORT

Republic of the Philippines 

Commission on Audit 

MANAGEMENT SERVICES 

Commonwealth Avenue, Quezon City, Philippines 

Telephone Nos.: 931-9235, 931-7455 

================================================= 

January 26, 2007 

GEN. ANGELO T. REYES 

Secretary 

Department of Environment and Natural Resources 

Visayas Ave., Quezon City 

Sir: 

We are pleased to transmit the report on the sectoral performance audit 

of the Community-Based Forest Management (CBFM) Program. The audit was 

conducted by a team from the Management Services, this Commission, 

pursuant to MS/TS Office Order No. 2005-037 and 2005-037A dated July 6, 

2005 and October 17, 2005, respectively. 

The results of the audit were forwarded to that Office, the Forest 

Management Bureau and concerned Regional/Provincial/Community 

Environment and Natural Resources Offices for comments and justifications. 

All comments received by this Office were incorporated in the report, where 

appropriate. 

The audit was conducted to assess whether the implementation of 

CBFM activities in selected CBFM projects in the provinces of Nueva Vizcaya, 

Palawan, Leyte and Bukidnon have been effectively undertaken in uplifting the 

socio-economic condition of the community and restoring forest cover on 

sustainable basis, and the adequacy of safekeeping measures on confiscated 

forest products and conveyances. 

We look forward to the proper implementation of the 

recommendations and we would appreciate being informed on the actions taken 

thereon within one month from receipt hereof. 

We acknowledge the cooperation and assistance extended to the team 

during the audit. 

Very truly yours, 

By Authority of the Chairman:

Contents 

Page 

Part I Executive Summary 1 

Introduction 2 

Audit Objective 3 

Audit Scope and Methodology 3 

Audit Conclusion 4 

Management’s Reaction 6 

Team’s Rejoinder 7 

Part II 

Community-Based Forest Management 

Program (CBFMP) 8 


Program Objectives/Goals 10 

Program Stakeholders 10 

Program Scope 11 

Implementing Agencies 12 

Governing Laws, Rules and 

Regulations 13 

Funding 15 

Process Flow/Activities 16 

Contracts 18 

Evaluation Process 18 

Processing of Payments 20 

The CBFM Projects 21 

Part III 

Provincial Environment and Natural 

Resources Office (PENRO) 

Provinces of Nueva Vizcaya, 

Palawan, Leyte and Bukidnon 22 


Organizational Structure 25 

Funding 27 

CBFMP Accomplishments 28 

Profile of Projects Audited 28

Contents 

Page 

Part IV Audit Observations 35 

Chapter 1 

Effective Community 

Organizing 36 


Observations 37 

Chapter 2 

Sound Implementation and 

Maintenance Strategies/ 

Activities 50 



Chapter 3 

Adequate Monitoring 

Activities 82 



Chapter 4 

Appropriate Safekeeping 

Procedures 97 


Observation 98 

Part IV Recommendations 108

Part I 

Executive Summary 

1

EXECUTIVE SUMMARY 

INTRODUCTION 

Forest Management, one of the four major programs of the Department of 

Environment and Natural Resources (DENR), deals with the promotion of 

effective protection; development, occupancy, management and conservation of 

forest lands and watersheds, including grazing and mangrove areas; 

reforestation and rehabilitation of critically denuded/degraded forest 

reservations; improvement of water resource use and development of ancestral 

lands, wilderness area and other natural reserves; development of forest 

plantations, including rattan, bamboo and other valuable non-timber forest 

resources; rationalization of wood-based industries; regulation of the utilization 

and exploitation of forest resources including wildlife, to ensure continued 

supply of forest goods and services. 

Forest Management has six (6) sub-programs namely: 

• Community-Based Forestry Program; 

• Plantation Establishment and Maintenance and Protection; 

• Forest Management Service; 

• Forest Protection; 

• Soil Conservation and Watershed Management; and 

• Forestland Sub-Classification. 

In the late 1970’s and early 1980’s, the government, through the DENR, was 

awarding three-year reforestation contracts to families, communities, 

corporations or local government units to implement forest development and 

rehabilitations with financial gains as the only motivating factor accorded to the 

proponents. However, the influx of people to the uplands due to lack of 

economic opportunities in the lowlands as well as continued denudation of 

forestlands compelled the government to launch new approaches and programs 

to address forest denudation. 

The government adopted the community-based approach on the premise that 

sustainability of managing forest resources necessitates building around 

communities living within the forestlands and its adjacent barangays. This 

approach recognized the capabilities of the communities as partners in upland 

development. The following programs were launched employing the 

community-based approach: 

• Integrated Social Forestry Program (ISFP); 

• Community Forestry Program (CFP); 

• Forest Land Management Program (FLMP); and 

• Coastal Environment Program (CEP). 

2


On July 19, 1995, anchoring on the concept of “people first and sustainable 

forestry will follow”, Executive Order (EO) No. 263 was issued prescribing 

community-based forest management (CBFM) as the national strategy. CBFM 

aims to promote the socio-economic upliftment of forest communities and 

achieve sustainable development/management of forest resources. 

Pursuant to EO 263, DENR issued Administrative Order No. 96-29 on October 

10, 1996 setting forth the rules and regulations governing its implementation. 

Under Section 5 thereof, the CBFM Program (CBFMP) shall apply to all areas 

classified as forestlands including allowable zones within the protected areas. It 

also integrates and unifies all people-oriented forestry programs of the 

government including the ISFP, FLMP, CFP and CEP, among others, and 

recognizes ancestral domain claims. 

AUDIT OBJECTIVE 

The audit was conducted to assess whether the implementation of CBFM 

activities in the selected CBFM projects in the provinces of Nueva Vizcaya, 

Palawan, Leyte and Bukidnon have been effectively undertaken to contribute in 

uplifting the socio-economic condition of the community and restoring forest 

cover on sustainable basis, and the adequacy of safekeeping measures on 

confiscated forest products and conveyances. 

AUDIT SCOPE AND METHODOLOGY 

The audit covered an assessment of the CBFM activities in the implementation 

of selected projects and the manner of safekeeping confiscated products using 

the following evaluation criteria: 

• Effective community organizing; 

• Sound implementation and maintenance strategies/activities; 

• Adequate monitoring activities; and 

• Appropriate safekeeping procedures. 

The projects evaluated follow: 

Location 

Project 

Nueva Vizcaya • Dumayop Watershed Sub-Project (DWSP) 

Palawan • Sta. Lourdes, Tagburos, Bacungan and Kamuning 

3


Location 

Project 

Mangrove Rehabilitation Sub-Project (STAGBAK 

MRSP) 

• Brgy. San Isidro ISF Multi-Purpose Cooperative 

(BSIISFMPC) 

Leyte • Palompon Mangrove Rehabilitation Sub-Project (PMRSP) 

• Capoocan Multi-Purpose Cooperative 

Bukidnon • Pulangi Watershed Rehabilitation Sub-project (PWRS) 

• Cabayugan Laligan Valencia Upland Farmers Association 

(CALVUPA) 

To meet the audit objective, the team applied the following audit techniques, 

among others: 

• Reviewed pertinent rules and regulations on forest managements; project 

documents (e.g. tenurial instrument, contracts); related monitoring reports such 

as Appraisal Report and Accomplishment Reports; support services extended 

by various sectors to the project and its beneficiaries; and safekeeping 

measures on confiscated products; 

• Interviewed and administered survey questionnaires to officers and employees 

of DENR, Local Government Units (LGUs), Other Government Agencies 

(OGAs) and People’s Organizations (POs); 

• Inspected project sites and depositories of confiscated forest products and 

conveyances; 

• Reviewed, analyzed and assessed data gathered. 

The audit was conducted from September 1, 2005 to March 17, 2006 pursuant 

to MS/TS Office Order No. 2005-37. 

AUDIT CONCLUSION 

The audit concluded that the implementation of CBFM activities in selected 

projects in the provinces of Nueva Vizcaya, Palawan, Leyte and Bukidnon was 

not effectively undertaken and that confiscated products and conveyances were 

not immediately disposed and not properly protected. 

The lapses in the implementation of CBFM activities adversely affected the 

attainment of CBFMP goals of uplifting the socio economic condition of the 

communities and restoring forest cover on sustainable basis. 

These are manifested in the failure to transform the POs into viable entities 

capable of managing the forest resources on a long term basis and lapses in the 

execution and/or inadequacies of policies, procedures and regulations as 

exemplified in the following cases: 

4


• POs in all seven projects covered were not able to uplift their socio 

economic condition and manage forest resources as illustrated below: 

‣ Except in the case of PMRSP, majority of livelihood projects identified 

and implemented during Community Organizing (CO) stage were either 

suspended or terminated due to the absence of market for the products, 

unavailability or high cost of needed inputs and unsuitable climate. The 

failure of livelihood projects can be attributed to inadequate trainings and 

feasibility studies. 

‣ About 47% of household population within PWRS area were non PO 

members and yet, the entire area was awarded to the PO. This hinders the 

development of the area particularly those occupied by non-PO members. 

‣ Protection activities were not effectively carried out despite requirements 

under the CBFMA. Thus, survival rates attained during CSD 

implementation were not sustained and forest fires were not prevented or 

contained destroying at least 50 and 423 hectares of the established 

plantations within the PWRS and DWSP coverage, respectively. 

• Policies, procedures and regulations were not effectively implemented 

in the following instances: 

‣ Project appraisals of DWSP, STAGBAK MRSP and PWRSP were not 

thoroughly undertaken. In the case of DWSP, project area contained 

mineral deposit which resulted in abnormal/stunted growth of planted 

trees within reforestation area and subsequent destruction of affected 

portion due to mining activities. On the other hand, at STAGBAK MRSP 

and PWRSP, project areas included areas unsuitable for reforestation and 

with existing land claims. This adversely affected the smooth 

implementation of CSD activities and the survival rates of the established 

plantation which were found to be as low as 35.75% and 61.88%, 

respectively, as of November 2005 despite massive replanting activities. 

‣ The land use plan defined in the Feasibility Study of PWRS was not 

strictly observed resulting in increased estimated soil erosion from 

303,455 to 390,898.39 tons/year. A portion of the area intended for 

Assisted Natural Regeneration (ANR) with estimated minimal soil erosion 

was converted into agro-silvipastural plantation with estimated higher 

average erosion. Moreover, inappropriate upland cultivation which 

promotes soil erosion is widely practiced within the CBFMA area. 

‣ The PO in DWSP was still awarded maintenance and protection contracts 

during CBFMA period. Under the CBFMA, POs are obliged to maintain 

the CBFMA area at their own expense. 

• Inadequate coordination with other government agencies resulted in the 

granting of mining permit within the DWSP areas to another PO and 

improper maintenance of infrastructure projects turned-over to LGUs; 

5


• Absence of policies on the standard area to be managed by the PO 

considering the number of participating members and its level of 

development resulted in the awarding of the entire 3,780 hectares area 

within DWSP to only one PO which was later found to be physically 

and financially incapable of managing such huge area. 

These lapses contributed to the failure of the POs to sustain the survival rates 

attained during CSD implementation. As of inspection date, the survival rates 

of these projects were estimated to range only from 15 to 62%, a great reduction 

from the reported survival rates of 35.75 to 82.77% during CSD 

implementation. 

The monitoring mechanism in place and databases maintained were not also 

adequate to assess the extent of the PO’s implementation of their Community 

Resource Management Framework (CRMF) and Annual Work Plan (AWP). In 

the case of PWRS, the PO’s accomplishments during CSD implementation 

could not be relied upon as reported accomplishments reflect double entries and 

differ from one report to another. 

With regard to safekeeping measures, disposal of confiscated/forfeited 

logs/lumber and conveyances were not facilitated resulting in accumulation in 

quantities which could no longer be protected by DENR offices. These products 

were then deposited/impounded in open spaces exposed to the deteriorating 

elements. 

As the DENR is implementing CBFM nationwide, the team recommended 

measures under Part V of the report to address these concerns. 

MANAGEMENT’S REACTION 

The team forwarded the audit highlights to the concerned Regional Directors, 

PENROs, CENROs and the DENR Secretary on various dates, for comments. 

Upon request, an exit conference with the members of the Management 

Committee of the Forest Management Bureau (FMB) was conducted on 

October 31, 2006. 

Generally, the concerned DENR offices recognized the existence of the 

problems raised in the report with some reservations. In particular, the FMB 

claimed that Community Organizing is a continuing process of capability 

enhancement and strengthening organizations and that failure to properly 

develop the PO to manage the forest on a long term basis can be attributed to 

the very limited CBFM staff and resources provided by the government. They 

6


also forwarded explanations and justifications on some issues which were 

incorporated in the report, where appropriate. 

TEAM’S REJOINDER 

While community organizing is considered to be a continuing process, training 

and enhancement activities, apparently, end at the termination of Community 

Organizing contract. Thus, the capabilities of the POs were not enhanced. 

On the other hand, the government’s limitation in terms of providing adequate 

staff and resources to oversee the implementation of the program and provide 

the needed assistance should have been considered and addressed before the 

implementation of the program. As it is, without adequate monitoring and 

assistance to POs, the objective of the program of ensuring sustainable forest 

development could not be attained. Implementing programs and projects that 

could hardly be monitored and attended to would result in wastage of 

government resources. It also appears that lapses in the implementation 

emanates from inadequate conduct of feasibility studies. 

7

Part II 

Community-Based Forest Management 

Program (CBFMP) 

8

COMMUNITY-BASED FOREST MANAGEMENT PROGRAM 

INTRODUCTION 

Sustainable forest management (SFM) is the ultimate objective of the forestry 

sector. It aims for a continuous production of the desired forest products and 

services without reducing its inherent values and future productivity and 

producing undesirable effects on the physical and social environment. 

Sustainable forest management is guided by the following principles: 

pp 

ort 

Institutional Su 

for SFM 

Pro per Valuation 

and Pricing of Forestry 

Resources and 

Financing SFM 

Delineation, Classification 

and Demarcation of 

State Forestlands 

SUSTAINABLE 

FOREST 

MANAGEMENT 

Incentives for Enhancing 

Private Investments, 

Economic Contribution and 

Global Competitiveness of 

Forest-Based Industries 

Ho listic , Sustainable 

a n d Integrated 

D evelopment of 

F orestry Resources 

sed 

ion 

Community-Ba 

Forest Conservat 

and Development 

Under the Community-Based Forest Conservation and Development principle, 

the CBFM is adopted as the national strategy pursuant to Executive Order No. 

263, series of 1995. The CBFM is a collaborative undertaking of the national 

government, LGUs, local inhabitants, community organizations, civil society 

organizations (CSOs), and private business entities. 

It is applicable to all areas classified as forest lands including allowable zones 

within protected areas. It also integrates and unifies all people-oriented forestry 

programs of the government including Integrated Social Forestry Program 

(ISFP), Upland Development Program (UDP), Forest Land Management 

Program (FLMP), Community Forestry Program (CFP), Low Income Upland 

Communities Project (LIUCP), Regional Resource Management Project 

9


(RRMP), Integrated Rainforest Management Project (IRMP), Forestry Sector 

Project (FSP), Coastal Environment Program (CEP); and ancestral domains. 

Under this Program, the DENR entered into CBFM Agreement (CBFMA) with 

Peoples Organizations (POs) for a period of 25 years. This document provides 

tenurial security and incentive to develop, utilize and manage specific portions 

of forest lands. 

PROGRAM OBJECTIVES/GOALS 

The basic principles underlying CBFM Program (CBFMP) as defined under 

Section 2 of DENR CBFM Strategic Action Plan are: 

• Social equity, recognition of indigenous people, and gender parity; 

• Livelihood and local management of natural resources; 

• Community participation, sustainable forest management and biodiversity 

conservation; 

• Creation of the enabling environment; and 

• Partnership. 

These principles are embodied in the Community Resource Management 

Framework (CRMF) of every CBFM project. The CRMF expresses the 

communities’ aspirations, local and indigenous knowledge, and serves as a 

guide in the access, development, use and protection of resources in areas being 

managed or to be managed by the communities. 

PROGRAM STAKEHOLDERS 

The local communities composed of either cultural/indigenous peoples or noncultural 

community represented by their organizations referred to as POs are the 

principal participants in the CBFMP. 

Indigenous Cultural Communities (ICCs)/Indigenous Peoples (IPs), whose 

claims to ancestral domains/lands have been recognized through Certificates of 

Ancestral Domain Claims (CADCs) or Certificates of Ancestral Land Claims 

(CALCs), or whose domains are recognized by themselves and neighboring 

communities, may, at their option, participate in the CBFMP through the 

preparation and implementation of Ancestral Domain Management Plans 

(ADMPs). An ADMP shall be considered the equivalent of a CRMF. 

10


CBFMP offers the following incentives to the POs: 

• To occupy, possess, utilize and develop forest lands and its resources located 

within the designated CBFM area and claim ownership of introduced 

improvements. ICCs/IPs shall be deemed not to have waived their rights to 

ancestral lands and domains, and the right to lay claim on adjacent areas which 

may, after more careful and thorough investigation, be proved to be, in fact, 

part of their ancestral domain; 

• To allocate to members and enforce rights to use and sustainably manage forest 

lands resources within the CBFM area; 

• To be exempt from paying rent for use of the CBFM areas; 

• To be properly informed of and be consulted on all government projects to be 

implemented in the area. A PO’s consent shall also be secured by the DENR 

prior to the granting and/or renewal of contracts, leases and permits for the 

extraction and utilization of natural resources within the area; provided, that an 

equitable sharing agreement shall be reached with the PO prior to any grant or 

renewal to an individual or legal entity that is not from or based in the affected 

community; 

• To be given preferential access by the DENR to all available assistance in the 

development and implementation of the CRMF, Resource Use Plan (RUP), and 

Annual Work Plan (AWP); 

• To receive all income and proceeds from the sustainable utilization of forest 

resources within the CBFM area, subject to the provisions of the National 

Integrated Protected Areas System (NIPAS) law; and 

• To enter into agreements or contracts with private or government entities for 

the development of the whole or portion of the CBFM area; provided, that 

public bidding and transparent contracting procedures are followed; provided 

further, that development is consistent with the CRMF of the CBFM area. 

PROGRAM SCOPE 

CBFM projects may be implemented in both uplands and coastal lands of the 

public domain. 

upland 

coastal land 

11


The following areas are, however, exempted from the CBFM project: 

• Areas covered by existing Timber License Agreements (TLAs), Pasture Lease 

Agreement (PLA), IFMA and other forest land contracts, leases, permits or agreements, 

except in the following cases: 

‣ The lessee, agreement holder executes a waiver in favor of the CBFM Agreement 

(CBFMA), provided, that when any pre-existing rights expire within three years from 

the issuance of a CBFMA, no waiver shall be required; or 

‣ A permit is issued only for the collection or harvesting of minor forest products, in 

which case no waiver from the permittee shall be required. Upon termination of any 

pre-existing permit for non-timber forest products, the permit shall not be renewed and 

any new permit shall be given to the CBFMA holder. 

• Protected areas except multiple use zones, buffer zones and other areas where 

utilization activities may be allowed pursuant to the provisions of RA 7586 and its 

implementing rules and regulations; 

• Forestlands which have been assigned by law under the administration and control of 

other government agencies, except upon written consent of the concerned government 

agency; 

• Certified ancestral lands and domains, except where the ICCs/IPs opt to participate in 

CBFMP; and 

• Other areas occupied by ICCs that are known to be ancestral domain but are not yet 

covered by CADC or CALC, unless the ICCs/IPs opt to participate in CBFMP. 

IMPLEMENTING AGENCIES 

D 

E 

The DENR, in coordination with the LGUs and OGAs, shall collaborate with 

Non-Government Organizations (NGOs) and other private entities in developing 

the enabling environment to support and strengthen local communities in 

managing forestlands and coastal resources on a sustainable basis. It shall provide 

security of tenure and technical assistance to the community. 

The specific functions and responsibilities of various DENR offices follow: 

FMB 

As the National Coordinating Office of CBFMP, it shall be responsible for drafting 

policies, monitoring implementation, liaising support and maintaining information 

system on CBFMP. 

N 

R 

Reg. 

Office 

PENRO 

It shall be responsible for the effective implementation of CBFMP in the region. It 

shall submit periodic reports on program implementation, monitoring and 

evaluation to the Secretary. 

It shall be responsible for the effective implementation of CBFMP in the province, 

including submission of periodic reports and maintenance of data base for all 

CBFM projects in the province. 

CENRO 

It shall be directly responsible for the implementation of CBFMP within its 

jurisdiction, in coordination with LGUs, OGAs, NGOs/private entities. It shall 

submit periodic reports of CBFMP implementation to PENRO for evaluation. 

12


C 

B 

F 

M 

S 

T 

E 

E 

R 

I 

N 

G 

C 

O 

M 

M 

I 

T 

T 

E 

E 

In accordance with Section 8 of EO 263, a CBFM Steering Committee chaired 

by the DENR Secretary is constituted to formulate and develop policy 

guidelines that will create incentives and conditions necessary to effectively 

implement CBFMP. The committee is composed of the Heads of the following 

Offices as Members: 

• Department of Agriculture 

• Department of Trade and Industry 

• Department of Agrarian Reform 

• Department of Finance 

• Department of Science and Technology 

• Department of Labor and Employment 

• Department of Interior and Local Government 

• Department of Budget and Management 

• Department of National Defense 

• Department of Justice 

• National Economic and Development Authority 

• Philippine Commission on Countrywide Development 

• Committee on Flagship Programs and Projects 

• Cooperative Development Authority 

• National Commission on Indigenous Peoples 

• Philippine Chamber of Commerce 

• Philippine Wood Products Association 

• NGO Coalition Group 

• Representatives of POs 

• Other public and private organizations. 

The Steering Committee shall perform the following roles and functions: 

• Provide overall guidance and policy direction to the CBFMP and, for this 

purpose, meet periodically to review and integrate, if necessary, all policies 

pertinent to the CBFMP, and resolve policy gaps and/or conflicts with other 

programs and projects in the Environmental and Natural Resources Sector; 

• Review and approve the CBFMP Comprehensive Action Plan; 

• Secure inter-agency support and participation in CBFMP; and 

• Identify and source funds for CBFMP. 

GOVERNING LAWS, RULES AND REGULATIONS 

Recent issuances governing the implementation of CBFMP follow: 

EOs 

263 

72 

Adopting Community-Based Forest Management (CBFM) as the national 

strategy to ensure the sustainable development of the country’s forestland 

resources and providing mechanisms for its implementation 

Preparation and implementation of Local Government Code of 1991 

13


RAs 

8371 

7586 

Recognizing, protecting and promoting the rights of ICCs/IPs and creating 

a National Commission on Indigenous Peoples 

Establishment and management of National Integrated Protected Areas 

System and defining its scope and coverage 

PDs 

705 The Revised Forestry Code of the Philippines 

2002-02 

Establishment and management of CBFM Program in protected areas 

2000-57 

Guidelines in the implementation and management of mangrove 

subprojects under the Forestry Sector Program (FSP) 

2000-29 

Harvesting and utilization of forest products within CBFM area 

2000-07 

Guidelines for Environmental Impact Assessment of forestry projects 

99-49 

Guidelines in the identification, development and implementation of 

livelihood activities and opportunities for qualified protected area occupants 

99-35 

Guidelines in the implementation of RUP in CBFMP 

DAOs 

99-11 

98-45 

Amending DAO 98 series of 1988 to include CBFMP under the coverage of 

the Program D of the Comprehensive Agrarian Reform 

Issuance and transfer of Certificate of stewardship within CBFM areas 

98-44 

Establishment and management of CBFM special account 

98-43 

Exempting CBFM projects from payment of Administrative fees 

98-42 

Production sharing with POs in the harvest of plantations owned by the 

government inside the CBFM areas 

96-30 

Integrating all CBFM strategy and People-Oriented Forestry Programs and 

Projects into DENR regular structure 

96-29 

Integrating all CBFM strategy and People-Oriented Forestry Programs and 

Projects into DENR regular structure 

14


DENR-DILG 

JMC 2003-01 

Strengthening and institutionalizing the DENR-DILG-LGU partnership on 

devolved and other Forest Management Functions 

DOF-DENR 

JMC 99-01 

Detailing the functions and responsibilities of partner agencies involved in 

the implementation of CBFM 

DENR- 

DILG JMC 

Prescribing the Procedures on Devolved and other Forest Management 

Functions 

MCs 

DENR MC 

99-17 

DENR MC 

2000-18 

DENR MC 

99-08 

Providing guidelines in the conduct of Monitoring and Evaluation of 

Forestry Sector Projects 

Providing guidelines and procedures in the processing of payments for 

Community Organizing (CO) and Comprehensive Site Development of 

Subprojects under the FSP 

Prescribing guideline for the preparation and evaluation of Phase Out Plan 

of the Assisting Organization for Forestry Sector Projects 

DENR MC 

99-04 

Prescribing extension of CO Contract under FSP Loan 

DENR MC 

98-10 

DENR MC 

98-08 

DENR MC 

97-01 

Implementing the Project Impact Monitoring and Evaluation System 

(PRIMES) as Monitoring and Evaluation Guidelines for CBFMP 

Prescribing guidelines on contracting inside CBFM areas 

Implementing guidelines on the conduct of CO under FSP 

FUNDING 

For CYs 2002 to 2004, CBFM program/projects were financed from regular 

budget and proceeds of foreign loans with total appropriation of P5,165.957 

million, broken down as follows: 

Program/Projects 2002 2003 2004 Total 

(In Millions) 

Foreign Assisted: 

FSP (JBIC PH 135) 

Peso Counterpart 

Loan Proceeds 

RP-German Community Forestry Proj. Peso 

Counterpart 

Water Resources Dev’t. Proj. 

(IBRD 4110) 

Peso Counterpart 

Loan Proceeds 

P116.107 

217.307 

7.000 

P88.328 

77.895 

.300 

P9.115 

P213.550 

295.202 

30.438 

46.562 

.500 21.958 

6.320 

52.896 

52.882 

Forest Management 1,531.104 1,437.563 1,575.460 4,544.127 

Total P1,948.518 P1,604.586 P1,612.853 P5,165.957 

7.300 

15


PROCESS FLOW/ACTIVITIES 

The CBFM work is divided into four stages: 

Stage 1 

Preparatory Stage 

• Building LGU-DENR partnership 

• Identification and prioritization of potential CBFM sites 

• Identification and delineation of ancestral land/domain claims 

Stage2 

Diagnostic and PO Formation/Strengthening Stage 

• Formation of CBFM core groups, deployment and community 

immersion of full-time, field based CBFM workers 

• Identification of community leaders 

• CBFM orientation and team building 

• Training needs assessment of core groups, CBFM workers, training 

for participatory rural appraisal 

• PRA, community and resources profiling 

• Seminars and consultations on the CBFM Agreement 

• Pre-membership training 

• Formulation and ratification of PO constitution and by-laws 

• Registration of PO 

• Preparation of CBFM application 

• Issuance of CBFMA 

Stage 3 

Planning Stage 

• PO sectoral planning 

• Consolidation of sectoral plans into CRMF and RUP 

• Affirmation of CRMF 

• In case of CADC, preparation of Ancestral Domain Management Plan 

Stage 4 

Implementation Stage 

• Setting-up of PO management systems and institutions 

• Linkaging and networking with other POs, corporate sector, GOs, NGOs, 

LGUs 

• Capability-building of POs on financial management, livelihood, etc. 

• Expansion of PO membership 

• Conduct of regular assessment, strategizing/tactic session 

• Research and Development 

• Implementation of Development Activities 

• Periodic assessment of PO capabilities 

• Phasing-out full time DENR-CBFM workers 

• Federation of CBFM PO 

16


CBFM IMPLEMENTATION FRAMEWORK 

IEC 

INFORMATION 

DISSEMINATION 

PERIMETER SURVEY 

REFLECTION-PLAN- 

ACTION CYCLE 

FOREST 

LAND-USE 

PLANNING 

COMPRE- 

HENSIVE 

FRAME- 

WORK 

PLAN 

POTEN- 

TIAL CBFM 

AREAS 

CBFM 

MGN'T 

UNITS 

PREPARATORY 

STAGE 

COMM- 

UNITY 

APPLICA- 

TION FOR 

CBFM 

SITE PRO- 

FILE 

• Community 

Mapping 

• Situation 

Analysis 

• Participatory 

rapid appraisal 

PO 

FORMATION/ 

STRENG- 

THENING & 

FORMALIZA- 

TION 

DIAGNOSTIC AND PO 

FORMATION STAGE 

CBFMA 

ISSUANCE 

VISION 

& 

MISSION 

SETTING 

CRMF 

PREPA- 

RATION 

• Orientation 

• Sectoral 

Planning 

• Consolidation of 

Sectoral Plans 

• Ratification 

• Public 

Consultation 

PLANNING 

STAGE 

5-YEAR 

WORKPLAN 

PREPA- 

RATION 

IMPLEMEN- 

TATION 

• Livelihood & 

enterprise 

dev't. 

• Forest area 

dev't & 

management 

• Organizational 

dev't & mag''t. 

• Etc. 

IMPLEMENTATION 

STAGE 

PARTNER- 

SHIP & 

ALLIANCE 

BLDG. 

AMONG 

STAKE- 

HOLDERS 

(DENR, 

LGU, OGAS, 

NGOS, etc. 

SUPPORT 

TO CBM 

IMPLEMEN- 

TATION 

COMMUNITY ORGANIZING 

STRENGTHENING CAPACITIES (PHASED TRAINING, COMPREHENSIVE AND HOLISTIC APPROACH 

IEC 

REGULAR CBFM UPDATES (I.E. POLICY BRIEFS) 

INTERAGENCY COOPERATION NETWORK 

MONITORING AND EVALUTAION DOCUMENTATION 

OF LESSONS LEARNT PROVISIONS OF TECHNICAL 

ASSISTANCE, AND SUPPORT SERVICES 

INSTITUTIONAL SUPPORT MECHANISMS 

ASSESSMENT OF THE ORGANIZATIONAL STABILITY 

MAJOR 

ACTIVITIES 

/ 

EXPECTED 

OUTPUTS 

• Analyzing CBFM 

stakeholders with the 

LGU 

• Shorrtcut to validating the 

CBFM areas 

• Understanding the 

community history and 

experience 

• Mobilizing the community 

to draw a community 

profile 

• Getting to know the 

community's way of life 

• Identifying major CBFM 

stakeholders at the 

community level 

• Determining when is 

individual time versus 

community time 

• Understanding circles of 

influence and interaction 

among community members 

• Helping the community 

assess their basic economic 

system 

• Finding out who uses and 

controls the community's 

natural material resources 

• Understanding deeper levels 

of causes and effects of 

community problems 

• Identifyng relevant 

community problems and 

brainstroming possible 

solutions 

• Facilitating the PO's 

formulation of vision and 

mission statement 

• Selecting appropriate 

features to design socioculturally 

suitable 

interventions 

• Guiding the PO's coomunity 

action planning process 

• Building PO members selfconfidence 

through selfreflection 

• Teaching the PO how to define 

support needed and mobilize 

resources 

• Guiding the PO to assess plans 

vs accomplishments and initiate 

adjustments 

• Assessing the project's gain in 

terms of improved resources 

access and control 

• Collecting participants insights 

from project interventions & 

recommenadtions 

• Defining the project's impact on 

community life and discussing 

recommendations 

USEFUL 

PRA 

TOOLS 

• Stakeholders analysis with 

LGU 

• Participatory community 

resource mapping 

• Trend analysis 

• Transect walk 

• Gender specific calendar 

• Stakeholders analysis with 

the community 

• Time use chart 

• Venn diagram 

• Livelihood analysis 

• Community resources 

access and control matrix 

• Problem analysis 

• Analysis of community 

problems and potential 

solutions 

• PO vision and mission 

statements 

• Intervention suitability and 

potential benefits analysis 

• PO community action plan 

• Fruits of success 

• Mobilizing internal & external 

support resources 

• Participatory monitoring 

• Monitoring & evaluation using 

gender analysis 

• Participatory feedback analysis 

• Participatory project impact 

analysis 

17


CONTRACTS 

There were 39 CBFM projects funded under JBIC Loan PH-135 from 1997 to 

June 2003. These projects were covered by 304 contracts with total contract 

cost of P1,831.185 million executed by the DENR and a number of NGOs, POs 

and private contractors: 

Project Component 

No. of 

Contracts 

Contractor 

Contract Amount 

(in Millions) 

Community Organizing 57 NGOs P130.862 

Comprehensive Site Development 81 POs 1,203.161 

Monitoring and Evaluation 117 NGOs 113.952 

Infrastructure 49 Private firms/NGOs 383.210 

Total 304 P1,831.185 

EVALUATION PROCESS 

Contractors for each component of CBFM projects are pre-qualified and 

performance evaluated based on the following criteria: 

Phase 

Criteria 

Prequalification 

Performance Evaluation 

C 

O 

The NGO/AO should be DENR 

accredited: 

• with proven track record in 

community organizing/ 

community development 

works in the Region; 

• with capability to implement 

community capacitation in 

technical, social, institutional 

and other aspects of subproject 

implementation; 

• with staff willing to go full 

time and immerse on the site; 

and 

• not blacklisted by DENR 

and/or any other government 

agencies, local and 

international funding 

institutions. 

• Satisfactory compliance 

with the first 2 quarters 

target; 

• Good working relationship 

with PO, LGU, and other 

sub-projects actors; 

• Quality performance of the 

PO; and 

• Strong linkages established 

for PO’s livelihood. 

18


Phase 

Criteria 

Prequalification 

Performance Evaluation 

C 

S 

D 

PO members should be Filipino 

citizens who are either: 

• Actually tilling portion of 

the area to be awarded; 

• Traditionally utilizing the 

resource for all or substantial 

portion of their livelihood; or 

• Actually residing within or 

adjacent to the areas to be 

awarded. 

• Conditions of the 

plantations 

• Physical accomplishment 

of PO 

• Physical and financial 

status vis a vis expected 

outputs based on fund 

expenditures 

M 

& 

E 

• An NGO with juridical status 

registered under the SEC, 

DOLE and/or the CDA; 

accredited by the DENR 

Regional Office concerned; 

has adequately-trained 

manpower with sufficient 

financial resources; has 

technical capability in 

implementing the M & E 

requirements; with integrity 

and commitment to 

environmental, social and 

community development 

issues; and are classified under 

the following: 

‣ Academe-Based 

Organization 

‣ Professional Organization 

‣ PO-Based Cooperatives 

‣ Other non-profit 

organizations 

• NGOs based in the region 

where the project site is 

located is preferred especially 

with the added good track 

record as an organization in 

similar or related projects. 

• Satisfactory 

accomplishments on: 

‣ Baseline survey 

‣ Site inspection to 

determine actual 

project status 

‣ Assessment of the 

benefits accruing to 

the community 

resulting from project 

activities 

‣ Structured surveys 

assessing impact of 

the project in the area 

• Review procedures were in 

accordance with DENR 

MC 99-17 

19


PROCESSING OF PAYMENTS 

A diagram showing the billing process for CO and CSD accomplishments 

follow: 

FSP Subproject Billing Process 

AO / PO CENRO (SUSIMO) 

PENRO DENR REGION 

Implements Contract 

Special Account (LP / 

GOP) 

Submits Monthly 

Accomplishment 

Report 

VBU inspects and 

validated monthly 

accomp. first week of 

succeeding month (3 

days) 

Prepares Record 

of 

Disbursement 

Prepares billings 

based on validation 

report and WFP/ 

Submits to CENRO 

Submits report to 

CENRO/ sends a copy 

to AO / PO & Region 

(3 days) 

CENRO endorses to 

PENRO (2days) 

PENRO REVIEWS, 

ENDORSES TO 

REGION (2 days) 

Receives Insp./Val. 

Report / billing request for 

review 

2 days 

ARED Focal Person 

Reviews the billings / 

Prepares voucher 

1 day 

ARED for Operation 

Approves Voucher 

PREPARES 

SUMMARY / 

SUBMITS TO NFDO 

1 day 

1 day 

Accounting Office 

Evaluates / processes 

the voucher 

Cashier Prepares & 

Signs check 

1 day 

Approves check by 

RED (ASAP) 

RECEIVES 

CHECK 

Releases checks by 

Cashier 

Monthly 

Prepares/Consolidates/ 

Submits SOEs 

Submits Monthly 

SOEs 

NFDO 

In case of M & E contracts, single payment is made upon submission and 

acceptance of the Final Report. Retention fee is paid after the NGO has 

submitted the comprehensive report of the over-all findings on the 

implementation of the project. 

20


THE CBFM PROJECTS 

As of December 31, 2003, the 5,503 CBFM projects covering 5,969,522 

hectares were at various stages of implementation. These are located nationwide 

with Region II having the biggest project in terms of project area as illustrated 

in this graph. 

CBFM PROJECTS 

Reg XII 

400963 

Reg XIII 

554970 

ARMM 

36890 

CAR 

719815 

Reg I 

99809 

Reg XI 

560545 

Reg II 

834245 

Reg X 

497506 

Reg IX 

435718 

Reg VIII 

271236 

Reg VII 

83051 

Reg V- 

203712 

Reg VI 

179496 

Reg IV-B 

803747 

Rg III 

245810 

Reg IV-A 

42009 

21

Part III 

PROVINCIAL ENVIRONMENT AND 

NATURAL RESOURCES OFFICE (PENRO) 

PROVINCES OF NUEVA VIZCAYA, 

PALAWAN, LEYTE AND BUKIDNON 

22

PENRO 

INTRODUCTION 

The DENR is the primary agency responsible for the sustainable management 

and development of the country’s natural resources. It has six (6) staff bureaus 

and a number of field offices as shown in the chart below: 

SECRETARY 

FMB LMB MGB RENRO 

(16) 

EMB 

PAWB 

ERDB 

FMB – Forest Management Bureau 

LMB – Land Management Bureau 

MGB – Mines & Geosciences 

Bureau 

EMB – Environmental Management 

Bureau 

PAWB – Protected Areas and 

Wildlife Bureau 

ERDB - Ecosystem Research and 

Development Bureau 

PENRO 

(74) 

CENRO 

(170) 

RENRO – Reg’l Environment and 

Natural Resources Office 

PENRO – Prov’l Environment and 

Natural Resources Office 

CENRO – Community Environment 

& Natural Resources Office 

The audit covered selected projects implemented by PENROs in Nueva 

Vizcaya, Palawan, Leyte and Bukidnon with offices described below: 

PENRO 

Nueva 

Vizcaya Palawan Leyte Bukidnon 

Region II IV-A VIII X 

Location 

Bayombong, 

Nueva 

Sta. Monica, 

Puerto 

Lopez Jaena 

St., Tacloban 

Malaybalay 

City, Bukidnon 

Vizacaya 

Princesa City City 

No. of CENROS 3 7 3 5 

Forest land (in hectares) 390, 387 1 ,041,850 168,970 507,802 

Alienable and disposable land (in 68,412 447,776 402,307 321,576 

hectares) 

Total land area (in hectares) 458,799 1,489,626 571,277 829,328 

Covered 

Municipalities 20 23 41 20 

Cities 2 1 2 2 

23

PENRO 

The classification and area of forest land of these Offices follow: 

5% 

1% 0% Nueva Vizcaya Forestland 

9% 

24% 

Mossy & Pine Forest 1,085.66 

Old Growth Forest 36,611.30 

Second Growth Forest 95,154.10 

Grassland/Brushland 232,458.58 

Agricultural Land 20,408.49 

Others 4,668.87 

61% 

PENRO – Palawan Forest Land 

2% 

7% 

17% 

Forest Reserves - 74,267 

Timberland - 174,883 

National Park - 767,320 

Civil Reservation - 25,380 

74% 

PENRO- Leyte Timber Lands 

44.17% 

30.17% 

Forest (Natural Stand) - 50970 

Mangrove Forest - 4225 

Mossy Forest - 12885 

Mangrove Reproduction - 179 

2.50% 

Brushland - 26078 

7.63% 

0.11% 

Others - 74633 

15.43% 

PENRO-BUKIDNON Forest Land 

24% 

3% 6% 

1% 

6% 

0% 

6% 

Forest Reserve 16,859 

Military Reserve 29,624 

Communal Forest 2,796 

National Park 32,447 

Communal Pasture 1,628 

Proclaimed Watershed 32,762 

Timberland 269,208 

Unclassified 122,478 

54% 

24

PENRO 

ORGANIZATIONAL STRUCTURE 

The organizational structures of the four PENROs follow: 

NUEVA VIZCAYA 

PENR Officer 

PENRO 

Secretary 

PENRO Exec. 

Asst. 

PENRO Task 

Force 

Planning Unit 

Accounting 

Section 

Admin. Section 

Bookkeeper 

Records 

Officer I 

HRMO I 

Acctg. Clerk 

Property 

Custodian 

Cashier I 

Utility/ 

Security Guard 

Cashier Clerk I 

Clerk II/ 

Auditor 

Forest Management 

Section 

Protected Areas and 

Wildlife Section 

Land Management 

Section 

Ecosystem Research 

& Devt. Section 

CENRO Aritao 

(63) 

CENRO 

Bayombong 

CENRO Dupax 

(63) 

25

PENRO 

PALAWAN 

PENR Officer 

Planning 

Section 

Finance 

Services 

PAWS/ 

ADS FMS LMS ERDS EMS 

CMMS 

CENRO 

PPC 

(61) 

CENRO 

Narra 

(42) 

CENRO 

Quezon 

(31) 

CENRO 

Brooke’s Pt. 

(53) 

CENRO 

Roxas 

(43) 

CENRO 

Taytay 

(32) 

CENRO 

Coron 

(35) 

LEGEND: 

ADS – Administrative and Support Services 

FMS – Forest Management Service 

LMS – Land Management Service 

PAWS/CMMS – Protected Areas and Wildlife Services/Coastal Marine Management Service 

ERDS – Ecosystems Research and Development Service 

EMS – Environmental Management Service 

LEYTE 

PENR OFFICER 

ATTORNEY II 

PLANNING 

ADM. OFFICER II 

ACCOUNTANT II 

SR.FOREST MGT. 

SPECIALIST 

LMS-ENGINEER III 

MA II/BUDGET DES 

PROJECT MANAGER 

PERSONNEL OFFICER 

PAWS-EMS II 

CENRO PALO 

CENRO BAYBAY 

CENRO ALBUERA 

ENR Station Burauen, 

Leyte ENR Station 

Carigara, Leyte 

ENR Station Abuyog, 

Leyte, CEP, Inopacan 

& Hindang, Leyte 

JBIC, Palompon, Leyte 

ENR Station 

Tabango, Leyte 

26

PENRO 

BUKIDNON 

PENR Officer 

Secretary/ Bill 

Collector 

Operations 

Center 

Finance Admin. Land 

Mgnt. 

Forest 

Mgnt. 

Envl. 

Mngt. 

IPAS/ 

NIPAS 

CENRO 

Malaybalay 

CENRO 

Don Carlos 

CENRO 

Talakag 

CENRO Manolo 

Fortich 

CENRO 

Pangantukan 

In summary, the four (4) PENROs have personnel ranging from 16 to 204 and 

service offices of 5 to 8 as shown below: 

Region II Region IV Region VIII Region X 

PENRO Audited Nueva Vizcaya Palawan Leyte Bukidnon 

Total Personnel 16 102 204 67 

No. of service offices 5 8 6 6 

No. of CENROS 3 7 3 5 

FUNDING 

For CY 2004, allotment and obligation of Forest Management Program for 

PENROs follow: 

Nueva Vizcaya Palawan Leyte Bukidnon 

Allotment P38, 601,557.99 P3,834,000 P31,705,000 P50,014,515 

Obligation P38, 601,557.99 P3,575,500 P31,705,000 P50,014,515 

Utilization Rate 100% 93% 100%. 100% 

27

PENRO 

CBFMP ACCOMPLISHMENTS 

As of 12-31-04 Nueva Vizcaya Palawan Leyte Bukidnon 

# of CBFM Projects 21 39 78 145 

No. of POs 21 

Total Tenured Area 

19,073.20 72,011.00 23,558.71 140,709.06 

( in hectares) 

Project area ( in hectares) 12,195.87 

CBFMA implementation 

1991 1991 

Year started 

In general, the implementation of CBFMP in the PENROs audited is assisted by 

the following: 

PENRO 

Bukidnon 

Palawan 

Leyte 

Nueva Vizcaya 

Assisting Office 

Environment and Natural Resources Office 

Bukidnon Environment and Natural Resources Office 

Bukidnon Watershed Protection & Development Council 

Local Government Units 

Non-government Organizations 

Other Government Agencies 


Provincial Planning Development Office 

Palawan Council for Sustainable Development Staff 











PROFILE OF PROJECTS AUDITED 

The projects covered in the audit follow: 

LOCATION/ 

PROJECT 

Nueva Vizcaya 

DWSP 

DESCRIPTION 

Dumayop Watershed Sub-project (DWSP) is one of the three subwatershed 

components of the main Magat Watershed Rehabilitation Project. 

28

PENRO 

LOCATION/ 

PROJECT 

DESCRIPTION 

The project is geographically located in the municipalities of Bagabag and 

Quezon, Nueva Vizcaya. It is covered by a CBFMA with a total area of 3,870 

hectares of which 1,710.24 hectares was developed under the CSD component of 

the FSP implementation. It is composed of three parcels: 

Parcel 

Location 

I • Sitios of Sinalang, Burburnay, Dyayan & Totong of barangay Bonifacio 

• Diffuncian of barangay Calaocan, within the municipality of Quezon, 

Nueva Vizcaya 

II • Sitios Dumayop and Amballo of barangay Baretbet, and 

• Tawi-tawi of barangay Pogonsino, municipality of Bagabag 

III • Sitio Tabban, Pogonsino, of Bagabag, Nueva Vizcaya 

DWSP intends to improve the socio-economic conditions of the sub-watershed’s 

Indigenous Cultural Communities (ICC) by generating alternative livelihood 

opportunities through community-based watershed rehabilitation approach 

involving forestation and agro-forestation strategies while enhancing the 

environment and enriching the biodiversity of the natural forest. The project’s 

specific objectives are: 

• To transform the local communities into empowered entities with the capability to 

manage the watershed resources for self-help and self-reliance, 

• To reforest a total of 1,263.98 hectares of open and denuded areas of the 

watershed for protection purposes; 

• To establish a total of 116.25 hectares of agro-forestry area for fruit and fuel 

wood production as major sources of community income; 

• To establish a total area of 10 hectares of vegetative soil erosion control measures 

in the form of bamboo clumps along stream banks; 

• To establish 320 hectares of rattan plantation within the existing secondary forest; 

and 

• To improve the biodiversity of the remaining old growth forest and second growth 

forest through enrichment planting or other forms of assisted natural regeneration 

techniques. 

The different project components were implemented by the following: 

Project 

Contract 

Component Contractor Date Period Cost 

Community 

Organizing 

Env. Neighborhood Ass. of Tech. 

Inc. (ENATI) 

03-17-97 2 years P5,297,036.30 

Comprehensive 

Site Development 

(CSD) 

Biagen ti Dumayop Ken 

Aglawlaw a Kabakiran, Inc. 

(BDAKAI) formerly 

Dumayop- Magat Agro Forest 

Dev’t. Ass’n., Inc. (DMADAI) 

07-O3-97 6 years 38,173,175.64 

(revised) 

29

PENRO 

LOCATION/ 

PROJECT 

DESCRIPTION 

Project 

Contract 


Monitoring and 

Evaluation: 

• Physical 

• Institutional & 

Project Benefit 

Assessment 

Infrastructure 

Farm to Market 

Road 

Friends of the Environment for 

Development and 

Sustainability, Inc. (FRENDS) 

Brostan Const. and Dev. Corp. 

various various P 3,956,587.76 

various 

09/05/02 9 mos. 

various 430,000.00 

P12,684,670.68 

Palawan 

STAGBAK MRSP 

A CBFMA was issued to DMADAI on February 18, 2002 covering 3,780.06 

hectares. 

The STAGBAK Mangrove Rehabilitation Sub-project (STAGBAK MRSP) 

covers four (4) barangays of Puerto Princesa City, namely Sta. Lourdes, Tagburos, 

Bacungan and Kamuning, collectively known as STAGBAK. This is one of the 59 

subprojects financed by Japan Bank for International Cooperation (JBIC) PH 

Loan 135, at a total contract cost of P22.504M, the details of which follow: 

Project 

Contract 


Community Wellspring Mgt. 12/25/00 2 years P 2,740,000.00* 

Organizing Corp. (WMC) 

Comprehen sive Site Development 

• Sta. 

Lourdes 

Samahang 

Mangingisda ng 

Honda Bay (138 

members) 

12/29/00 3 yrs. 1,115,216.85 

• Tagburos Tagburos Aqua- 12/29/00 3 yrs. 2,023,837.59 

Venture MPC (49 

members) 

• Bacungan Bacungan Coastal 12/29/00 3 yrs. 1,970,568.79 

Development 

Residents 

Association, Inc. 

(65 members) 

• Kamuning Coastal Residents 

Development 

Asso., Inc. (90 

members) 

Total 

12/29/00 3 yrs. 6,178,306.78 

P11,287,930.01 

Monitoring and Evaluation 

• Physical Geospatial Tech. No 66 cal 

Solutions, Inc. data days P1,011,500.00 

30

PENRO 

LOCATION/ 

PROJECT 

DESCRIPTION 

Project 

Contract 


Monitoring and Evaluation 

• IPBA* Greenheart Consults available 

P 189,787.50 

Internationale Corp. 

Total 

P1,201,287.50 


• FMR** P6,685,253.44 

• Banca 590,000.00 

TOTAL 

P22,504,470.94 

*IPBA - Institutional Project Benefit Assessm ent 

**FMR - Farm to Market Road 

The project implementation was awarded to four POs with an average of 80 

members, majority of whom are fishermen and ordinary housewives. The subproject 

specifically aims to improve and restore the coastal environment of Honda 

Bay and part of Puerto Princesa Bay through the establishment of 1,644.51 

hectares of mangrove plantation. 

• San Isidro, 

Roxas 

CBFMP 

Leyte 

PMRSP 

The coastal communities within the site basically depend on the mangrove and 

related aquatic resources for livelihood. Thus, decrease in mangrove forests 

affected the communities. Hence, the sub-project also aims to provide livelihood 

projects to the residents of coastal barangays. Infrastructure projects were also 

constructed to stir economic activity in the community. 

The project is located at the Sitios of Mararag, Pinagtuyuan, Pinagbuduan, 

Matadling, Panalsangan, Matimbang and Durian, San Isidro, Roxas, Palawan. The 

project covers an aggregate area of 782.81 hectares and was financed from the 

annual regular budget of PENRO-Palawan. Project implementation was awarded 

to a People’s Organization called Barangay San Isidro Integrated Social Forestry 

Beneficiaries Multi-Purpose Cooperative (BSIISFBMPC) which was awarded 

with Community Based Forest Management Agreement (CBFMA) on December 

21, 2000. It aimed to establish forest tree plantation, maintenance and protection. 

As envisioned in its Community Resource Management Framework (CRMF), the 

PO was to pursue reforestation, forest protection, agro-forestry, timber stand 

improvement (TSI), Assisted Natural Regeneration (ANR), etc. As provided in the 

affirmed Annual Work Plan (AWP) and Resource Use Plan (RUP) for 2003, the 

organization is authorized to utilize 48.16 cu. m of felled logs, standing dead and 

defective trees and 647.96 cu.m. of planted trees. It is estimated that annual net 

income of the PO will amount to P150,717.96 derived from the harvest of 26.27 

cu.m. of premium wood and 21.89 cu.m. apitong or a total of 20,419.84 bd.ft. 

Inventory conducted in August 2003 showed 332.66 cu.m. of gmelina and 183.2 

cu.m. of acacia mangium inside the reforestation area and another 132.1 cu.m 

outside the government reforestation due for harvest. There are also minor forest 

p roducts like rattan and honey which will provide additional income to the 

cooperative. 

The Palompon Mangrove Rehabilitation Sub-project (PMRSP), funded under 

Japan Bank for International Cooperation (JBIC), aims to rehabilitate the once 

fully covered by mangrove forests islets in barangays Cruz, Plaridel, Baguinbin, 

and Cangcosme, all of the municipality of Palompon, Leyte. The forest cover 

31

PENRO 

LOCATION/ 

PROJECT 

DESCRIPTION 

dwindled as years passed by and the natural resources gradually depleted due to 

the cutting of mangrove trees by nearby communities for fuel woods and 

construction materials. 

The sub-project also aims to provide livelihood projects to the residents who are 

basically dependent on mangrove and related aquatic resources as the main source 

of livelihood. 

PMRSP had a total contract cost of P26.75M with the following components: 

Project 

Component Contractor Contract Period Contract Cost 


Organizing 

EDCAI 

Ph. I – 11/ 20/ 00 

to 5//20/2001 

Ph. II – 9/11/01 

to 3/11/03 

P2,246,545.26 

CSD BAKHAW, Inc. 2/ 22/01 to 6/30/03 20,216,000.00 

M & E 

• Physical TPEC-MPDAI 12/02 to 6/03 835,245.41 

• IPBA VIRTUE, Inc. 12/02 to 6/03 196,300.50 


• Road Rehab. A & C Enterprise 12/ 8/02 to 6/30/03 3,922,829.51 

• Concrete Pathway 1,586,087.23 

Totals 

P26,756,462.65 

Legend: EDCAI – Eco-Environmental Development Concern Association 

BAKHAW - Bililhong Ani sa Katunggan Hangtud sa Walay Katapusan 

TPEC-MPDAI - Taft People Economic Council Multi-Purpose Dev. Assoc., Inc. 

ACUFI 

Bukidnon 

PWRS 

The CBFMA was awarded to BAKHAW, Inc. on September 20, 2002 covering 

1,396.3 hectares. The PO has 210 members, majority of whom are fishermen and 

ordinary housewives. 

CBFMA was awarded to Association of Capoocan Upland Farmers, Inc. (ACUFI) 

on March 8, 1999 specifically for the protection and maintenance of the project. 

The project, which was formerly a Community Forestry Project (CFP) and 

converted into CBFM in 1998 under Executive Order No. 96-29, is located within 

the political jurisdiction of Barangays Manloy, Culasian and Sitio Salvacion, 

Barangay Balucanad, Municipality of Capoocan, Province of Leyte. It covers 

1,575 hectares of which 1000 hectares is already developed composed of about 

705 hectares of residual dipterocarp forest, about 270 hectares brash/grass land 

and 125 hectares openland, cropland and cocoland, sporadically distributed 

within the CBFM project site. The remaining 575 hectares, composed of 

300 hectares reforestation plantation, 150 hectares of rattan plantation and 125 

hectares of agroforestry farms, is proposed to be developed under CBFM 

implementation from CY 1999 until its completion. 

The ACUFI is composed of 125 members from Barangays Culasian, Manloy and 

Balucanad, Capoocan, Leyte. 

Pulangui Watershed Rehabilitation Project (PWRS) is one of the 55 projects 

funded under JBIC Loan II. It covers part of the Upper Pulangui Watershed with a 

project area of 5,095.72 hectares covering the following sites: 

Sacramento Valley 

Little Baguio 

Halapitan 

Concepcion 

Barangay Municipality/City 

San Fernando 

Valencia City 

32

PENRO 

LOCATION/ 

PROJECT 

DESCRIPTION 

PWRS intends to rehabilitate the watershed’s vegetative cover, minimize soil 

erosion losses and improve the water yield and quality of the tributaries and major 

waterways, among which, is the Pulangui River. The river is considered one of 

most important resources in the province as it irrigates highly productive rice 

fields and generates 255 megawatts of electric power. PWRS also aims to improve 

ecological balance and uplift the socio-economic condition of the community. 

The different project components were implemented by the following: 

Project 

Component Contractor/PO Particulars 


Organizing 

CSD (area in 

hectares) 

Monitoring & 

Evaluation 

The Network 

Foundation Inc. 

(TNFI) 

Organized the following 

POs: 

• PAGTUKAS 

• OSA-TFAI 

• SAHA-TFAI 

Cost 

(in 

million) 

Status 

P2.099 completed 

Values, Inc.* OSA – TFAI 

SAHA - TFAI .923 terminated 

Blessed Phils. , CEDAMCO 

Inc. 

2.651 completed 

Sub-total 

P 5.673 

PAGTUKAS 1,002.00 19.929 

OSA 810.00 16.157 

SAHA 1,785.72 37.746 completed 

CEDAMCO 1,498.00 34.016 

Sub-total 5,095.72 has. 107.848 

LEAF Foundation Physical Validation – 

(LEAF) 

CEDAMCO 


Mindanao Physical Validation– OSA .550 

Integrated Physical Validation- 1.392 

Management SAHA 

Foundation Physical Validation – 1.669 

(MINMAF) OSA & SAHA 

Physical Validation (Final 1.073 

Pass) – OSA & SAHA 

Mt. Kitanglad Physical Validation - 

.831 

Community PAGTUKAS 

Development 

Foundation Inc. 

(MKCDFI) 

Institutional and Project .294 

Benefit-OSA, 

CEDAMCO, 

PAGTUKAS, SAHA 

Physical Validation – 

CEDAMCO &PAGTUKAS 

1.553 

Physical Validation – 1.011 

CEDAMCO &PAGTUKAS 

Sub-total P9.762 

Infra. 

Development 

ULTICON 

Builders 

Rehab. of 11.3 kms road 

and const. of 3.1 kms. 

concrete foot bridge 


Sub-total P34.156 

Total P151.39 

Legend: 

PAGTUKAS - Pagpalibud Tu Kakahuyan Asso., Inc. 

OSA-TFAI - Onward Savers Tree Farmers Association, Inc. 

SAHA-TFAI - Sail-Halapitan Tree Farmers Asso., Inc. 

CEDAMCO - Community Environmental Dev. & Mgt. of Concepcion Inc. 

* - taken over by TNFI 

33

PENRO 

LOCATION/ 

PROJECT 

CALVUPA 

DESCRIPTION 

On account of such pro jects, CBFMA were issued as follows: 

CBFMA 

Number Date PO 

Tenured Area 

(in hectares) 

55010 06.13.99 PAGTUKAS 1,435.40 

55011 06.25.99 OSA 1,120.92 

55012 06.24.99 CEDAMCO 4,485.02 

55013 06.18.99 SAHA 7,768.43 

Total 14,809.77 

Cabayugan Laligan Valencia Upland Farmers Association (CALVUPA) is funded 

by the Provincial Government of Bukidnon. It is formerly known as Laligan ISF 

Project, a devolved project established in 1987, located in Laligan, Valencia City 

covering an area of 213.8 hectares with a total of 116 beneficiaries. 

The plantations were established in 1993 and 1994 on a 27.5 and 45 hectare areas, 

financed by beneficiaries’ loans amounting to P165,000 and P275,000, 

respectively, from the Provincial Government of Bukidnon. 

Pursuant to EO 263, the project was converted into a CBFM project. As of audit 

date, the issuance of CBFMA to the PO named CALVUPA is still in process. 

CALVUPA was registered with the Department of Labor and Employment on 

May 19, 2004 under registration no. 10-2968-04. 

34

Part IV 

Audit Observations 

35

Chapter 1 

Effective Community Organizing 

36

EFFECTIVE COMMUNITY ORGANIZING 

INTRODUCTION 

Community organizing is a process by which a community identifies its needs 

and develops the confidence and the will to work and find resources to meet 

such needs. 

Under EO 263, CBFM is prescribed as a national strategy in the implementation 

of forestry sector projects. It is based on the concept that efficient and sustained 

management of forestlands and coastal areas is a result of responsible resource 

utilization by organized and empowered local communities. Thus, the need for 

effective Community Organizing (CO). 

CO aims to mobilize the communities and develop/strengthen their capabilities 

to implement subprojects activities and become long-term resource managers. 

The audit, however, disclosed that community organizing was not effectively 

undertaken. Core activities under the CO contracts were not implemented 

contributing to the failure to transform the POs into viable entities capable of 

managing the subprojects on a long-term basis. 

OBSERVATIONS 

1. The capability of the POs to manage the forest on a long term basis 

was not fully developed during the conduct of community 

organizing due to inadequate training. This contributed to the 

suspension and termination of livelihood projects initiated with the 

assistance of CO contractors. The absence of livelihood sources is 

adversely affecting the ability of the POs to maintain the CBFM 

area. In the case of PMRSP, the PO’s apparent concentration on 

livelihood projects adversely affected the maintenance and 

protection of the established plantation. 

Recognizing the communities as partners in the development and 

beneficiaries of program services under the CBFM program, community 

organizing was conceptualized as one of the major project component. It is 

a process of providing the communities with skills and capabilities on 

technical, social and managerial aspect and transforming them into an 

37


organized, self reliant and self governing entities. Specifically, this activity 

aims to: 

• Enhance the knowledge and awareness of the community in 

conducting a continuing and effective information, education and 

communication (IEC) activities; 

• Develop appropriate leadership and membership capabilities of the 

community that will mobilize them toward the attainment of the 

subproject objectives; 

• Conduct training activities defined under the Subproject Appraisal 

Report that are designed to socially and technically prepare the 

community in undertaking subproject activities; 

• Assist the community in the preparation of feasibility studies and 

implementation of viable livelihood projects within the subproject 

site; 

• Provide technical assistance to the community on various subproject 

activities; and 

• Develop the community into a viable entity that is capable of 

managing the subproject on a long-term basis, through the 

community-based approach. 

In order to ensure the success of Community Organizing, the activities 

required to be undertaken as defined under MC 97-01 included the 

preparation of feasibility studies for livelihood projects, conduct of training 

needs assessment, development of training design and conduct of 

continuing social, technical and managerial training activities intended to 

strengthen and develop the local organizations into viable entities capable 

of managing the sub-projects on a long term basis. 

The implementation of community organizing in the four subprojects 

funded under JBIC loans were contracted to Non-Government 

Organizations (NGOs)/Assisting Organizations (AOs), tabulated as follows: 

Location 

Name of Project 

Name of 

AO/Contractor 

Contract 

Cost 

Duration 

(years) 

Nueva Vizcaya DWSP ENATI P 3,697,057.00 2 

Palawan STAGBAK MRSP WMC 2,718,245.28 2 

Leyte PMRSP EDCAI 1,771,524.00 1-1/2 

Bukidnon PWRS TNFI 

Values, Inc. * 

Blessed Philippines 

Total 

* taken over by TNFI 

1,440,607.98 

1,504,683.78 

2,775,950.88 

P13,908,068.92 

3 

2 

3 

The team noted that the Assisting Organization in the PMRSP was able to 

conduct all the required activities to be undertaken during community 

organizing. The organized PO then was able to establish and manage 

38


livelihood projects which are mostly operational at the time of inspection. It 

was, however, noted that the apparent concentration on livelihood projects 

adversely affected the maintenance and protection of the established 

plantation with survival rate as of inspection date of only 62%. 

On the other hand, in three (3) other projects, the CO activities may not be 

considered satisfactory. This condition affected the POs capability to 

manage the sub-project as discussed below: 

• Not all required activities to be undertaken under MC 97-01 were actually 

undertaken. This is best illustrated in the case of DWSP where only nine (9) 

out of the twenty (20) identified training needs were conducted by ENATI. 

The trainings have minimal participants who were mostly PO officers. It was 

noted that only about thirty (30), out of the nine hundred sixty-five (965) 

reported beneficiaries participated in these seminars. The identified training 

needs not undertaken follow: 

Topics 

Farm Appraisal and Planning 

for Soil and Water 

Conservation Strategies 

Alley Farming with Livestock 

Raising 

Giant Bamboo and Propagule 

Production (with feasibility 

studies ) 

Training on Upland Crop 

Production Technology 

Training on Women in 

Environment and Development 

Trainors’ Training 

Remarks/Possible Effect 

The PO was not oriented on various soil and 

water conservation strategies. The team 

observed that Kaingin system is still rampant in 

the area and the Model Farm envisioned in its 

2003 AWP has yet to be established. 

PO members verbalized during interviews that 

they still need trainings that could help them 

establish other livelihood projects. 

These trainings could have guided the POs in 

establishing other livelihood projects and in 

improving upland farming techniques. 

This training could improve and strengthen 

social interactions among DMADAI and 

community members. 

This training could have enhanced the skills of 

the DMADAI officers in conducting meetings, 

trainings and symposiums. As gathered in the 

interviews, PO affairs/activities were mostly 

attended by PO officers only. 

• Some activities undertaken did not produce satisfactory results due to short 

period of training and inadequate feasibility studies. This resulted in the 

suspension and termination of a number of livelihood projects and individual 

operation of others due to unsuitable climate, absence of market, high costs 

of farm inputs and unavailability of raw materials as exemplified in the 

following livelihood projects established in DWSP, PWRS and STAGBAK 

MRSP. 

39


Livelihood/ Date Started/ 

Investments 

DWSP - DMADAI 

Tilapia production/ November 

2002 / P50,000.00 

Project Status/Remarks 

While training was conducted in November 1997, the 

livelihood project was established only on Nov 2, 2002 

or two years after the CO contract expires. The project 

was already terminated as of August 2004. 

As reflected in the CENRO report, this project failed 

due to water shortage in the area, an indication that the 

feasibility study was not properly undertaken. 

A number of PO members interviewed by the team 

were not aware of the existence of this project further 

indicating lack of transparency in financial operation 

and minimal and/or lack of participation/interest of PO 

members in the organization’s activities. 

Sari-sari Store/1997 / P2,500 The sari-sari store did not succeed due to 

mismanagement of funds and was eventually 

terminated as of August 2004. Interviews disclosed that 

some members did not pay the goods obtained through 

credit and credit policies were not regulated. This 

indicates that the concept of a cooperative was not yet 

inculcated in the minds of the PO officers and 

members. 

Mushroom culture/ 1997/ P2000 The project was also terminated as of August 2004. 

While there is a market for cultured mushroom, 

interviews revealed that production stopped due to 

unavailability of spawn. The difficulty of securing 

spawn could have been detected during the conduct of 

the feasibility study and alternative sources identified 

therein and arranged properly. 

PWRS 

PAGTUKAS 

Vegetable gardening (livelihood 

promotion) 

Banana trading 

On-going, but on individual basis due to high 

cost of farm inputs. 

On-going, but on individual basis. PO 

experienced difficulty of collecting receivables 

from previous buyers. 

Fishpond 

Only few members continued the project but on 

individual basis due to limited knowledge on 

fishpond management. 

Corn-cassava relay 

Suspended due to wet climate. 

40



Investments 

SAHA 

Rattan furniture 

Canteen 

Micro-agro lending 

Computer/photocopier 


Suspended. Services of PO members terminated 

when permitee experienced documentary 

problems. 

Suspended as these were envisioned to co-exist 

with the CSD acitivities. 

Suspended, machine under repair. 

Banana trading 

On-going but on individual basis 

Fresh water fish production 

Vegetable production 

CEDAMCO 

Vegetable production 

Corn-cassava-peanut relay 

Only few members continued the project but on 

individual basis due to limited knowledge on 

fishpond management 

On-going, but on individual basis due to high 

cost of farm inputs. 

On-going, but on individual basis due to high cost of 

farm inputs. 

Suspended due to limited market. 

Catfish production 

OSA 

Banana Trading 

Suspended due to limited knowledge on fishpond 

management. 

On-going but on individual basis. The PO experienced 

difficulty of collecting receivables from previous 

buyers. 

Vegetable Production 

On-going, but on individual basis due to high cost of 

farm inputs. 

Canteen 

Rice Pawning 

Micro-lending 

Coffee Production 

Suspended as this was envisioned to co-exist with the 

CSD activities. 

Suspended. Birds attack the farm. 

Suspended due to difficulties of collecting receivables. 

Suspended alledgedly due to inappropriate spacing 

which affected the growth and quality of produce. 

41



Investments 

Abaca Production 

Fishpond 

STAGBAK MRSP 

TAVEMCO 

Mud Crab Fattening 

P10,000 

Fishing Boat 

SAMAHOBA 

Micro Lending 

BCRDAI 


Sari-sari store 

KCRDAI 



Suspended. Variety of abaca chosen did not thrive in 

the area. 

Only few members continued the project on individual 

basis due to limited knowledge on fishpond mngt. 

Non operational since Oct. 2003. Contact buyer no 

longer interested 

Compressor fishing banned by the City Government. 

Non operational as of June 30, 2005. Operation 

temporarily stopped in preparation for the election of 

new officers. 

Non operational since April 2003. Labor cost exceeded 

income generated. 

Non operational since April 2003. Income generated 

minimal & not enough to defray labor cost. 

Discontinued as members are busy attending to their 

individual livelihood activities. 

There were, however, livelihood projects that are still operating as of 

inspection date though experiencing some difficulties on collection such as: 

PO 

PWRS 

PAGTUKAS 

SAHA 

CEDAMCO 

OSA 

STAGBAK MRSP 

TAVEMCO 

SAMAHOBA 

BCRDAI 

Livelihood Project 

Cattle dispersal, transport services 

Cattle dispersal, chairs rental, solar dryer and transport services 

Banana trading, lending to banana traders, hog dispersal and 

transport operation 

Cow dispersal 

Micro lending 

Water system 

Nipa plantation and micro-lending 

At the DWSP, it was noted that the trainings conducted to strengthen the 

PO’s capability to manage was limited to only three (3) trainings for 1-2 

days each while at the PWRS, total training days was only between 16 to 30 

per PO. These periods may not be considered adequate to develop and 

strengthen the managerial skills/capability of the POs as manifested by the 

reported fund mismanagement, lack of cooperation and concerns by PO 

members. 

The establishment of livelihood project is an important component of the 

CBFM strategy in ensuring the success of any CBFM project as this would 

provide financial support to PO members while waiting for harvesting of 

forest products. 

42


The failure of the CO to attain its ultimate objective of transforming the 

community into viable entities capable of maintaining the forest were 

manifested in the present condition of the CBFM areas which are not being 

adequately protected and maintained. The absence of protection and 

maintenance activities adversely affected the sustenance of the survival 

rates attained upon CSD termination. 

On the other hand, the apparent concentration of the organized PO at the 

PMRSP in managing its livelihood projects adversely affected the 

maintenance and protection of the established plantation. The DENR 

claimed that its low survival rate of 61.88% as of February 2006 was partly 

attributed to the PO’s failure to conduct maintenance and protection 

activities as they refocused their budget to livelihood projects. 

Management’s Comments 

Provided by FMB 

Community organizing (CO) is 

designed to encourage community 

participation and later evolved into 

community development and 

empowerment. It is a continuing 

process of capability enhancement and 

strengthening organizations. 

As cited in the report, while it is true 

that the capability of the POs to 

manage the forest on a long time basis 

was not fully developed during the 

conduct of community organizing, it 

can be attributed to the very limited 

number of CBFM staff working with 

the communities and the resources 

provided by the government. There is 

really a need to strengthen the conduct 

of CO and capability enhancement. 

Thus, instead of dealing on the 

negative side of the report, we will 

appreciate it very much if you will 

consider in your final report the 

limitations of the government in 

providing the needed support to 

empower and make viable entities out 

of POs. 

Team’s Rejoinder 

The team recognized that capability 

enhancement of POs is supposed to be 

a continuing activity. However, as it 

is, after community organizing, the 

training and assistance given to the 

POs were very limited. Thus, their 

capability was not enhanced which 

adversely affected their capability to 

manage the forest in a long term basis. 

On the other hand, government 

limitations in terms of providing 

adequate staff and resources to 

oversee the implementation of the 

program and provide the needed 

assistance should have been 

considered even before the program 

was carried out. If these are being 

considered by the DENR as some of 

the stumbling blocks in the success of 

the program, then representations with 

the Department of Budget and 

Management and all sectors concerned 

should be made. 

43


2. Communities within PWRS area were not fully transformed into 

POs capable of managing the forest in a long term basis. About 

47% of the total households were non-PO members. There were 

also forest protection activities which were not undertaken by the 

POs after termination of CSD contracts. As a result, forest fires 

were not prevented nor contained destroying at least 50 hectares of 

plantations established under CSD contracts. 

The communities within PWRS area were developed into four (4) POs 

organized to maintain the entire area. It was, however, disclosed in the 

Terminal Report that 979 households representing 47.11% of the total 

households within the PWRS were not PO members. This is contrary to 

CBFM principle of complete community participation. 

The profile of households in the CBFM area follows: 

CBFM Area Households 

2500 

2000 

1500 

1000 

500 

0 

CEDAMCO PAGTUKAS OSA-TFA SAHA TOTAL 

Non-members 208 127 406 238 979 

PO members 352 232 162 353 1,099 

Despite this condition, the entire area was awarded to the four (4) POs 

including the areas occupied and being tilled by non-PO members. The 

presence of non-PO members in the area not only hinder the attainment of 

CBFM principle of community participation in forest management and 

biodiversity conservation but resulted in non-development of vast tracks of 

land under their claim. 

Ocular inspections conducted by the team within the CBFM area disclosed 

that the areas left open / idle and without any traces of improvement were 

mostly occupied by non-PO members. The team further observed that 

massive upland cultivation is being practiced by non-PO members in their 

occupied area. Open areas as reflected in the respective CRMF of the POs 

is equivalent to 3,981.29 hectares or 25.81% of the total CBFM area as 

presented in the next page: 

44


CBFM Area 

20,000.00 

15,000.00 

10,000.00 

5,000.00 

W/ DEV'T. AREA 

OPEN 

- 

CEDAMCO OSA-TFA PAGTUKAS SAHA-TFA TOTAL 

3,361.75 1,017.05 1,379.00 5,684.10 11,441.90 

1,123.27 717.69 56.00 2,084.33 3,981.29 

The POs, however, committed in their work plans to develop the open area 

as shown below: 

PO 

Planned Utilization/Activities 

CEDAMCO 

OSA-TFA 

PAGTUKAS 

SAHA-TFA 

To develop the uncultivated land area of 976.76 

hectares within the CBFMA area for abaca, tree 

plantation and agro-forestry plantation. 

No planned activities relative to open areas. 

Expansion of production forest by 300 hectares 

composed of 50 hectares abaca, 50 hectares coffee and 

200 hectares banana plantations. 

Inquiry from PO officers disclosed that development of the open areas is 

hindered not only by lack of funds but also by legitimate rights of the 

claimants who are non-PO members. 

Under the CBFMA, the POs are also responsible to protect the entire forest 

lands within the CBFM area against illegal logging and other unauthorized 

extraction of forest products, slash and burn agriculture (kaingin), forest and 

grassland fires and other forms of forest destruction. This function is thus 

incorporated in the POs’ CRMF and Annual Work Plan (AWP). This is 

precisely the very reason why the POs were being organized during 

community organizing into a viable institution capable of managing the 

CBFM area on a long term basis. 

Records, however, revealed that apparently, the required protection and 

maintenance activities were also not undertaken. Interviews with POs 

45


revealed that, in a number of instances, forest fires were found to emanate 

from cigarette butts thrown to tall grasses (talahib) destroying plantations 

established, some of which were already replanted. 

This manifests that strip brushing, one of the protection activities required 

under the CBFMA was not undertaken. It must be noted that strip brushing 

is a suggested maintenance strategy to ensure fast growth of plantations 

aging from 1 to 3 years and a good mitigating measure to prevent forest fire. 

The team was informed that the activity was discontinued upon the 

termination of CSD contract as funds were no longer provided for the 

purpose. Continuous strip brushing is required to be undertaken until the 

grasses have been dominated/suppressed by planted trees. 

It was also noted that forest fire that occurred on February 28, 2005 

destroying about 50 hectares of plantations established by SAHA-TFA was 

not contained as firelines/firebreaks were not established or maintained. The 

fast spreading of fire also manifests that the designated forest fire brigade 

consisting of PO members was not capable of protecting/ containing forest 

fire. 

CSD areas previously damaged by fire 

Ocular inspections of the CBFMA area disclosed that banana plantations 

which can serve as firebreaks were established in agro-forestry as source of 

livelihood but not established along boundaries to serve as firebreaks. 

Banana plantations established in parcels 

46


CENRO-Malaybalay explained that the effort of the POs to establish 

firebreaks such as banana to save plantation from forest fire was affected 

by budgetary constraints. The establishment of firebreaks was, however, 

part of project design prescribed in the feasibility study. As such, these 

should have been established in the proper places during CSD 

implementation when funds were still available. 

It was also observed that during the team’s inspection, firelines established 

during CSD implementation were not maintained. Thus, strong winds 

make fires almost unstoppable as it could easily cross the established 

firelines. 

It would appear then that the following activities reportedly performed by 

CENRO-Malaybalay to prevent occurrence of forest fire were not 

sufficient to protect the forest. 

• Training on forest fire preparedness. 

• Reminders to all CBFMA PO-Presidents of their responsibilities 

stipulated in the CBFM agreement to be vigilant in the protection of 

CBFMA area and to report to authorities any forest destruction detected. 

• Radio broadcast addressing forest protection. 

• Strip brushing. 

• Requiring identified culprits of burned areas to replant and augment 

affected areas at their own expense. 

They further claimed that a number of situations actually affected their 

efforts such as: 

• Not all CBFM residents are participants to CSD implementation. 

• Distance from their residences as most of the members are living in the 

poblacion. 

• The culture of Indigenous People (IPs) as part of their tradition in 

agricultural farming which is slash and burn cultivation. 

To address these concerns, CENRO- Malaybalay intends to implement the 

following forest protection mechanisms to minimize if not totally prevent 

occurrence of forest fire: 

• Conduct IEC to be undertaken jointly by the DENR and concerned LGU. 

• Give incentives in coordination with LGUs. 

• Work out for the transfer of responsibility over CBFM area to the LGUs. 

• Replant burned CSD areas. 

• Conduct culture enhancement. 

47



Provided by CENRO-Malaybalay 

Non PO members within CBFM areas 

can not be driven out even they do not 

join the organization as per our 

existing laws (RAs 8371, 7586 and 

7160). We cannot also suspend the 

issuance of CBFMA to those 

interested farmers due to noncooperation 

of some of the minority 

farmers within the watershed/ 

community. As a compromise, work 

and collaboration should already start 

to those interested farmers and 

overtime, we are confident that the 

course of nature will force them to 

join the organization and practice 

sustainable upland farming system 

principles, advocated by the CBFM 

community. Some of the compelling 

indicators which will ultimately force 

them to join includes low production 

due to poor soil management, 

exclusion in the financial assistance 

channeled through the organization 

and the non issuance of a tree cutting 

permit. On the other hand there are 

cases where farmers do not want to 

join the organization because of their 

personal indifference with some of the 

organizers/leaders which is already 

beyond our control. On the other 

hand, those who were not given the 

priority to receive assistance from the 

government, tend to distance 

themselves from the organization. 

Momentarily, non-participation by 

some members of the community may 

still be an issue but this is very 

temporary in nature. 

Per our assessment, the four (4) PO’s 

have already attained a certain degree 

of responsibility and commitment of 

protecting natural resources entrusted 

to them contrary to the audit 

observation. This is, if we compare 

them before the project implementa- 


While the team agrees with the 

CENRO that non PO members could 

not be driven out, the presence of 47% 

non PO members is affecting the 

development of the area. Considering 

that the PO and the DENR could not 

totally disregard the rights of non PO 

members and development on such 

areas could not be undertaken, there is 

a need to establish a minimum 

percentage of membership before 

awarding CBFMA. 

While it maybe true that only one 

major fire occurrence was noted by 

the team, this could have been 

prevented had the required protection 

activities been undertaken by the PO. 

It was reported that the fire occurrence 

destroyed about 50 hectares of the 

48



tion where all the grass land areas are 

razed down by fire every year after 

year during summer. The fact that 

only one (1) PO has fire occurrence 

out of the four (4) is already a strong 

manifestation that our efforts are 

impacting on the ground. Fire 

occurrences during summer can be 

traced to the traditional practices of 

our upland communities and 

Indigenous Peoples of preparing their 

land for the incoming cropping season 

after summer. Accepted principle is 

that we can not win their hearts and 

change their practices overnight, as 

this is even respected and recognized 

under the IPRA law. Transformation 

is a long lonely road and a painstaking 

process. 


established plantation. Besides, with 

duly established firelines, even if 

communities adopted traditional 

practice in farming, the established 

plantations could not have been 

greatly affected. 

49

Chapter 2 

Sound Implementation and Maintenance 

Strategies/Activities 

50

SOUND IMPLEMENTATION AND MAINTENANCE 

STRATEGIES/ACTIVITIES 

INTRODUCTION 

Plans are prepared to increase the rate of success of any endeavor. It is in the 

planning stage when the needed resources, strategies and specific activities 

necessary to be undertaken to attain the desired results are identified. 

The implementation of reforestation projects funded from foreign loans using 

the CBFM strategy is guided by the feasibility studies and influenced by 

policies of the national and local governments. Relative thereto, in order to 

ensure success, feasibility studies incorporating a thorough project appraisal 

should be properly undertaken and close coordination between and among the 

different CBFM implementers should be ensured. 

The audit disclosed that lapses in the preparation of project appraisal, 

community profiling, project execution, policies and procedures and 

coordination of activities among DENR offices and LGUs are adversely 

affecting the attainment of the desired survival rate of the established 

plantation. 

OBSERVATIONS 

1. The project appraisals were not thoroughly undertaken. Thus, 

projects included areas located within marine parks, birds and fish 

sanctuaries, with mineral deposits and with existing claims. These 

conditions adversely affected the normal growth of trees and 

sustainability of the survival rates attained upon project 

termination. 

As a matter of procedure and as required under existing regulations, the 

National Forestation Development Office (NFDO), DENR prepared 

appraisal report before implementing any reforestation project funded from 

Japan Bank for International Cooperation (JBIC). 

While this requirement was complied with, the team noted that apparently, 

the project appraisals were not thoroughly conducted as manifested by 

inclusion of areas unsuitable for planting and with mineral deposits and 

51

SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES 

existing claims. These conditions adversely affected the growth of trees 

planted and sustainability of the Weighted Average Survival Rate (WASR) 

attained upon project termination as discussed below: 

• Inclusion of areas with mineral deposits at the Dumayop Watershed 

Sub-project, Nueva Vizcaya which resulted in the destruction of the 

established plantation in the affected area. 

One of the requirements in the conduct of appraisal as indicated in the 

community profiling is gathering of data on mineral resources which 

could be secured from the Mines and Geosciences Bureau (MGB), the 

National Mapping Resource Inventory Authority (NAMRIA) and 

LGUs. 

Review of the DENR documents and inquiry with the MGB, however, 

disclosed that DENR did not request information or conduct site 

verification on potential mineral deposits within Magat Watershed 

Project or Dumayop Watershed Sub-project located at the towns of 

Bagabag and Quezon in Nueva Vizcaya. 

The team was further informed by MGB that they were ready with 

Mineral Resource Profile of the different provinces in Region 2 as early 

as 1995 and a listing of metallic and non-metallic prospects of Nueva 

Vizcaya where Bagabag was found to be endowed with gold and sand 

and gravel while Quezon is rich with gold and copper. As such, these 

information were not captured in the appraisal of Dumayop Watershed 

Sub-project conducted in 1996. 

In view of the failure of DENR to consider the mineral resources, the 

subproject area covered a portion containing manganese mineral 

deposits which were subsequently mined damaging 7.69 hectares of the 

established plantation as of November 14, 2005. The damaged area was 

estimated by the team to be P255, 826.54 of which only P99, 801 was 

recovered from the mining operator as of November 2005. 

Interviews with DENR personnel revealed that, and as observed during 

project inspections, the growth of trees planted in adjacent/near mineral 

deposits are stunted. Thus, in the terminal report of the sub-project, it 

was disclosed that the PO did not attain the minimum survival rate of 

80% with only 59.34% Weighted Average Survival Rate upon 

termination. 

52


• Inclusion of areas with existing claims and unsuitable for 

reforestation at STAGBAK MRSP, Palawan which resulted in 

survival rate of as low as 35.75% as of November 2005 despite 

massive replanting activities. 

The project appraisal for STAGBAK MRSP did not indicate any 

information on the biophysical characteristics of the area particularly 

on soil types, weather patterns, land resource use and management 

practices. It merely disclosed that the project was delineated on the 

topographic maps and that ground verification is required before 

implementation. The required ground verification was apparently not 

undertaken before implementation. This then resulted in inclusion of 

areas with existing claims which adversely affected the CSD 

implementation, as illustrated below: 

Sub-project 

Site 

Sta. 

Lourdes 

Tagburos 

Remarks 

• The enrichment component of CSD contract included 

about 3 hectares covered by foreshore lease of DYPR. 

Interviews with the PO disclosed that the permit for 

installation of transmitter of DYPR was secured from the 

barangay and that the foreshore lease agreement was 

executed between ABS-CBN and DENR-Manila Office. 

DYPR is a provincial radio station of ABS-CBN. 

• A certain Mr. Palanca has allegedly land claims over 

portion of CBFM area. 

• The 2 hectares Mud Crab Fattening project established 

through the assistance of Center for Renewable Resources 

and Energy Efficiency (CRREE) is situated within the 

boundaries of Foreshore Lease Agreement (FLA) No. 

3230 entered into between BFAR and a certain Mr. 

Manuel Felarca. The FLA of Mr. Felarca was uncovered 

when the Mud Crab project at Tagburos was established. 

Interviews disclosed that Mr. Felarca emphasized during 

the establishment of the livelihood project that the Mud 

Crab area should not be expanded and that established 

structures should be removed as soon as the crabs are 

harvested. Unfortunately, the mud crab project of the PO 

with total project cost of P393,840 reflected in the 

feasibility study did not succeed. The members of the PO 

accounted the failure of the project to the Felarca Case as 

this hindered access to the project site causing loss of 

members’ interest to pursue the project. 

53


Sub-project 

Site 

Bacungan 

Kamuning 

Remarks 

• A certain Umali family has allegedly land claim over 

portion of the CBFM area. The area covered was not 

disclosed and no formal claim was filed. 

• A certain Basco family has allegedly land claim over 

portion of CBFM area. The area covered was not disclosed 

and no formal claim was filed. 

Interviews with the concerned DENR personnel on the foregoing issues 

disclosed that conflicts over the CBFM areas arose during the 

implementation stage since no actual mapping and delineation of 

project boundaries were made before the projects were undertaken. 

Thus, issues on existing claims were not settled before the project 


The affected areas were eventually excluded in the final boundaries of 

CBFMA area to give way to prior claimants. It may be noted that these 

areas were already enriched by the POs and accomplishments paid by 

the DENR before the same were excluded. 

Meanwhile, GTSI report showed a weighted average survival rate of 

only 35.75% as of July 4, 2003 on reforestation component. This 

condition further deteriorated as report of the SUSIMO as of November 

2, 2005 reflected only 15.22% survival rate. 

The team’s ocular inspections of the sites confirmed the failure of 

reforestation in areas within Sta. Lourdes and Bacungan. In Tagburos, 

only about 51 hectares out of the total reforestation areas of 160.16 

hectares established in Cowrie Island thrive with current survival rate 

estimated at 50%. The condition of reforestation at the time of 

inspection is reflected in the following photos: 

Reforestation area – Sta. Lourdes 

Reforestation area – Bacungan 

54


Reforestation area – Cowrie Island 

Interviews with the POs disclosed that plantation in the reforestation 

area did not thrive despite employment of various strategies such as 

change of specie, potting, fencing, replanting undertaken to as much as 

four times and as recommended by the DENR. 

The POs claimed that the selected project areas may not be suitable for 

planting/reforestation due to the following: 

• Human destruction as the project area is a regular boat route besides 

being near the communities, susceptible to picking of sea shells; 

• Strong waves; and 

• Soil condition as the area is a former mining dump site. 

Total cost allocated for reforestation component of CSD contracts for 

Sta. Lourdes, Tagburos and Bacungan sites amounted to P2,236,642.17. 

• Inclusion of areas found to be unsuitable for planting and within the 

marine park, bird and fish sanctuaries at Palompon MRSP, Leyte 

which were eventually replaced by areas likewise not suitable. As a 

result, the survival rate attained during CSD implementation was not 

sustained. 

As a matter of procedure and in compliance with existing DENR 

regulations, the PO, with the assistance of the Assisting 

Organization/Subproject Site Management Office (AO/SUSIMO) and 

the DENR, prepares a CSD plan with accompanying cost 

requirements. This plan is basically lifted from the annual site 

development strategies prescribed in the approved appraisal report, 

subject to certain modifications or revisions as a result of validation 

conducted by the AO/SUSIMO. 

55


As defined in the Updated Appraisal Report for the project, the 

identified plantable mudflat areas is composed of 1,396.3 hectares 

located at the barangays of Cruz, Plaridel, Baguinbin and Cangcosme 

including areas surrounding the islands of Tabuk, Gumalac, and 

Cabgan, locally known as the Tres Marias Islets. 

Under Section 3 of DENR Administrative Order No. 96-29, the 

identification and selection of CBFM area should be jointly undertaken 

by the DENR and the concerned LGU in consultation with local 

communities. It should take into consideration the forestlands use plan 

to ensure that the CBFMP is consistent with the overall watershed 

conservation strategy and with the Municipality’s Land Use and 

Development Plan. The general procedures in selecting CBFMP areas 

follow: 

• Each CENRO and duly designated representatives of the concerned 

municipal government shall identify potential CBFMP areas with the 

aid of a Forestland Use Plan, latest available information and/or 

updated forest management map, and other baseline data. The 

CENRO and LGU representatives shall then validate the identified 

areas on the ground to determine their suitability. 

• The validated areas, endorsed by the concerned Legislative Councils 

of LGUs, shall then be indicated in a map of appropriate scale, which 

map, together with pertinent data and information, shall be forwarded 

through channels to the Regional Executive Director (RED) for 

approval. 

• The approved map and all other documents shall be furnished to the 

Director of the FMB, for data base management and monitoring 

purposes. 

• Upon approval of the CBFMP areas, the CENRO within fifteen days, 

shall inform in writing the concerned LGUs and together with the 

latter, shall conduct an information campaign to inform the public 

about the program. Copies of CBFMP guidelines and site map shall 

be posted in the municipality and barangays where the site is located. 

The CSD contract for this project was awarded to BAKHAW, Inc. on 

December 29, 2000 for a contract price of P20,216,000 covering the 

entire area of 1,396.3 hectares identified in the Updated Appraisal 

Report. The team was, however, not furnished with a copy of the map 

identifying the contracted areas to BAKHAW, Inc., despite repeated 

written and verbal request from concerned DENR personnel. The 

plantation establishment immediately started upon the issuance of the 

Notice to Proceed on February 22, 2001. 

56


The team noted that apparently, the suitable areas for planting were not 

accurately identified by DENR and LGUs. This was manifested in the 

PO’s request for reduction of the CSD’s contracted area due to the 

following: 

• Establishment of boat ways 10-meters width, existing canals with 

varying width of 20-400 meters, and non-plantable area (water 

logged) in almost all parcels; 

• The plantable area at Brgy. Duljugan is only 63 hectares and not 300 

hectares as projected, 70% of the entire mudflat is a coralline 

substrate. This is also true in the entire area of Barangay Cantuhaon 

with a projected area of 320. As described by the SUSIMO assigned 

in the project, coralline substrate areas are layers with coral formation 

one foot below the mud or sand mixed with mud. Mangroves thrive 

in these areas for only 1 to 3 years then die. 

• The people of Brgy. Cantuhaon rejected the development of the area 

as this is their fishing ground supporting their livelihood activities. 

• Included in the original project area of 1,396.3 hectares is about 222 

hectares at Tabuk Islet. Tabuk Island was declared as Marine Park, 

Fish and Bird Sanctuary under Municipal Ordinance No. 228-021095 

dated October 2, 1995, and development projects such as mangrove 

reforestation is not allowed within the area. The approximate area in 

Tabuk Islet was verbally provided by the SUSIMO presently assigned 

in the project area as the DENR failed to furnish the team with the 

maps depicting the 1,396.30 hectares originally projected and 

contracted to BAKHAW, Inc. 

In view of the PO’s requests and upon recommendation of the 

SUSIMO, CENRO and PENRO, a revised Work and Financial Plan 

was approved by the Acting RED reducing the total plantable area to 

only 850 hectares for a total contract cost of P13,811,619.60. After 

accomplishing the 850 hectares, a Revised Work and Financial Plan 

(RWFP) was prepared to meet the original target of 1,396.3 hectares. 

The team noted that the RWFP was approved without any justification 

and assessment report on the newly identified area of 546.30 hectares. 

The RWFP was prepared by the PO President with the assistance of 

EDCAI (the Assisting Organization) President and endorsed by the 

SUSIMO to the RED thru the CENRO and PENRO on July 8, 2002. 

Interviews with the PO officials revealed that the total area of 546.30 

hectares was identified by SUSIMO-DENR as replacement/expansion 

for the shortage in plantable area within the original projected project 

area. The Regional Office (RO) claimed that the RWFP was a result of 

57


a series of dialogue and that the areas were found suitable for planting 

based on the assessment of the RO – Research and Development 

Section (RDS). A copy of assessment report could not be furnished to 

the team. 

The identified replacement/expansion area included 296.30 hectares 

located within the Community Based Resource Management Program 

(CBRMP) implemented by the Local Government of Palompon, Leyte 

and 250 hectares located in Brgys. Cantuhaon and Duljugan. 

As reported in the Monitoring and Evaluation Report, the project 

attained a survival rate of 82.78% for the original area and 83.43% for 

the replacement area or an overall average of 82.77%. These 

accomplishments were within the acceptable level of 80% survival rate. 

As of February 17, 2006, however, the PO and the SUSIMO estimated 

that the survival rate went down to about 62% from 82.77% weighted 

average survival rate (WASR) attained upon project completion. The 

survival rate was computed as follows: 

Ref. No. 

per Map 

Location Per Brgy 

Boundaries 

No. of Hectares 

Planted Based on 

Progress Map of the 

SUSIMO 

Est. Number of 

Hectares Survived 

based On 

PO/SUSIMO’s Ocular 

Inspection 

Survival 

Rate (%) 

1 Cantandoy to Cambinoy 76.20 3 3.94 

2 Cambinoy to Cangcosme 350.10 163 46.56 

3 Cangcosme to Parilla 270.78 186 68.70 

4 Parilla to Cruz 255.30 180 70.50 

5 Cruz to Plaridel 272.78 248 90.91 

6 Plaridel to Duljugan 171.14 84 49.10 

Average Survival 

Rate 1,396.30 864 61.88 

The team observed the conduct of project assessment by the PO and 

the SUSIMO and noted that the reported survival rate of 49% within 

the stretch of Plaridel and Duljugan may not be considered realistic. 

The team’s assessment of survival rate within this stretch was only 

between 5-10%. Still, the Regional Office questioned the reported 

survival rate of about 62% adopted by the PO and SUSIMO. 

This is an indication that the identified areas were not suitable for 

replanting/reforestation. This view was shared by the PO itself, who 

claimed that the areas were not suitable for planting/reforestation due 

to the following: 

58


• Waves in the area is strong especially those facing seaward; 

• Destructive human activities such as fishing using sud-sud and 

tapsay; 

• Cases of illegal sand extraction. 

The project status as of inspection date can be readily assessed in these 

pictures: 

Cambinoy 

Cangcosme 

Parilla 

Cruz 

Plaridel 

Duljugan 

Cantohaon (in between Plaridel and Duljugan) 

59


It was further noted that at the CBFMP area, the survival rate of 

parcels near the existing forest plantation was higher, estimated to be 

90-95%, than those along the shore which was estimated to be only 

about 2 to 5%. 

Parcels within the CBRMP Area 

Parcels along the shores of CBRMP 

Despite existing condition at the time of inspection, the Regional Office 

still claimed that the areas are suitable for planting and that the low 

survival rates were due to the failure of the POs to maintain and protect the 

areas. 



Area profiling and appraisals are 

being conducted prior to the start of 

the project. 

However, there are also instances that 

instead of managing the forest 

resources alone, there are other 


The team agrees that appraisal was 

conducted before the start of the 

project. However, as discussed in the 

report, the same may not be 

considered adequate as areas with 

mineral deposits, existing claims, and 

unsuitable for reforestation were 

included as part of the contracted 

project area. Including areas such as 

these eventually resulted in low 

survival percentage in these areas. 

Gathering of data on mineral 

resources which could be secured 

from the MGB and the NAMRIA is 

one of the requirements in the conduct 

of appraisal. 

The team understands that 

management of mineral resources is 

also part of CBFMA. However, the 

60



resources like minerals found in the 

area which are being managed also but 

have not been included or part of the 

appraisal report. Issue like this is site 

specific and had already been 

discussed with the concerned offices 

of DENR and other stakeholders. 


area containing mineral resources 

should not have formed part of 

established plantation. As it is, the 

area, after having been planted, was 

nonetheless destroyed due to mining 

activities. 

2. Implementation of CBFM projects were either affected by non 

compliance with existing policies and procedures and designed 

feasibility studies or inadequate policies and procedures. These 

lapses consequently increased project cost and adversely affected 

the attainment of the desired survival rate. 

Evaluation of 4 projects revealed that the attainment of the projects’ 

objectives was either adversely affected by the failure of the POs and 

DENR to comply with the contracts, feasibility studies and existing policies 

or inadequacy of the same as discussed below: 

• The DMADAI was still awarded maintenance and protection 

contracts of the Dumayop Watershed Sub-project covering the period 

February 2004 to October 2004 when the CBFM agreement was 

already effective as of February 18, 2002. Under the CBFMA, the PO 

is obliged to maintain the plantation at its own expense. Moreover, 

the maintenance contracts were awarded despite apparent 

incapability of the DMADAI to comply with its previous agreement. 

During the implementation of Comprehensive Site Development (CSD) 

contract by DMADAI, a CBFM Agreement (CBFMA) covering 

3,708.5 hectares was perfected on February 18, 2002 awarding the 

project area to DMADAI. The CSD was implemented from June 1997 

to June 2003. 

Under the CBFMA, DMADAI is obliged to improve the status of the 

established plantations (reforestation, agroforestry, bamboo and rattan) 

within the CBFM area at its own expense within the standard plantation 

quality, two (2) years from the termination of the CSD contract or from 

July 2003 to June 2005. The failure of the PO to comply with this 

61


condition will be sufficient ground for the DENR to cancel the CBFMA 

and the PO to face civil or criminal liabilities. 

It was also stipulated in the CBFMA that the DMADAI is responsible 

for the protection of the entire forestlands within the CBFMA area 

against illegal logging and other unauthorized extraction of forest 

products, slash and burn agriculture (Kaingin), forest and grassland 

fires, and other forms of forest destruction, and assist the DENR in the 

prosecution of violators of forestry and environmental laws. 

This responsibility was, however, not properly discharged by 

DMADAI. Records maintained at the CENRO revealed that forest fires 

occurred within the DMADAI area from 1998 to 2004 damaging at 

least 423 hectares of the established plantation as tabulated below: 

Date 

Cause Estimated Area Damaged/Burned (has.) 

of Fire Description Location Area 

Estimated Cost of 

Damaged Area 

01-15-98 Ricefield Grassland Dumayop, Baretbet .25 Not stated 

cleaning Plantation 

46.00 

06-13-00 Not stated Gmelina and Tabban, Pogonsino, 67.5 P 786,204.56 

Acacia Bagabag 

06-20-00 Refo 

agroforestry 

Amballo South, Dumayop, 

Baretbet, Bagabag 

60.00 

8.00 

563,310.00 

22,936.00 

03-21-01 Dumayop, Baretbet 35.00 1,267,483.00 

05-15-01 Ant Egg Plantation Tawi-tawi-, Pogonsino 15.00 166,608.00 

05-23-01 collection forest Tabban, Pogonsino 2.30 25,415.00 

06-03-01 

Amballo, Baretbet 12.00 182,520.00 

12/ 02 to Personal PO Bunk house, Baretbet, Bagabag 

320,000.00 

03 01 grudge & Tools & eqpt. 

50,000.00 

Spite Gmelina plant’n 

2.4 14,034.24 

03-29 & 30- 

Pogonsino, Bagabag 318,839.70 

Kaingin 

2002 

04-07-02 Ant Egg 

Baretbet, Bagabag 16.5 218,707.34 

collection Gmelina 

02-17-03 Kaingin/ 

Combustible 

material 

plantation Diayon, Bonifacio, 

Quezon 

7.00 92,994.83 

03-20-03 

Kaingin 

Gmelina & 

Mango 

Plantation 

Amballo & Dumayop, 

Baretbet, Bagabag 

40.00 

2.00 

44,707.40 

03-13-04 Baretbet 28.00 303,239.72 

Gmelina 

03-17-04 

Tabban, Pogonsino 25.50 339,532.25 

Plantation 

Adjacent 

06-20-04 Kaingin Gmelina and Dumayop, Baretbet 55.98 930,867.07 

Agro 

Plantation 

Total 423.43 P2,248,888.31 

It may be noted from the above tabulation that forest fires were 

frequent in the Dumayop Watershed Subproject during the CSD 

62


implementation and after the awarding of the CBFMA damaging at 

least 423.43 hectares of the established plantation with damage cost 

estimated at P2,248,888.21. This manifests the PO’s incapability to 

protect the project from forest fires due, among others, from slash and 

burn agriculture or kaingin system and ant egg collection. 

Despite the PO’s apparent incapability to protect the project from forest 

fires, maintenance and protection contract costing P750,000 was still 

awarded to DMADAI on February 18, 2004. The maintenance contract 

should not have been awarded in the first place as the area is covered 

by a CBFMA. As discussed earlier, under the CBFMA, the PO is 

responsible in maintaining and protecting the area at its own expense 

after two years upon completion of CSD contract. 

As reflected in the Work and Financial Plan, the contracted activities 

were supposed to be undertaken from February to June 2004. 

Evaluation of the POs accomplishments from June to August 2004, 

however, revealed that several contracted activities were not undertaken 

as illustrated below: 

Activities Target Cost 

Accomplishments 

Physical / 

Amount 

Nursery Operation– 303,120 

seedling production seedlings 

Plantation Protection 

& maintenance 

Banana sucker 1,200 24,000.00 1,200/ 

P24,000 

P227,340.00 0 Due to long drought 

Fireline maintenance 407 172,975.00 0 

Patrol works 1,263 285,564.30 2,037.02 / 

P249,939.50 

Remarks 

Delayed implementation. Implemented 

from July to August 2004 only. 

Fire occurred on the following dates 

caused by adjacent kaingin damaging 

Gmelina Plantation at site: 

Proj. Mngt Cost 1,710 40,000.00 0 

Total 

P749,879.30 P301,517.44 

Date Site Value 

3/13/04 Dumayop P 303,239.72 

3/17/04 Tabban 339,532.25 

6/20/04 Dumayop & 930,867.07 

Baretet 

Total 

P1,573,639.04 

Despite the PO’s delay and failure to accomplish some activities under 

this contract, the contract was still extended until December 30, 2004 

with additional funding of P448,325 to cover additional activities. The 

implementation of additional activities which were supposed to be 

completed by December 2004 was also delayed as tabulated in the next 

page: 

63


Activities Target Cost 

Accomplishment 

Physical/ 

Amount 

Remarks 

Replanting 

Oct. –Dec. , 2004 

Procurement of seedlings (bare root) P50,000 

Replanting 50,000 P 50,000 50,000 

Establishment of greenbelt 

Procurement of banana suckers 4,000 100,000 100,000 

Planting of suckers 4,000 20,000 20,000 

Fireline establishment 

Jan. – Mar. 2005 

Amballo 114 has. 48,450 48,450 

Dumayop 27 has. 11,475 0 

Diffuncian 10 has. 4,250 0 

Sinalang 62 has. 26,350 26,350 

Tabban 0 0 15,725 

Foot Patrol 489 days 97,800 97,800 

PMS 40,000 40,000 Oct. 2004-Mar..2005 

Total P448,325 P 448,325 

During site visits by the team in November and December 2005, 

kaingin is still being practiced and continues to be a threat to the 

established plantation as shown in these pictures: 

Kaingin at Sitio Sinalang, Bonifacio, Quezon, Nueva Vizcaya 

Charcoal-making at Sitio Sinalang 

Kaingin at Sitio Dumayop 

Kaingin at Sitio Burburnai 

64


• The CSD implementation of the PWRS was not in accordance with 

the land use plan defined in the Feasibility Study resulting in 

increased estimated soil erosion from 303,455.92 tons/year to 

390,898.39 tons/year. Moreover, inappropriate upland cultivation 

which promotes soil erosion is widely practiced. 

As disclosed in the following documents, PWRS project was designed 

to prevent soil erosion as the site and watershed areas are generally 

susceptible to soil erosion: 

Document 

Paragraphs 52,176,181 

and 182 of Bukidnon 

Watershed Management 

Plan Framework 

(BWMPF). 

PWRS Feasibility 

Study/ Appraisal Report 

DAO 98-41 dealt with 

objectives and strategies 

to address soil erosion in 

watershed reservation 

Provision 

Soil erosion poses a serious threat to most of the present and 

potential agricultural areas of the Province. Almost 110,000 ha 

(13%) is already classified as moderately to severely eroded. Despite 

the very serious threat soil erosion poses xxx it is not given adequate 

attention. xxx As such, there is a need to promote indigenous and 

introduced soil and water conservation technologies to combat the 

linked problem of rainfall runoff/soil erosion. xxx 

• The subproject aims to rehabilitate the watershed’s vegetative cover, 

minimize soil erosion losses and improve the water yield and quality 

of tributaries and major waterway of Pulangi and Tigua Rivers. 

• Specifically, the subproject aims, among others, to introduce proper 

farming techniques to minimize soil erosion. 

• Estimated average loss of soil is placed at 80.55 tons/ha/year, 

however, with the implementation of the subproject, the soil loss will 

reduce to 51.62 tons/ha/year or a 36% reduction. 

• Section 2.1 – Enhance the conservation, protection and 

rehabilitation of watershed reservations to reduce soil erosion and 

sedimentation, improve water yield and quality and promote 

biological diversity. 

• Section 4.1.4 – Promotion of land uses and practices that increase 

productivity and conserve soil, water and other forest resources. 

Thus, under the feasibility study (FS) for PWRS, agro-forestry and 

other farming activities shall be confined only in moderate slopes to 

prevent and minimize occurrence of soil erosion. It was proposed that 

the PWRS development be undertaken as follows: 

SLOPE CATEGORY (%) 

LAND USE 0-15 15-30 30-50 Above 50 TOTAL % 

Reforestation 48.10 645.12 851.46 348.87 1893.55 32.29 

ANR 6.00 481.42 150.09 25.03 662.54 11.30 

Rattan Plantation 101.96 475.26 149.94 57.01 784.17 13.37 

Agroforestry 600.00 800.00 600.00 200.00 2200.00 37.52 

Agro-silvipastoral 76.96 90.94 92.05 23.46 283.41 4.83 

Bamboo Plantation 17.57 14.31 4.69 3.25 39.82 0.68 

TOTAL 850.59 2507.05 1848.23 657.62 5863.49 100.00 

65


Actual development of the area as reflected in the Terminal Report of 

the POs, however, revealed that the land use plan was not strictly 

followed as illustrated below: 

Land Use 

Development 

Plan 

CSD Accomplishment 

Variance Pictures 

Reforestation 1,893.55 1,894.00 - 

ANR 662.54 140.00 (522.54) 

Rattan 

Plantation 

784.17 914.00 129.83 

Agro-forestry 2,200.00 1,496.61 800 has. 

excluded 

in CSD 

allotted 

to cash 

crops 

Agrosilvipastural 

283.41 500.11 216.70 

Bamboo 

Plantation 

39.82 151.00 111.18 

Totals 5,863.49 5,095.72 (767.77) 

It may be noted that the POs converted the ANR into agro-silvipastural 

and bamboo plantations as these, unlike ANR, could eventually be 

harvested and utilized by the POs. The conversion of land use, 

however, affected the project objective of restoring/establishing at least 

66


2,500 hectares of land as permanent forest cover. Furthermore, in view 

of deviation per land use plan, the estimated soil erosion increased from 

303,455.92 tons/year to 390,898.39 tons/year as computed below: 

LAND USE 

AREA 

AVERAGE 

EROSION 

TOTAL EROSION 

(tons/year) 

Reforestation 

Production Forest 1,545.00 32.50 50,212.99 

Protection Forest 349.00 83.9 29,281.11 

---------------- ------------------- 

Total 1,894.00 79,494.10 

ANR 140.00 7.72 1,080.80 

Rattan Plantation 914.00 7.72 7,056.08 

Agro-forestry 2,296.61 108.02 248,079.81 

Agro-silvipastoral 500.11 108.02 54,021.88 

Bamboo 151.00 7.72 1,165.72 

TOTAL 390,898.39 

The CENRO–Malaybalay claimed that this action was supported with 

PO resolutions and that claimants, despite slope category, prefer agroforestry 

component than any other component since they could still 

utilize vacant spaces for root crops or seasonal crops to sustain their 

livelihood. They also claimed that POs were encouraged to implement 

Natural Vegetative Strips (NVS) in agro-forestry component as one of 

the mitigating measures from soil erosion. 

The team understands that the DENR has also to consider the demands 

of the POs. However, such actions should not be to the extent of 

sacrificing the very objective of the project. 

Under the DENR’s Primer on Soil and Water Conservation (SWC), the 

ways of controlling soil erosions include cultural, physical and 

biological methods while the factors promoting soil erosion are: 

• Kaingin farming 

• One-crop system 

• Kind of farming 

• Intensity of rainfall 

• Slope steepness and length 

• Soil erodibility 

Ocular inspections of CBFMA areas disclosed that inappropriate 

upland cultivation is widely practiced regardless of slope gradient and 

that even newly planted trees were cut allegedly to give way to upland 

farming as shown in the following pictures: 

67


CEDAMCO- CBFMA area 

OSA – CBFMA area 

SAHA-CBFMA area 

PAGTUKAS-CBFMA area 

Slash and burn farming at CBFMA 

area of OSA 

Gmelina trees were cut allegedly to give 

way to corn plantation 

Moreover, ridge tops and slopes exceeding 50% were not spared from 

the practice. As mentioned in the feasibility study, PWRS area is 

susceptible to soil erosion, which if aggravated by inappropriate 

farming may cause disaster to the community. 

CENRO-Malaybalay agrees that for sustainability, SWC practices 

should be part of management practices. 

• Absence of policy on the maximum area to be awarded to a PO 

resulted in the awarding of a relatively large area to a PO which 

could hardly maintain, sustain and manage such an area. 

68


In Dumayop Watershed Subproject, a CBFMA covering 3,780.056 

hectares was awarded to DMADAI on March 18, 2002. This is the 

same PO that implemented the CSD from July 3, 1997 to March 2002. 

The Chief, CBFM Unit, however, did not endorse the issuance of 

CBFMA to DMADAI due to: 

• Although the CSD implementation was substantially funded from establishment 

to protection and maintenance, the DMADAI experienced difficulty in carrying 

out this responsibility. 

• The DENR does not have enough competent people to be assigned in the 

communities to assist the single CBFMA holder who is tasked to manage a vast 

and sporadic tract of land. 

• The geographical attributes of the proposed CBFMA do not guarantee effective 

management by a single and wavering local entity; 

• The PO has not yet reached the ideal maturity to handle such big responsibility 

and accountability despite the very long and expensive empowerment processes 

it has gone through; 

• The PO president is not open to criticism for improvement particularly on 

handling finances of the projects; 

• The declining participation of the small number of participating community 

members as project implementation progresses. 

He then recommended that each sitio should have individual CBFMA 

and that a sweeping change in the leadership of the PO Federation be 

undertaken. Despite such observations and recommendation, a CBFMA 

dated February 22, 2002 covering the entire area of 3,780.056 hectares 

was awarded to DMADAI. 

The awarding of the entire area to one PO may have been due to the 

absence of policy defining the standard area that can be effectively 

managed and sustained by a PO taking into consideration the project 

location, POs membership and level of management skills. It was 

noted that the need to consider the number, capabilities and availability 

of field implementer in awarding the project area was already 

recognized in the handbook on community profiling for people-oriented 

forestry projects. However, the methods and criteria for setting the 

project limit that can be effectively and sustainably managed by a 

household/PO member under a given condition were not defined. 

As observed, the capability of the DMADAI to manage the entire area 

was indeed questionable. It failed to sustain the 59.34% average 

survival rate attained upon CSD termination. Inspection by the team in 

November and December 2005 revealed that the survival rate went 

down to about 35%, as presented in the next page: 

69


Component 

CSD Area 

(has.) 

Inspected 

Area 

WASR 

(Density) 

Reforestation 1,263.98 851.26 .352 

Agroforest 116.25 16.97 .405 

Rattan 320.00 11.65 .200 

Bamboo 10.00 10.00 0 

Total 1,710.23 889.88 .347 

The 59.34% rate was even reported to have increased to 61% as of 

September 2004 due to maintenance activities undertaken per contract 

dated February 18, 2004 involving patrol works, fireline establishment 

and maintenance and replantation activities. 

Other observations noted by the team during inspection manifesting 

DMADAI’s incapability to manage follow: 

• the presence of kaingin and charcoal making activities, thick and tall 

grasses within and adjacent to CBFM areas, absence of suppression 

plan and fire protection measures such as foot trail, graded trail and 

fireline in most CSD areas and unreplaced broken look out towers; 

and 

• the expected height of the trees upon reaching certain age was not 

attained as tabulated below: 

Year/ 

Age Location (Parcel Code) Has. 

Reforestation 

2001/4 Burburnai – 1 

Per 

Ocular 

inspection 

Height (m ) 

Prescribed 

Height Per 

ERDB 

Remarks 

47.12 3-5 4.2-11.9 Stunted 

growth, thick 

grasses 

underneath 

reforestation 

1999/6 Sinalang- 1 

reforestation 

1999/6 Diffuncian – 1 

148.21 4-6 8.6-15.2 Dominated 

by thick 

cogon/ 

talahib, no 

fireline 

established 

10.73 4-6 8.6-15.2 Dominated 

by thick 

cogon/runo, 

traces of 

kaingin 

reforestation 

70


Year/ 


1999/6 

Height (m ) 

Prescribed 

Height Per 

ERDB 

rattan 

1997/8 Dumayop (2) 78.86 5-7 9.3 - 18.4 Thick 

1997/8 

1997/8 

reforestation 

Remarks 

Per 

Ocular 

inspection 

11.65 2-3 8.6 – 15.2 Stunted 

growth, most 

shoots cut 

and utilized 

for food 

consumption 

grasses 

underneath, 

no replanting 

done 

51.47 5-7 9.3 - 18.4 Stunted 

growth, thick 

grasses 

underneath 

10.00 - 9.3 – 18.4 No traces of 

bamboos 

found, 

allegedly 

eroded by 

flood. 

bamboo 

1997 (8) Amballo (2) 150.63 5-6 9.3 - 18.4 Stunted 

growth, no 

visible 

fireline, 

some blocks 

have no 

plants 

1997/8 74.99 6-8 9.3 - 18.4 Thick 

1997/8 

36.41 6-8 9.3 - 8.4 grasses 

underneath, 

reforestation 

no fireline 

visible. 

2001/4 Amballo (2) 7.64 2.5 4.2 – 11.9 Dominated 

by thick 

grasses and 

trees were 

surrounded 

by vines 

agro-forest 

1997/8 Tabban (3) 

9.33 4-5 9.3 – 18.4 Dominated 

by thick 

grasses and 

trees were 

surrounded 

by vines 

agro-forest 

71


Year/ 


Per 

Ocular 

inspection 

Height (m ) 

Prescribed 

Height Per 

ERDB 

1997/8 

Tabban (3) 154.33 3-4 9.3 - 18.4 

1999/6 

reforestation 

8.6 - 15.2 

2001/4 27.4 2.-2 4.2 - 11.9 

Remarks 

Stunted 

growth, thick 

grasses 

underneath 

1999/6 

71.07 5-7 8.6 - 15.2 Dominated 

Tawi-tawi (3) 

by cogon 

reforestation 

underneath 

Total CSD area inspected 889.88 


Provided by CENRO-Bayombong 

Under DENR Administrative Order 

#2004-29 Section 6, entitled 

Incentives of the POs, letters E and F 

states that: 

E. To be given preferential access by 

the DENR to all available assistance 

in the development and 

implementation of the CRMF, RUP & 

AWP and; 

F. To enter into agreements or 

contract with government entities; 

provided, that existing COA 

regulations and pertinent guidelines 

are adhered to. 

The Office believed that the awarding 

of contract in the protection and 

maintenance of the established 

plantation was an assistance given by 

the DENR to the P.O. Moreso, this 

also gave the P.O. members 

alternative livelihood which is one of 

the basic policy of CBFMP. Please be 

informed further that the cost of 

contract was not a regular fund of the 

CENRO Office but a funding 

assistance allotted directly to the P.O. 

by the NFDO (National Forestation 

and Development Office, Manila). 


The team recognized that one of the 

benefits under CBFM is preferential 

access by the POs to all available 

assistance in the development and 

implementation of the CRMF, RUP 

and AWP. However, such assistance 

should be extended in the light of the 

provisions of the CBFMA. It was 

noted that under the CBFMA, the 

POs were responsible for maintaining 

and protecting the CBFM area at 

their own expense. Moreover, despite 

apparent incapability of the PO to 

implement previously awarded 

contracts, new contracts were 

awarded which were likewise not 

effectively implemented. 

72



Provided by RED - Region 10 

The big increase in estimated soil 

erosion from 303,455.92 MT/Yr. to 

470,310.89 MT/yr. was due to the 

computation using the average erosion 

rate and not based on slope category. 

For reforestation alone, the whole area 

of 1,894.0 hectares was computed 

using 83.90 MT/Ha/yr. (erosion rate 

of reforestation area with slope 51% 

and above). If we compute based on 

slope category, the estimated soil 

erosion for reforestation is only 

79,494.10 MT/yr. and not 158,906.60 

MT/yr. The conversion of 522.54 

hectares ANR to other components 

had caused only a minimal increase in 

soil erosion affecting agroforestry and 

agro-silvipastoral components. 


The team considered the 

management’s representations on the 

computation of average erosion rate. 

Hence, the original computation of 

470,310.89 MT/year was reduced to 

390,898.39 MT/year. This volume is 

nonetheless still significant 

considering the present condition of 

our forests. 


The audit observation is an issue of 

what is ideal and practical base on 

actual on site situation. The feasibility 

study with all its scientific inputs and 

the ideal envision conditions to make 

it more attractive, may not necessarily 

always be the best option during 

project implementation, but in some 

cases a mere framework of action 

plan. 

The proposed ANR areas for example 

was interpreted by the actual 

occupants and the land claimant as a 

way of driving them out from their 

ancestral areas, as this will become a 

permanent forest. Thus, no more 

economic activities is being allowed. 

The team agrees that feasibility study 

may just be a mere framework of 

action plan in some cases. However, 

such framework should be seriously 

considered as this is a result of rigid 

studies. Thus, deviations from such 

framework should only be undertaken 

if the same is found to be beneficial to 

the project. In this case, the very 

objective of the project of restoring 

2,500 hectares of land as permanent 

forest cover and minimize soil erosion 

was compromised. 

This should have been considered in 

the preparation of feasibility study. It 

maybe noted that out of the proposed 

development plan of 5,863.49 has., 

only 2,556.09 or 43.59% was 

proposed as permanent cover. 

73



For the upland people, land is life and 

therefore seldom they compromise if 

we tend to deprive them of their 

traditional land use. The win-win 

solution therefore, is for them to plant 

permanent crops with economic value 

for survival. In this case, we still have 

permanent forest and at the same time 

addressed their survival. The increase 

in soil erosion should not be 

interpreted as a negative impact and a 

long term scenario. This condition 

will usually occur in the site 

development stage where soil tillage is 

inevitable, but the moment permanent 

crops get establish on the ground and 

effectively sustained local economic 

activities, slope stabilization is a long 

term scenario. Unless we will be 

more sensitive to their culture and 

survival, then there will be less fire 

occurrences in our natural forest. 

Kaingin farming is considered as one 

of the practices promoting soil 

erosion, but it is widely practiced in 

the CBFMA (PWRS) area. Traditional 

farming system is regarded worldwide 

as sustainable farming system due to 

their unique way of preserving their 

fertile soil. Research showed that one 

of these practices is the so called 

FALLOW method. This is method 

allows planting area to rest for five (5) 

years or more and thereafter cleared 

again. In the case of the OSA CBFMA 

where soil are fertile, most of the fast 

growing native species already attain 

the height and diameter which when 

cut for the follow period can already 

be construed as kaingin. While we do 

not advocate this practice of cutting 

miscellaneous trees, but there is a 

difficulty in transforming their 

practices overnight. This can be 


The kaingin noted by the team could 

not be that of Fallow Method as the 

trees cut off were the newly 

established plantation under the CSD 

contract and not the fast growing 

native species that have attained the 

required height and diameter. 

74



equated as transforming Islam to 

Christian. During the audit period, 

what is seemingly evident is the 

clearing for Fallow of approximately 

three hectares area which is equivalent 

to 0.17 percent of the total CBFMA 

area of OSA. Kaingin making as 

widely practice in the CBFMA areas 

as mention in the audit observation 

may no longer be appropriate at this 

point in time. This is so considering 

that the natural residual forest lift is 

only 4.4 percent of the total area, and 

these are already located within more 

than 50 percent slope. Farming in 

these areas is already in misery. What 

is widely practiced however is the 

Fallow method. 


Momentarily, non-participation by 

some members of the community may 

still be an issue but these are 

temporary in nature. 

3. Inadequate coordination with other government agencies resulted 

in the granting of mining permit within the CBFM area to another 

PO and improper maintenance of infrastructure projects turnedover 

to LGUs. 

In order to establish institutional linkages, the DENR shall work with local 

governments, other government agencies, people’s organizations, nongovernment 

organizations, tribal councils, and other concerned 

organizations to ensure that communities are empowered to initiate and 

achieve the objectives of CBFMP. The DENR shall promote and support 

the active participation of the agencies and organizations and shall assist 

them in enhancing their capacities to actively participate in and support the 

program. 

The team, however, noted that apparently, DENR failed to establish proper 

institutional linkages as discussed in the next page: 

75


• A mining permit for the extraction of manganese within the DWSP area 

was issued on December 9, 2004 by the Provincial Government of Nueva 

Vizcaya to a PO other than the one awarded the CBFMA. As provided in 

the CBFMA, the holder has the right to be given priority in obtaining 

privilege to extract and dispose any mineral resources found within the 

CBFMA area, subject to existing laws, rules and regulations. 

The Provincial Government, under RA 7076, is vested with the right to 

grant small-scale mining permit. The mining permit was granted without 

Environmental Clearance Certificate (ECC) required to be secured and 

presented by the applicant. The ECC was eventually issued by the 

Environmental Management Bureau (EMB), Regional Office No. 2 to 

KMAI on December 22, 2004. 

Apparently, the Provincial Government of Nueva Vizcaya and the 

officials of the Municipalities of Bagabag and Quezon were not properly 

informed by PENRO of the existing CBFMA. Thus, the Provincial 

Government of Nueva Vizcaya issued mining permit to a PO other than 

the CBFMA holder. 

Pursuant to DENR Administrative Order No. 99-29 dated July 23, 1999, 

the DENR should provide the concerned LGUs and other government 

agencies copies of the CBFMA, CRMF, AWPs and RUPs for their 

reference in assisting the DENR and concerned PO in the implementation 

of the CBFM Program. 

Likewise, the EMB was not properly informed and was not among those 

required to be informed or be furnished with CBFMA and other related 

documents. 

The issuance of the mining permit to another PO resulted in conflict 

between the two POs and loss of trust by the beneficiaries on the project. 

• The DENR’s lack of coordination with LGUs was also manifested in the 

absence of maintenance in two (2) infrastructure projects turned-over to 

LGUs. 

At the PMRSP, inspection conducted by the team on February 9, 2006, 

revealed that of the three projects turned over to the LGUs, one was not 

properly maintained resulting in roadway scouring as depicted in the 

pictures shown below. 

• Not properly maintained, 

specifically, the portion near 

Cangcosme 

San Pedro-Cangcosme (lower portion) 

76


San Pedro-Cangcosme (upper portion) 

• Presence of grasses within the 

drainage canal 

• Eroded soil deposited to the 

drainage canal, hence run off 

water flows directly in the 

roadway resulting in scouring. 

It was provided in the MOA dated July 29, 2003 between the DENR and 

the Municipality of Palompon that the DENR shall, from time to time, 

inspect the conditions of the structure turned over to the LGU to ensure 

regular maintenance. Apparently, this was not undertaken by the DENR as 

the turned over roads were not properly maintained. The DENR could not 

also provide the team with monitoring reports. 

This is also true in the case of PENRO-Palawan wherein both Kamuning 

and Tagburos Causeways turned unstable due to erosions at the sides of 

the structures caused by movements of primary and secondary rocks. The 

movement of rocks in Tagburos was caused by sandbagging between 

primary and secondary rocks, which was approved by the DENR while 

that in Kamuning can be attributed to strong waves. 

The foregoing defects, if not rectified, will impair the stability of the 

structure as movement of primary stones will create voids between rocks 

and erosion of slope protection. The destruction of the structure will affect 

economic activity in the area. 

It was also noted that accumulated debris and sands on top of the 

causeway pavement in Kamuning were left unattended. 

Eroded portion of causeway in 

Kamuning 

Accumulated debris and sand at the 

top of the causeway in Kamuning 

77




Regarding the coordination with 

other government agencies which is 

perceived to be inadequate, the 

DENR has started working together 

with other government agencies like 

the Department of Agriculture, and 

the Department of Agrarian Reform 

to address rural development efforts 

of the government. This Convergence 

towards Sustainable Rural 

Development was formalized thru a 

Joint Memorandum Circular No. 01 

series of 1999 signed by the three 

Secretaries and approved by then 

President Joseph Estrada. The 

Convergence initiative provides 

assistance to the CBFM communities. 

In addition, we have our partnership 

with the Local Government Units 

(LGUs) to implement CBFM thru the 

issuance of a Joint memorandum 

Circular signed by DENR and DILG 

and witnessed by the different 

Leagues of LGUs in 2003 and as 

early as 1998. Not only do we have 

this partnership with the LGUs, but in 

some projects, we have their direct 

involvement in upland development 

thru the co-management concept. 

While these initiatives have already 

started, there is still a long way to go 

in order to realize our common 

objective of rural and upland 

development. We hope that these 

concerns will be considered in the 

audit report. 

Provided by CENRO - 

Bayombong 

The awarding ceremony of the CBFM 

Agreement to the DMADAI by the 

DENR last February 22, 2002 as per 


The team acknowledged the existence 

of various memoranda identifying the 

roles and needed coordination 

between and among various CBFM 

stakeholders. However, as disclosed 

in the report, the supposed 

coordination was wanting as different 

stakeholders have different policies 

which at times are contradictory. 

It would appear then that the existing 

linkages among the different 

implementing agencies is not yet 

enough to ensure adoption of common 

policies. As discussed in the report, 

the Provincial Government of Nueva 

Vizcaya issued permit to a PO other 

than the PO granted by the DENR 

with CBFMA. 

The mining permit was issued by the 

Provincial Government and not by the 

Municipal Government, where 

78



record was attended by personnel 

from the Mayor’s Office of the 

Municipality of Bagabag in the 

persons of Mr. Colcol and Mr. Nivial, 

SB Kagawad Revelita L. Jallorina and 

the Barangay Council of Baretbet, 

Bagabag headed by its Barangay 

Captain, Honorable Julie Santiago. 

The LGU representatives from 

Municipality of Quezon were not able 

to attend, however, CENRO 

Bayombong and members of the P.O. 

conducted constant coordination with 

them regarding the CBFM Project. 

Although our CENRO Office failed to 

furnish the Provincial Government a 

copy of the CBFMA awarded to the 

DMADAI the Office had a regular 

coordination with the ENRO which is 

under the Office of the Provincial 

Governor. Please take note also that 

the CBFMA had been notarized by 

Atty. Jose V. Gambito now the Vice- 

Governor of the Province. 

The mining issue started when this 

Office received a resolution from the 

P.O. embodying a petition for the 

discontinuance of the mining 

operation of the KMAI within their 

CBFMA area at Sitio Burburnay, 

Bonifacio, Quezon, Nueva Vizcaya…. 

The Office issued Memo in the 

conduct of investigation and found out 

that the Provincial Government issued 

to Kablaaw Manganese Association, 

Inc. (KMAI), an organization with no 

records in the Office, a special permit 

to haul/dispose manganese ore at 

Burburnay, Bonifacio, Quezon, Nueva 

Vizcaya and valid from December 9, 

2004 to February 6, 2005…. Result of 

Investigation . 


representatives were alledgedly 

present during CBFM Agreement 

awarding ceremony. Besides, mere 

presence in the ceremony would not 

provide adequate information on the 

privileges and responsibilites of both 

parties including the scope and 

coverage of the Agreement. 

The extent of alleged coordination 

between CENRO and ENRO was not 

disclosed in the comments. Moreover, 

the issuance of the mining permit by 

the Provincial Government to a PO 

other than the CBFMA holder is a 

manifestation of inadequate, if not 

total absence of coordination. 

It would appear then that the issuance 

of CBFMA is not an assurance that 

the POs would have the sole right over 

the area. This only manifests that 

CBFMA could not be enforced 

without the support and coordination 

of the concerned LGUs. 

79



From January 5 to February 20, 2005 

series of meetings, dialogues, 

legislative inquiries participated in by 

the LGUs (Barangay, Municipal, 

Provincial), DENR, NGOs, Religious 

Sectors, Communities affected have 

been conducted to discuss the issue. 

As a result of these actions, a letterdated 

January 24, 2005 of the 

Provincial Governor to Mr. Erickson 

Alvarez, the permittee furnished to our 

Office was issued advising him 

(Alvarez) to stop his operation 

pending the submission of Necessary 

requirements and resolution of current 

issues and concerns. 


On March 25, 2005, our P.O. 

(DMADAI) reported that KMAI has 

secured their mining operation within 

their CBFMA area. The Office 

immediately sent a letter to the 

Provincial Governor inquiring if there 

was a new permit issued to KMAI by 

her Office. 

Despite of all efforts exerted to 

resolve the problem it was found out 

that another permit dated February 21, 

2005 was again issued to KMAI to 

extract/remove and dispose/transport 

100,000 metric tons per year from 

February 21, 2005 to February 20, 

2007. 

With regards to the issuance of the 

ECC by the EMB Regional Office, 

based on the EIA report made by the 

Provincial Environment Office (PEO) 

of Nueva Vizcaya, it was indicated 

therein that the area applied for 

mining is within the CBFMA area 

awarded to DMADAI, hence, EMB 

Regional Office was aware of the 

status of the area applied by the 

It would appear then that even offices 

under the DENR were not enforcing 

the CBFMA as the ECC was 

nonetheless issued even if the subject 

area was already covered by a 

CBFMA. 

80



KMAI prior to the issuance of the 

ECC. 

But despite these facts, the PLGU 

issued the Small Scale Mining Permit 

disregarding the proper process such 

as securing first area clearance from 

the DENR and proper consultation 

with the affected stakeholders and 

others, as a requirement before issuing 

the Small Scale Mining Permit. This 

issue was later cleared after the 

issuance by DENR-USEC Ramon JP. 

Paje of the Environment and Forestry 

of Memo dated April 17, 2006 in 

response to the query of the CENRO. 


This only manifests that the principles 

and objectives of CBFMA were not 

totally embraced by the LGUs. 

81

Chapter 3 

Adequate Monitoring Activities 

82

ADEQUATE MONITORING ACTIVITIES 

INTRODUCTION 

Effective management of any program or organization requires periodic 

monitoring and evaluation to ensure achievement of predetermined goals and 

objectives. 

Monitoring is defined as the continuous periodic surveillance (oversight, 

review) over the implementation of an activity (and its various components) to 

ensure that input deliveries, work schedules, targeted outputs and other required 

actions are proceeding as planned. It includes the regular tracking of activities 

through reports of the implementation process. 

On the other hand, evaluation is defined as the process, which attempts to 

determine as systematically and objectively as possible, the relevance, 

effectiveness and impact of activities in the light of their objectives. It aims to 

examine reports and performances to verify the achievement of the stated 

objectives and identify reasons for delays or inability of the program to attain 

the same. 

The audit, however, disclosed that the monitoring and reporting mechanism by 

DENR is inadequate. The actual physical status of the CBFM project and the 

infrastructure projects were not captured in the reports. Likewise, the database 

maintained by PENRO and CENROs in the province of Bukidnon could not 

also be considered adequate for evaluation purposes. 

OBSERVATIONS 

1. The monitoring and evaluation processes adopted by the DENR are 

not yet adequate to ensure sufficient information in assessing the 

attainment of the CBFM objectives. The reports did not capture the 

extent of implementation of the PO’s CRMF and AWP and identify 

causes of deficiencies in the attainment of the project’s objective. 

Likewise, the database maintained by CENROs and PENROs were 

also inadequate to be used as basis for decision making. 

To assess the progress of a project or an activity, a monitoring mechanism 

should be in place. The monitoring mechanisms or activities should ensure 

83


that all relevant issues and concerns affecting the attainment of the project 

goals and objectives are captured. 

Realizing the importance of a monitoring mechanism, the DENR issued the 

following guidelines dealing on this subject: 

Guidelines Particulars Responsible Office/s 

MC 98-10 Test implementation of Project Impact 

Monitoring and Evaluation System (PIMES) as 

M&E for CBFMP 

Sec. 3.6 of Monitoring of implementation of CRMF/AWP 

DAO 98-41 of CBFM projects within watershed areas 

DAO 99-38 Standard Operating Procedures for Performance 

Monitoring of all programs/projects outputs 

MC 2001-04 

based on identified Key Result Areas (KRAs) 

Guidelines prescribing the conduct of physical 

validation of POs’ accomplishment on CSD 

activities and their institutional development. 

MC 2001-07 Use of Progress Report Form in monitoring FSP SUSIMO 

Sec. 30 of DAO 

2004-29 

Annual participatory mode of M&E through 

composite team based on critical activities to 

assess various issues, problems and constraints 

in relation to the development and 

strengthening of the CBFM implementation 

RTD for Forestry, 

RENRO, PENRO, 

CENRO 

CENRO, PASu, LGU, 

PAWB 

Sectoral bureau, 

RENRO, PENRO, 

CENRO 

Contracted NGO 

RENRO, PENRO, 

CENRO, LGU, 

AO/NGO 

Review of the monitoring activities adopted by the DENR offices in the 

provinces visited by the team, however, revealed that the information 

reported were not adequate to assess the attainment of the CBFM objective 

and extent of implementation by the POs of the CRMF and AWP. The 

lapses are evident in the following instances: 

Province 

Bukidnon 

Deficiency in Monitoring Activities 

Both PENRO and CENROs submit Accomplishment Reports for CYs 2003 and 

2004 as required under DAO 99-38. The CENROs’ accomplishments are supported 

with CBFM Assessment Tool Forms prepared by CBFM coordinator. The 

information reported was gathered through interviews of PO officers. In some 

cases, M & E report were extracted from the Assessment Tool. 

The team, however, noted that a number of Assessment Tool Forms were hardly 

filled-up and the covering M & E reports were inadequate to assess the attainment 

of the CBFM objective as illustrated below: 

• The analysis in the M & E Reports were not clearly linked to the objectives of 

the activities being evaluated and did not indicate whether such objective 

supports the attainment of the CBFMP goal; 

• Several recommendations were being offered without identifying the causes of 

deficiencies and/ or conditions that should be remedied or corrected; and 

• Responsible officials and time-frame for taking actions were not established. 

The reports submitted to the team indicating the status of identified milestones 

were not also evaluated and assessed in line with the attainment of CBFM goals 

and objectives and to identify issues and concerns that needs immediate 

84


Province 

Leyte 

Palawan 


actions. This may have been due to inadequate training of DENR personnel tasked 

to conduct monitoring, evaluation and reporting of CBFM activites. 

Inappropriate data gathered and inaccurate reports may result in inappropriate 

decision. 

It was also noted that the database being maintained by PENRO and CENROs were 

not adequate as it does not capture a number of information needed to assess the 

CBFM objective. The information not included in the database follow: 

• Number of Households 

• Fund Source 

• Existing and planned protection forest 

• Developed and existing Second Growth or Residual Forest 

• Existing and planned agro forest areas 

• Existing Open/Grasslands/Brushlands 

• No. of hectares per slope category 

The PENRO report also reflected that 94 out of 145 POs do not have affirmed 

CRMFs. This only indicates that the POs’ plan for managing the CBFM area was 

not yet defined. It must be noted that Section 18 of DAO 2004-29 provides that 

CRMF shall be prepared within 30 days upon approval of CBFMA. The affected 

CBFMAs were approved and issued from 1999 to 2004, manifesting that the 

prescribed period has long expired. 

Verification of available reports filed with the CENRO revealed that aside from the 

annual report based on KRA, there are no other reports prepared after the CSD 

implementation. Interviews disclosed that monthly accomplishment reports were 

prepared only during project implementation to support the billing in compliance 

with the requirements under MC 2001-04 and 2001-07. All other monitoring and 

evaluation activities required under MC No. 98-10, DAO No. 98-41, and DAO 

2004-29 are yet to be conducted. In effect then, the DENR has yet to evaluate and 

report the physical status of the projects and assess the level of performance of 

CBFMA holders in terms of its compliance with the approved Annual Work Plan 

(AWP) and Community Resource Management Framework (CRMF). 

The DENR offices (PENRO and CENROs) submitted accomplishment reports 

covering CYs 2003 and 2004 and monthly progress report in compliance with 

DAO 99-38 and MC 2001-07. The monthly reports reflected the current estimated 

average survival rate of plantations established under CSD contracts and status of 

POs’ livelihood projects. It did not, however, provide information on the 

implementation of other activities reflected in the CRMF. 

Inspection conducted by the team revealed that activities under the CRMF and 

Annual Work Plan were actually not undertaken as manifested in the following 

conditions: 

Project 

STAGBAK 

Mangrove 

Rehabilitation 

Subproject 

Conditions 

• Watch over towers constructed during CSD implementation 

were not maintained, thus, no longer existing; 

• Plantation protection issues brought to the attention of the 

officials of Tagburos were not acted upon; 

• Removal of barnacles not undertaken as POs gave priority to 

activities that would provide them income to sustain their daily 

needs; 

• Accounting reports were not generated due to lack of funds to 

pay for the services of an accountant. The financial status of 

the PO could not therefore be determined; 

• No trainings conducted after CSD implementation; 

85


Province 

Nueva 

Vizcaya 

Project 

Brgy. San 

Isidro 

Integrated 

Social Forestry 

Multi-purpose 

Cooperative 

(BSIISFMPC) 


Conditions 

• Funders of the proposed livelihood projects of POs has yet to 

be tapped; 

• Members could not pay their monthly dues and capital shares 

due to financial constraints; and 

• Marketing outlets were not yet established due to lack of 

funders for the proposed project. 

The following were reported but not quantified in the 

Accomplishment Report: 

• Livestock raising to augment individual income of members; 

• Patrolling of CBFM area; and 

• Cross visits to other successful POs. 

The DMADAI submitted to DENR in March 2005 its accomplishment on CY 2003 

AWP. The report was apparently not evaluated by the DENR. The team’s 

evaluation revealed that a number of activities in the AWP were actually not 

undertaken: 

Activities 

Per approved 2003 

AWP 

Target 

Target 

Date 

Accomp. 

As of 

3/2005 * Remarks 

Conversion of PO into 1 July - PO did not apply for 

Cooperative 

CDA registration. 

Membership 

not Dec - No reported activity 

development and 

quantified 

continuing education and 

training 

Plantation and protection 

maintenance 

Foot patrol 

1,710 has 1,710 has 

Co nstruction and 213 has. 

213 has. 

maintenance of 

fireline 

Implementation of FS 2 - No reported activity. 

Per team’s interview, 

the PO is not capable 

of conducting 

feasibility studies. 

Implementation of 

Livelihood projects 

2 - No reported activities. 

No 

Establishment of Demo 1 - Reason provided to the 

Farm 

team. 

Conduct of training on 2 Dec. - 

leadership and project 

management for PO 

Officers. 

Conduct of inventory of 

stumps, branches and 

28.0 cu.m. 

Not 

- 

No report ed activities 

roots 

indicated 

Conduct Monthly BOD 

meetings 3 3 

Submit periodic reports 3 3 

* Per PO’s Capsule Report covering January to March 2005 

The PENRO, however, reported in its 2004 Annual Report that compliance by 17 

POs, including DMADAI, with CBFMA was monitored. The extent of monitoring 

actually undertaken and POs’ compliance with the CBFMAs were, however, not 

discussed. 

The team also noted that DENR- Region II developed a simplified tool in 

86


Province 


conducting comprehensive assessment and evaluation of CBFM projects within the 

region. As of audit date, 28 out of 116 CBFM projects regionwide, have been 

subjected to such evaluation. The frequency of conducting the evaluation and 

assessment and the persons/offices responsible in conducting the evaluation were 

not clearly specified. The team was informed that the tool was intended for CBFM 

projects with Resource Use Plan only. Evaluation of the developed tool also 

revealed that the same is still not adequate. It did not include assessment of the 

physical condition of the project. 

The requirements under DAO 2004-29 (Revised Rules and Regulations for 

the Implementation of Executive Order 263, otherwise known as the 

CBFM Strategy) for a participatory mode of monitoring and evaluation 

through a composite team composed of the RENRO, PENRO, CENRO, 

LGU, AOs/NGOs and other concerned sectors were also not yet 

implemented as of audit date. The joint monitoring was required to be 

conducted annually to assess various issues, problems and constraints on 

critical activities related to the development and strengthening of the CBFM 


The inadequacy of DENR’s monitoring mechanism made it difficult to 

assess the physical conditions of the project and the POs capability to 

continuously maintain and protect the CBFM areas. Problems and 

deficiencies therefore could not immediately be addressed. 



On monitoring and evaluation process, 

this is one area which is very vital but 

the limited manpower and resources 

have caused our projects to suffer in 

terms of monitoring the progress as 

well as the deficiencies of the POs. 

Although we have already developed 

the necessary monitoring and 

evaluation tools, these have not been 

implemented in all our projects. In the 

case of data base maintained by the 

CENROs, the information contained is 

inadequate due to insufficient 

manpower, limited equipment and 

resources to conduct accurate baseline 

survey, updating information and for 

monitoring purposes. 


The limitation on manpower and 

resources to monitor progress of 

CBFM project should have been 

considered and addressed since project 

inception. Implementing programs 

that could hardly be monitored and 

assessed may result in wastage of 

government resources. 

87




Data base maintained by CENROs 

and PENROs were not adequate - this 

is true on the premise that most of the 

CENROs are just starting to procure 

their units and training personnel to 

handle the same. In the absence of the 

data base however, the office have 

maintain the traditional way of 

keeping hard file which can readily be 

made available upon demand in a bit 

longer time compared to data base. 

The CRMF and a five-year 

development plan are no longer an 

issue as there has been ultimatum 

issued to cancel all CBFMA issued 

without the affirmed CRMF. 


The team appreciates the desire to 

automate and improve the CENRO’s 

database. As discussed above, the 

present manual database was not 

adequate as a number of information 

needed to assess the attainment of 

CBFM objectives were not captured. 

Even if the same was then automated, 

the success of the program could still 

not be easily assessed. 

Provided by PENRO-Bukidnon 

This management partly concurs with 

the findings that some training is 

needed to equip the personnel tasked 

to undertake the monitoring and 

evaluation of CBFM Project 

Implementation. Only that during the 

actual conduct of survey/monitoring, 

it was not only them who facilitated 

filling-up the assessment forms but 

also other DENR employees who 

assisted them without the proper 

guidance or the benefit of the training. 

The bottom line is that CBFM Unit in 

the CENRO and even in the PENRO 

level is undermanned. Structurally, not 

enough manpower can run the entire 

program of activities under the 

CBFMP. Presently, a CENR Office 

caters an average of 20 CBFM-POs as 

against one (1) CBFM Officer. Some 

of which had already implemented 

socio-economic and development 

programs which the lone CENRO 

CBFM Officer had to monitor. 

The success and failure of a project is 

greatly influenced by the effectiveness 

or ineffectiveness of monitoring and 

evaluation mechanism. Thus, PENRO 

should ensure that sufficient and 

relevant information are gathered at 

any point in time by responsible and 

duly authorized and trained personnel. 

Likewise, as discussed earlier, the 

difficiency in resources should have 

been resolved even before the 

implementation of the program. The 

adequacy of DENR personnel to run 

and manage the program should have 

been assessed. 

88



The new guidelines issued by the 

higher Offices prescribing the conduct 

of monitoring require a lot of 

paperworks to comply which the 

CBFM Officers find difficulties. The 

accumulation of tasks under the 

CBFMP can be partly attributed on the 

planning and programming system 

where a subordinate Office (PENRO 

and CENRO) had to issue a CBFMA 

in compliance of the target given by 

the higher office without the benefit of 

making assessment if previous 

CBFMA issuances had been well 

assisted technically and financially. 

Should the target had been moderately 

considered by making assessment 

first, it might not have reached to 

point where many activities had to be 

done hastily resulting to many 

deficiencies. 

We concur with the observations and 

recommendations of the audit team 

with regards to the enhancement and 

maintenance of all relevant CBFM 

databases. In fact, the Office is 

currently doubling its effort in 

coming-up with a comprehensive 

statistical data not only confined with 

the CBFMP but also other forestry 

developmental programs. With the 

installation of the Forestry 

Information System (FIS), it is hoped 

that all relevant data will soon be 

captured in this one pack database 

management program. The CBFMP 

matrix which the audit team might 

have scanned only features general 

information of a particular CBFMA. 

While there is a separate CBFM 

Profile being maintained by the 

management, it is more convenient to 

have them in a capsule under one 

integrated program to provide an 

immediate picture of a project. 


PENRO should make representation 

with the DENR officials on this regard 

and devise an applicable monitoring 

system. Apparently, continuous 

issuance of CBFMA even to POs 

deemed not yet prepared and capable 

to assume all related obligations is not 

serving the purpose and wasting 

government resources. 

The team appreciates the DENR’s 

effort to enhance the existing system. 

89



With regards to CRMF compliance of 

the 92 identified CBFM-POs, they 

were given until June 2006 of the 

current year to submit their 

Comprehensive 

Resource 

Management Framework. 

The delay is attributed to the limited 

time of CBFM Officer to handle all 

programs outlined under the CBFMP. 

Added to that, the Peoples 

Organization are too dependent with 

the DENR technical and financial 

supports which cannot be 

accommodated also given the very 

limited budget. 

Provided by CENRO - 

Bayombong 

Although this Office did not follow 

the outline/format in reporting CBFM- 

PO accomplishment, monthly reports 

had been submitted from the time the 

project was converted from 

Reforestation into CBFM Project. As 

gleaned in the attached monthly report 

specifically in the issues and concerns, 

actions taken to improve PO 

performance by the DENR-SUSIMO 

have been reflected. 

Attached also is the report of 

inventory of the stumps, branches, 

roots conducted by our personnel in 

response to the resolution # 02 of the 

PO. 


DENR should closely monitor 

submission of CRMF on the 

prescribed deadline. 

This only manifests that the trainings 

conducted to prepare the POs were not 

yet adequate to enable them to manage 

their responsibilities with 

least 

supervision and assistance. 

The team agrees that the management 

is preparing monthly reports. 

However, these reports were not 

compared with the approved Annual 

Work Plan. Thus, unimplemented 

activities were not noted and given 

remedial actions. 

The conduct of this activity was only 

one of the activities identified in the 

2003 AWP of the PO. The PO did not 

even include this in the report. 

Apparently, the inventory was 

undertaken by the DENR itself. The 

PO’s performance should be 

monitored and assessed in the light of 

its compliance with its AWP and 

CRMF. 

2. 

In PWRS, the POs’ accomplishments during CSD implementation 

could not be relied upon as accomplishment reports reflect double 

entries affecting the total area accomplished while some reported 

90


accomplishment differs from one report to another. Thus, actual 

accomplishment of the POs could not be determined. The team’s 

validation disclosed further discrepancies affecting the accuracy of 

reports. 

Under Section 6.2 of DAO 2001-01, the release of retention fee is subject 

to compliance with the following requirements, among others: 

• Approved final subproject area is fully planted and developed; 

• The weighted average survival rate of seedlings planted in the whole subproject 

should be at least eighty percent (80%). Individual component’s computation 

shall be based on the planting density of each component’s target; 

• For the reforestation component, the average height of seedlings shall be at least 

one (1) meter except for rattan, bamboo and other non-timber components whose 

quality shall be based on the technical judgment of expert evaluators; 

• All structural improvements specified in the latest approved contract have been 

completed; and 

• Terminal report with updated maps and dated photographs duly certified by the 

CENRO as recommended by SUSIMO. The photographs should be composed of 

close-ups and panoramic views of the subproject’s accomplishments. 

As maybe noted, the PO is required to submit terminal report. The 

validations of physical accomplishment were contracted by the DENR to an 

NGO whose responsibilities are embodied under MC 2001-04. The NGO’s 

validation activities are documented in the Monitoring and Evaluation (M 

& E) Report required to be submitted upon expiration of the contract. The 

NGO’s report is still subjected to final validation by the DENR Composite 

Team which is required to submit Validation report. 

Review of the M & E, Validation and Terminal reports, however, revealed 

discrepancies rendering the reported total area developed and computation 

of the Weighted Average Survival Rates inaccurate as illustrated below: 

• 10 parcels were counted twice in both M & E and DENR tally sheets 

resulting in increased reported developed area by 13.20 hectares. It may 

even be noted that in some cases, the location and plant species in the 1 st 

entry is not the same in the 2 nd entry while the reported WASR differ in 

almost all cases, as illustrated below: 

1 st entry 2 nd Entry 

PO/Member Area Parcel No. 

WASR/ Area Parcel No. 

/Location 

Specie 

/Location 

WASR/ 

Specie 

OSA IR1 97-98 96.50 1.01 IR1 97-98 95.00 

Capio, E. 1.01 Malungon Mn Malungon Mn 

IR9 1996 86.00 1.38 IR9 1996 85.84 

Yambagon, F. 1.00 Palocpoc Gm Palocpoc Mn 

IIAF10 97-98 96.20 0.84 IIAF10 97-98 96.20 

Guimba, T. 0.84 Saging Du,Bn Saging Du,Bn 

Palha, J./ IAF19 97-98 90.00 2.37 IAF19 97-98 92.50 

Tamunan M 2.37 Malungon Mg,Bn Malungon Du,Cf 

91


1 st entry 2 nd Entry 

PO/Member Area Parcel No. WASR/ Area Parcel No. WASR/ 

Location Specie /Location Specie 

CEDAMCO IIR6 98 85.57 1.23 IIR6 98 94.41 

Dalomatao, P. 1.23 Sinanglayan Gm Sinanglayan Ba 

IIR17 98 81.33 1.79 IIR17 98 83.89 

Pansoy, J. 1.79 Car. Village Ba,Gm,Mn Car. Village Gm 

IR2 76 01 94.78 1.20 IR2 76 01 86.96 

Parojinog 1.20 Tagulanao Ba,Mn Tagulanao Ba 

IR1 06 99 83.12 1.23 IR1 06 99 94.51 

Perez, A. 1.23 Bulacao Ba,Gm,Ma Bulacao Ba,Gm,Ma 

IVAF3-06 99 95.78 1.61 IVAF3-06 99 89.44 

Atilano, B. 1.61 Mahayahay Ma,Bn Mahayahay Ma,Bn 

IIAF1 66-99 91.50 0.92 IIAF1 66-99 97.85 

Dalomatao, A. 0.92 Sinanglayan Cf Sinanglayan Cf 

Totals 13.20 13.58 

Legend: Ba Bagras Du Durian Mg Mango 

Bn Banana Gm Gmelina Mn Mangium 

Cf Coffee Ma Mahogany Na Narra 

• 10 parcels included in the M & E report were not included in the DENR 

validated report, 5 of which were not included in the Terminal Report as 

illustrated below: 

PO M & E Area 

M & E 

Parcel Code 

PO Terminal 

DENR Report 

PAGTUKAS Terre, A. 0.72 IR5 97 x IR5 97 

Cabalida, N. 1.46 IR 23 98 x IR 23 98 

Lumambas, T. 1.85 IR 14 98 x IR 14 98 

Barquio, V. 2.50 IIR 898 x IIR 898 

Amahoy, S. 1.70 IIIR11 98 x IIIR11 98 

PAGTUKAS Tusoy, V. 1.23 IR 997 x x 

SAHA Lasponia, L. 1.07 IIIR24 96 x x 

Akiatan, R. 0.82 IIIR29 96 x x 

Baguio, V. 2.85 IIR8 96 x x 

Baguio, V. 1.51 IIR7 96 x x 

Grand Total 15.71 

• All three (3) reports reflected different sizes in the following parcels : 

Area (has.) 

PO Component Claimant Parcel No. Location M & E DENR PO TR 

OSA Agro Tamunan, M. IAF19 97-98 Malungon 0.91 2.37 2.37 

CEDAMCO Refo Cuñado, J. 

IAF19 97-98 Malungon 0.39 2.37 2.37 

IVR103 97 

or IVR 40 98 B. Silang 1.26 1.26 3.01 

Totals 2.56 6.00 7.75 

Note: TR – Terminal Report 

The team’s ocular inspections of CSD areas further uncovered a number of 

discrepancies in reporting affecting the validity of the reports: 

• Six (6) parcels equivalent to 19.08 hectares undertaken by PAGTUKAS 

were found to be in another site other than the site identified by the DENR 

as illustrated in the next page: 

92


Parcel Area Location 

Component Claimant No. has.) Species DENR COA-TEAM 

Refo Ramos, A. IR2198 1.61 Ba,Mn Dayag Mawe-i 

IR2298 1.21 

Agro IAF1698 1.23 Du,Bn 

Refo Suico, H. IR898 4.11 Gm,Ma,Mn,Na Mauswagon Kauswagan 

Rofernando, M. IIR398 9.06 Gm,na Mawe-i Bayting 

Agro De Asis, A. IIAF798 1.86 Du,Bn 

19.08 

• Reported species on 10 parcels equivalent to 15.46 hectares were different 

from the actual species planted in the area as tabulated below: 

PO 

Component 

Claimant Parcel No. Location 

Area 

(has.) 

Species 

DENR DENR COA 

OSA Refo Villaflores, C. IIIRx8-02 Sn Isidro 2.31 Mn Gm, Mg 

Butanas, E. IIRx5 2002 0.85 Mh Gm,Ba 

Agro Delapenia, C. 

IIIR14 96 0.98 Mh Gm, Mg,Mh 

IIIAFx30 

2002 P3 1.1 Ma,Bn Du,Cf 

Seray, S. IAF19 97-98 Malungon 1.08 Po,Cf Mn,Bn 

Palha, J. 2.37 Ma,Bn Po,Sn 

OSA Agro Tamunan, M. 2.37 Du,Cf Mn 

Refo Villahermosa, C. IRx3 2002 1.84 Mn Gm, Mh 

CEDAMCO Refo Apol, L. IIIR3-90 01 Kaangayan 1.07 Ba,Gm, Mn,Na Mn only 

Agro Naicatuna, L. IVAF13 98 1.49 Po,Bn Du,Bn 

Total 15.46 

Sample photos follow: 

Main crop per report is durian while 

main crop per ocular inspection is 

mango 

Main crop is not visible within the 

CSD area 

• Of the 45 parcels inspected by the team with an area of 82.23 hectares, 

five parcels reported by the DENR to have achieved 77 to 100% WASR 

have now zero to only about 20% WASR as tabulated below: 

PO 

Name 

Area per 

Surviva 

l 

DENR 

Rate 

Tally 

Sheet Parcel# DENR COA Pictures 

OSA Pasatiempo, A. 1.04 IIIAF29 97-98 100% 0% 

OSA Pasatiempo, A. 1.74 IIIAF30 97-98 77% 0% 

93


PO 

Name 

Area per 

Surviva 

l 

DENR 

Rate 

Tally 

Sheet Parcel# DENR COA Pictures 

OSA Palha, J. 2.37 IAF19 97-98 90% 15% 

OSA Canete, I. 1.05 IAF4 97-98 89.52% 0% 

SAHA Magale, S. 5.25 IIAS2 97-98 92.80% 20% 

The erroneous reporting would have a great impact on the payment of CSD 

accomplishments and release of retention fee. Consider: 

• The reported double entry connotes double counting which consequently increased the actual 

developed area. It must be noted that CSD accomplishments on established plantations were 

paid on a per hectare basis, thus, double reporting also results in double payment; 

• Inconsistent reporting of project size also connotes excess payment on CSD contract since as 

mentioned, payment is on a per hectare basis, hence, the bigger the size, the bigger the 

payment; 

• Fictitious areas as manifested by their absence in other reports connotes excess payment as 

this means payment for something that were not really accomplished; 

• Any unreasonable increase in project area will affect WASR as bigger areas contribute much 

in the weighted average rate computation; and 

• Overstated survival rate in some parcels contributed to the attainment of survival rate 

benchmark. 

The inconsistencies of data maintained by DENR manifest unreliable 

reporting system. As long as these reports remain unreconciled, the actual 

accomplishments of the POs could not be determined. 


Provided by CENRO- Malaybalay 

While it is true that there were double 

entries of recording in both M 

& E and DENR tally sheet of certain 

PO developer in Reforestation and 

Agro-forestry component of POs, we 


The double entries in the M & E 

report were not corrected but were 

also reflected in the DENR 

validation report. As explained by the 

CENRO, the validation report was 

94



acknowledged that the same was an 

honest mistake in the recording 

process especially in the Plantation 

Register of POs like PO-OSA & PO- 

SAHA. However, despite this honest 

lapses there had been no reported 

increase in areas developed because 

of validation as basis for payment 

these areas has not been doubly 

paid/validated. 


One parcel located at PO- 

CEDAMCO under the name of 

Jacinto Cuñado certainly is only 1.26 

hectares under Refo component 

instead of the alleged 3.01 hectares 

per Terminal Report of PO- 

CEDAMCO….On one hand the two 

parcels at PO-OSA area were indeed 

an honest mistake. 

The six parcels of PO-PAGTUKAS 

with an equivalent area of 19.08 

hectares as recorded in the DENR 

tally sheet, M & E report, Plantation 

Register were really established in the 

area as stated therein and these was 

confirmed by the PO during the 

verification/dialogue conducted. The 

PO acknowledge that the plantation 

exist only that the location was in 

another site. 

The reported species on 10 parcels do 

not match with the actual species 

planted in the area due to replanting 

activity by the PO that the seedling 

species replanted were not the same as 

originally planted due to scarcity of 

seedlings. 

On three parcels equivalent to 3.83 

hectares found to have no plantations 

at all. The three mentioned parcels 


used as the basis for payment. It 

could therefore not be claimed that 

there was no double payment. 

Such errors should have been 

accordingly corrected. 

This manifests inaccuracy in 

reporting. The correct location should 

be indicated in the report. 

It may be noted that replanting 

undertaken after final validation were 

done only in parcels. Hence, 

surviving original species should be 

visible within the area inspected by 

the team which was not so. 

The consequences of the action should 

be adequately explained to the owner 

and that repetition of the act would 

95



were part of the CSD of the PO 

however it was plowed cleared and 

converted by the owner to corn land as 

source of living. The PO concerned 

has already an agreement with the 

developer to replant the area. 


mean imprisonment and forfeiture of 

benefits inherent in the CBFMA. 

96

Chapter 4 

Appropriate Safekeeping Procedures 

97

APPROPRIATE SAFEKEEPING PROCEDURES 

INTRODUCTION 

Among the activities undertaken by the DENR is confiscation of illegal logs 

and conveyances. These confiscated forest products could only be of use to the 

government if the same is properly protected, preserved and eventually 

disposed of. 

Proper protection and preservation of physical and economic value of 

confiscated products would entail sound safekeeping measures which cover 

provision of adequate storage facilities and accurate recording system. 

The audit disclosed that confiscated forest products were not immediately 

disposed and deposited at various places exposed to deterioration. The total 

value of these products could not be immediately determined due to the 

DENR’s failure to record some forfeitures and disposals. 

OBSERVATION 

Forfeiture of confiscated abandoned/no claimant forest products were 

not facilitated due to the failure of the CENROs to conduct 

administrative summary proceedings and delayed issuance of forfeiture 

order. This resulted in accumulation in quantities which could no 

longer be protected by DENR Offices. These then were stored in open 

spaces exposed to deterioration and loss. There were also forfeiture 

orders which were not booked up. 

Executive Order No. 277 dated July 25, 1987 provides that forest resources may 

be effectively conserved and protected through the vigilant enforcement and 

implementation of forestry laws, rules and regulations. For this purpose, the 

Head of the DENR or his duly authorized representative is authorized to order 

the confiscation of any forest products illegally cut, gathered, removed, 

possessed or abandoned, and all conveyances used either by land, water or air in 

the commission of the offense and to dispose of the same in accordance with 

pertinent laws, regulations or policies on the matter. 

Disposition of confiscated forest products of the DENR is governed by 

Administrative Order (AO) No. 50 which provides, among others, that these 

can be disposed of through donation to LGUs and other government agencies to 

98


be utilized, particularly for their rehabilitation projects. The products subject to 

disposition are: 

• Those which are not subject of a pending case in court or with other 

appropriate offices; 

• Those without claimants or offenders against whom the case could be filed; 

• Those found abandoned within forest areas, the ownership of which could 

not be ascertained and without claimants. 

Despite directives to all Regional Executive Directors (RED) to fast track 

issuance of Forfeiture Orders on all confiscated forest product, disposal was 

nonetheless delayed resulting in accumulation of confiscated items which could 

no longer be protected by DENR Offices. As of December 31, 2005, 

confiscated conveyances and forest products in selected PENROs & CENROs 

of the four DENR Regional Offices visited by the team were valued at 

P12,375,316.96 as summarized below: 

PENRO/ Conveyances Chainsaw Forest Products 

CENRO Pcs Amount Pcs Amount Bd. Ft. Amount 

Total 

Amount 

PENRO Palawan 4 P570,000 5 P143,690 135,948.31 P 3,355,889.05 P4,069,579.05 

PENRO Leyte 10 1,630,000 1 data 89,907.00 2,818,570.11 4,448,570.11 

CENRO Bayombong 12 No data 12,946.00 31,688.00 31,688.00 

PENRO Bukidnon 12 1,628,000 3 100,000 119,289.39 2,097,479.80 3,825,479.80 

Total 38 P3,828,000 9 P243,690 358,090.70 P8,303,626.96 P12,375,316.96 

Note: The volume and no. of pieces included those items without estimated values. 

The delayed disposal may be due to delayed issuance of forfeiture orders which 

took 56 to 2,163 days from the date of apprehension as illustrated below: 

Province 

Date of 

Apprehension 

Date of 

Forfeiture 

Lag time 

(days) 

Palawan 03-04-99 04-13-00 405 

08-23-98 10-10-02 1,508 

09-25-01 11-20-01 56 

06-07-01 07-02-04 1,058 

Leyte 06-03-99 01-29-03 1,331 

02-21-97 01-29-03 2,163 

02-14-00 01-29-03 1,075 

07-22-00 03-20-03 603 

09-02-01 12-10-01 98 

07-25-00 02-21-01 206 

Bukidnon 07-18-03 06-21-04 333 

01-21-04 07-26-04 185 

01-21-04 07-16-04 175 

03-16-04 07-16-04 120 

02-02-04 06-02-04 120 

04-13-04 07-26-04 103 

02-26-04 06-02-04 96 

This condition may have been influenced by the absence of timeline within 

which to issue forfeiture orders. The prolonged processing of forfeiture orders 

99


hindered the immediate disposition of forest products. Forest products not 

immediately disposed of, losses its maximum usage/economic value as they 

were deposited in various premises without adequate storage exposed to various 

elements posing risk of being stolen and rotten. 

Inspection conducted by the team revealed that most of the confiscated forest 

products, conveyances and chainsaws were stored in open spaces exposed to 

deterioration, a huge volume of which were already in their deteriorating state 

as shown below: 

Place of 

storage Particulars Status Cost 

Nueva Vizcaya 

CENRO- 

Bayombong 

Unserviceable 

Not 

available 

Various conveyances 

Deteriorated/ 

deteriorating 

At least 

P6,757 

Various logs 

Bukidnon 

CENRO - 

Talakag 

CENRO- 

Malaybalay 

20 pcs. Mixed species 

Deteriorating 

Not 

available 

4 units chainsaws inside bodega 

100


Place of 


Deteriorating 

Chain sawn lauan inside Isuzu 

forward truck 

Dilapidated 

Not 

available 

Impasugong 

PC 

compound 

CENRO- 

Manolo 

Fortich 

Isuzu truck 

PNP- 

Manolo 

Fortich 

Antipolo 

Deteriorating 

200,000.00 

Quezon 

Municipal 

Hall Motorpool 

Isuzu ELF 

Not 

available 

Confiscated lumber used as heavy 

equipment ground support 

101


Place of 


Quezon 

Municipal 

Hall Motorpool 

Deteriorating 

Quezon 

market area 

Confiscated lumber used as ground 

cover of bags of cement 

Not 

available 

Rotten 

Bukidnon 


Incorporated 

(BFI) 

Mixed specie 

Dilapidated 100,000.00 

Nissan 10 wheeler truck 

rotten 

Bukidnon 


Incorporated 

(BFI) 

Macaasim 

Under court 

litigation, 

dilapidated 

Not 

available 

Isuzu Forward 

102


Place of 


Bukidnon 


Incorporated 

(BFI) 

Nissan 

With pending 

case, dilapidated 

Not 

available 

DENR-R10 

Compound 

Isuzu Elf 

Under court 

litigation, 

dilapidated 

200,000.00 

Leyte 

Camp 

Kangleon, 

PNP RO 

No. 8 

Jeepney 

Abandoned, 

deteriorating 

Abandoned logs /lumber 

Not 

available 

Unserviceable 

conveyances 

103


Place of 


CENRO- 

Palo 

Anay-infested 

lumber 

Unserviceable 

conveyances 

In good 

condition lying 

on muddy 

ground 

Not 

available 

PNP - 

Palompon 

Three piles of lumber 

In good 

condition lying 

in open spaces 

Palawan 

DENR 

compound 

Exposed to sun 

and rain 

2,887,406.19 

Logs and lumber 

104


Place of 


City Hall 

Compound 

(Bantay 

Gubat) 

PCSD 

Photo not available 

Lumber 

Left in open 

space 

Stored in an 

unlocked space 

Not 

available 

ELAC 

Chainsaws 

Photo not available 

Chainsaws 

The team also noted that forfeited and disposed products were not recorded at 

the PENRO’s books. This was due to the failure of the Regional Offices (ROs) 

to furnish PENROs copies of final forfeiture order issued by the RED and 

PENROs/CENROs failure to furnish the Accounting Department copies of 

disposed/donated products. At PENRO Palawan, the accounting office failed to 

reconcile Forfeiture Order with pertinent documents and therefore, could not 

take up in the books, the value of the forfeited products. 

The absence of proper accounting and recording made it difficult for the ROs to 

monitor the completeness of confiscated items reported by PENROs/CENROs. 

The team was informed that the RED issued Memorandum to PENRO-Palawan 

on September 1, 2004 with instruction to conduct inventory of confiscated 

forest products in all CENROs as reports from mayors of Palawan disclosed 

that some of the confiscated products were already missing. However, as of 

audit date, the required inventory was apparently not yet undertaken as no copy 

of the report could be forwarded to the team despite repeated requests. 



Please refer to DAO 97-32 on 

confiscation procedures and that 

confiscated products should be turned 

over to the Natural Resources 


As discussed in the report, despite 

existing regulations requiring the turn– 

over of confiscated products to the 

NRDC, a great volume remained in the 

105



Development Corporation (NRDC), 

which is the business arm of DENR. 

Provided by CENRO-Bayombong 

Please be informed that the Chief, Forest 

Protection and Law Enforcement Unit at 

the time of evaluation was designated 

only on May 2004. Records of 

seizure/confiscation and apprehension of 

forest product and conveyances prior to 

be his designation are nowhere to be 

found. The fact is, the now CENRO was 

only reactivated as such in January 2002 

after being relegated by the PENRO as a 

mere PENRO extension office. Hence, 

all records of confiscation were with the 

Legal Officer at the PENRO. The 

predicament was aggravated when the 

PENRO Legal Officer retired from the 

Government Service at the middle part 

last year (2005) and the untimely death 

of the Legal Aide (Secretary) without 

them turning over to the Office the 

records/case folders of all those brought 

to the Office compound (both vehicles 

and lumber) for impoundment. 

Provided by PENRO Bukidnon 


custody of the confiscating officer. 

Worst, these were left unprotected and 

already in its deteriorating stage, if not 

yet deteriorated. 

With or without record of seizures, all 

confiscated logs/lumber and 

conveyances stored at the PENRO/ 

CENRO compound should be properly 

protected. As discussed in the report, 

these were left exposed to element 

accelerating their deterioration. 

Moreover, effort should be exerted to 

retrieve confiscation records to facilitate 

their disposal. 

On storage for confiscated logs/lumber 

It is true that indeed some of this 

confiscated forest products are in the 

process of deterioration. Under the forest 

protection activity, no activity or 

allotment is given for the construction of 

shed houses….Even if we do, very little 

amount is set aside for forest protection 

activities and this will further be drained 

if used in the construction of shed 

houses. 

The team calls the attention of DENR 

higher offices on this concern taking into 

account the best interest of the 

government. 

With regards to the disposition through 

donation or public auction of those no 

identified claimant confiscated forest 

products, there had been in fact some 

106



donations made at a time the authority to 

dispose is delegated to the REDS, 

PENROs and CENROs under the 

operation of DENR Administrative 

Order No. 36, series of 1988. The 

dynamism of forestry laws, rules and 

regulations changes overtime and this 

brought about the changes in the 

delegation of authority from the field 

offices to the Secretary, from the 

Secretary to NRDC, from NRDC to field 

offices and the cycles goes on. The latest 

issuance is the memorandum of 

Secretary Defensor dated May 19, 2005 

transferring the authority to the NRDC. 


Much of this Office desire to dispose 

this confiscated forest products to 

recover its economic value, same is 

constraint by the changes in DENR 

policies. 

On confiscated conveyances 

While section 3 of Administrative Order 

No. 59 Series of 1990 provides the 

requirements in the transport of forest 

products, apprehended forest products 

and the conveyance usually do no bear 

the required transport documents, thus 

the confiscation. Even after criminal 

proceedings the conveyance is forfeited 

in favor of the government, same had 

difficulty in registering in the name of 

the government since no OR and CR is 

ever provided by the owner. In fact it 

would be unlikely for them to provide 

the same if this will be used against 

them. 

DENR should make representations with 

the Land Transportation Office and other 

concerned offices regarding the matter. 

107

Part V 

Recommendations 

108

RECOMMENDATIONS 


In order to address the noted observations and improve the implementation of 

the CBFM projects, the team recommends that the: 

• RED, PENRO and CENRO should ensure 

- POs’ compliance with the CBFMA, CRMF and AWP, particularly, in 

undertaking forest protection activities. They should also be required 

to submit complete information sufficient to assess the extent of 

implementation of the POs’ planned activities. 

- That coordination with LGUs and other enforcement agencies are 

made in dealing appropriately with forest fire culprits. 

- That all activities under Community Organizing are executed and 

provide satisfactory results, and that POs are continuously trained 

until they attained the capability to manage CBFMA area and 

promote appropriate upland cultivation with minimal supervision and 

assistance. 

- That activities of all CBFM participants are synchcronized and that 

all necessary clearances and information are provided to other 

sectors. 

- That representations with LGUs are made to consider seeking 

clearance/recommendations from the DENR field offices before 

issuing any permit affecting the CBFM area. 

- That only those livelihood projects that are within the financial and 

managerial capabilities of POs are introduced and that as much as 

possible, feasibility studies containing basic information such as 

availability of raw materials and existing market for the product are 

conducted. 

- That plantation areas exclude unsuitable area to minimize, if not 

totally avoid, losses of scarce government resources. 

- That deviations from the feasibility studies are made only after 

determining that the same would be more advantageous both to the 

government and the PO. 

109


- That only trained personnel will conduct monitoring and evaluation 

to ensure adequacy and reliability of data gathered. 

- That confiscated items are disposed within the timeframes to be set by 

the FMB and that forfeitures are accordingly recorded in the books of 

the PENROs. 

• FMB should 

- Establish minimum percentage of household population to be 

mandatory members of the organized PO and minimum percentage of 

the CBFM area to be covered by CBFM Agreement. The established 

minimum percentages of area and households may also be used as 

criteria in assessing the success of community organizing and the 

performance of assisting organization. 

- Establish criteria within which to dispose confiscated items. 

110

Submitted in compliance with COA Mnagement Services and Technical 

Services Sector Office Order No. 2005-037 and 2005-037A dated July 6, 2005 

and October 17, 2005, respectively. 

111

Part II Community-Based Forest Management Program - ppmrn

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