Forestry-Strategy.. - The REDD Desk

transform these temporary land-use certificates into permanent land titles may need to beconsidered.3.4.6.3 Funding and IncentivesAPB is on-lending ITPP funds, but losing money in the process. Therefore, it may have to ceaseon lending in the near future or to increase interest rates sharply to protect APB’s financialintegrity and encourage other state and commercial banks to lend for the purpose. Governmentwill consider ways and means for improving tree plantation funding mechanisms.Plantations are currently exempted from land taxes or fees (except for lease payments) andGovernment will study whether other tax or non-tax incentives for tree plantation can beestablished and whether it is possible or convenient to establish special tax incentives for foreigninvestors interested in tree planting.3.5 Harvest/logging plan and RoyaltiesTo regulate forests harvesting, Government annually sets harvest/logging plans and logextraction royalties and determines rules for log sale through the release of Prime Minister’sOrders 7 .3.5.1 Harvest/Logging plansGovernment sets nationwide logging plans, which are approved by the National Assembly, aspart of the Socio-Economic Development Plan. Once approved, the national logging plan isdivided amongst the Provinces and these, through the PAFOs, distribute the provincial loggingplan amongst the Districts and, together with DAFO officers, among the individual productionforests.The national logging plan is determined on the basis of a proposal prepared by MAF/DOF,which itself is prepared on the basis of applications submitted by provincial authorities,municipalities, and special zones. Other factors such as development and budgetary needs anddemands from processing mills are also considered.In the future the Government will propose to allocate the cutting volume on the basis of forestmanagement plans. Currently, however, these are not comprehensive enough and nationallycover less than half of the production forest area. At present, therefore, Provincial and Districtauthorities use them as one of several criteria to divide the provincial logging plan amongstproduction forests.DAFO organizes and monitors logging operations in the field, and reports to the PAFO.Logging operations up to second landing are implemented by state logging units where theseexist, or are otherwise sub-contracted under supervision of Government staff. All logging mustbe within PFA boundaries and subject to management plans; activities not included in themanagement plan or otherwise in violation of Forestry Law and its implementing regulations areprohibited (PMD 59/2002, Arts. 9 and 10).7 The latest are PMO Nº 11 (1999); 10 (2000); 15 (2001), 18 (2002), 28 (2003) and 25 (2004), which regulate logging activitiesin 1999-2000; 2000/01; 2001/02, 2002/03, 2003/04 and 2004/05, respectively.25