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2.6 Elevation <strong>services</strong><br />

This last type of <strong>environmental</strong> service relates to <strong>the</strong> use of elevation by certa<strong>in</strong> private<br />

companies to support <strong>the</strong>ir operations. Broadcast and telecom companies are <strong>the</strong> users of<br />

elevation, whereby <strong>the</strong> locational advantage of <strong>the</strong>ir <strong>in</strong>frastructure allows <strong>the</strong>m to <strong>in</strong>crease <strong>the</strong><br />

reach of <strong>the</strong>ir operations. A valuation study was conducted <strong>for</strong> Mt Kitanglad Range Natural<br />

Park (MKRNP) <strong>in</strong> M<strong>in</strong>danao, which became <strong>the</strong> basis <strong>for</strong> impos<strong>in</strong>g user fees aga<strong>in</strong>st<br />

companies with towers located at <strong>the</strong> top of <strong>the</strong> mounta<strong>in</strong> range. MKRNP is part of <strong>the</strong><br />

NIPAS System, and <strong>the</strong>re is a Protected Area Management Board (PAMB) that oversees<br />

conservation activities <strong>in</strong> <strong>the</strong> area (see Section 3). The user fees were implemented through<br />

<strong>the</strong> issuance of a PAMB ord<strong>in</strong>ance, 12 sett<strong>in</strong>g <strong>the</strong> rationale and amounts of <strong>the</strong> fees. As of<br />

2002, <strong>the</strong> PAMB has started collect<strong>in</strong>g revenues from most of <strong>the</strong> companies located with<strong>in</strong><br />

<strong>the</strong> PA. For one particular government-controlled company, corporation, payments are made<br />

<strong>in</strong> k<strong>in</strong>d through re<strong>for</strong>estation activities <strong>in</strong> areas specified <strong>in</strong> <strong>the</strong> PAMB’s management plan.<br />

Box 2.6 Case Study of Development Fees <strong>for</strong> Mt Kitanglad Range Natural Park<br />

Facts<br />

Location: Bukidnon, M<strong>in</strong>danao<br />

Area: 30,642ha<br />

Unique features: second-highest peak <strong>in</strong> <strong>the</strong> country, mak<strong>in</strong>g it an ideal location <strong>for</strong> telecom/broadcast<br />

towers as <strong>the</strong>ir gateway to M<strong>in</strong>danao<br />

Users: telecommunication and broadcast companies<br />

Current fee structure: <strong>in</strong>dividual MOAs between PAMB and <strong>the</strong> companies with one-time payment of<br />

adm<strong>in</strong>istrative fee of PhP5,000 and o<strong>the</strong>r non-cash terms and conditions, e.g. re<strong>for</strong>estation<br />

Management: Protected Area Management Board (PAMB)<br />

Chronology of activities<br />

Presented <strong>the</strong> pilot-test<strong>in</strong>g activity to PAMB <strong>in</strong> May 1998.<br />

Interviewed seven companies at Malaybalay and Cagayan de Oro; reference year is 1997.<br />

Interviewed companies at <strong>the</strong>ir Manila offices.<br />

Procured copies of <strong>the</strong> <strong>in</strong>dividual MOAs from <strong>the</strong> PAMB.<br />

Ga<strong>the</strong>red secondary data from relevant government offices.<br />

Data analysed and report written between March and July 1999.<br />

Presented <strong>the</strong> results to PAMB <strong>in</strong> August 1999.<br />

Presented <strong>the</strong> results to <strong>the</strong> stakeholders <strong>in</strong> October 1999.<br />

F<strong>in</strong>al negotiations between PAMB and <strong>the</strong> stakeholders held <strong>in</strong> November 1999.<br />

Study results<br />

Valuation of <strong>the</strong> terms and conditions of <strong>the</strong> MOA.<br />

Five out of seven private companies have MOAs with PAMB, one with DENR.<br />

Five out of six MOAs require re<strong>for</strong>estation, one requires rehabilitation of visitors' quarters.<br />

Five companies were required to pay adm<strong>in</strong>istrative fees of PhP5,000 <strong>for</strong> duration of MOA.<br />

Average value of MOAs is PhP6,872 per firm per year.<br />

None of <strong>the</strong> companies has complied with all <strong>the</strong> requirements.<br />

Computation of rent us<strong>in</strong>g CA 141 or land code as basis<br />

CA 141 states that rent can be computed based on 3% of re-appraised value of land plus 1% value of<br />

im<strong>pro</strong>vements.<br />

Average value of im<strong>pro</strong>vements was PhP3,023,929 per firm.<br />

Based on 1% value of im<strong>pro</strong>vements, average annual rent that can be collected is PhP30,239 per firm.<br />

12 MKRNP/PAMB(1999), PAMB-Execom Resolution No. 91. A Resolution Sett<strong>in</strong>g <strong>the</strong> Rate of Fees <strong>for</strong> <strong>the</strong> Use of Land and<br />

Any Form of Im<strong>pro</strong>vements with<strong>in</strong> <strong>the</strong> Mt Kitanglad Protected Area.<br />

22

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