Philippine President to Launch Carago Industrial Tree Plantation

Copyright 2001 Asia Pulse
December 7, 200

BUTUAN CITY, Dec 7 - President Gloria Macapagal Arroyo is set to launch the multi-million dollar Caraga Industrial Tree Plantation tomorrow.

Outgoing Environment and Natural Resources Executive Director Elias Seraspi of the Caraga Region said that five multi-national companies will invest about US$100 million on tree plantation projects in Agusan del Sur.

These companies include the Techland, Goldenbell Mills, Caraga Forest, Transland and Shannalyne, which have already complied with all the requirements needed for the issuance of an Industria, Forest Management Agreement (IFMA).

Seraspi said these five joint venture companies will undertake initial tree planting activities in grasslands, brush lands, open and denuded forest lands seeking to establish industrial tree plantation. He said these companies are expected to convert around 110,790 hectares of open and denuded lands and production forest lands in Agusan del Sur into large scale plantations.

PA 21 is the country's national agenda for sustainable development in the 21st century and its commitment to the Rio Declaration.

It targets the establishment of some 500,000 hectares of forest plantations and another 200,000 hectares of tree plantation corridors.

The establishment of timber corridors are essential for the production of timber, lumber and other non-timber commodities such as essential oils, gums, latex and resins.

This is in addition to the existing natural and protected forests which contribute to sustainability and the economy by concentrating timber production in areas close to markets and transport corridors.

Seraspi said that with the operation of the tree plantation project in Agusan del Sur, the country's dependence on imported wood is expected to slow.

Such dependence is a drain on the country's dollar reserves, while the demand for the material has been on the rise due to increasing industrial and construction activities in various metropolitan centers in the country, he added.

On the other hand, some groups are against the establishment of timber corridors. They fear that it will hasten the loss of biological diversity or it will provide no safeguards for the issuance of IFMA contracts to corporations without proper and culturally appropriate consultations with affected indigenous people.

While these opposition groups air their concerns, Seraspi said they can not provide an alternative which can meet the country's lumber requirements for the next 10 years.

Meanwhile, DENR Secretary Heherson Alvarez said he is optimistic that the entry of these five multi-national companies will attract foreign capital investment which would help the Philippine wood industry contribute an annual US$300 million in foreign exchange earnings for the country.

He stressed that the project is also expected to generate at least 5,000 jobs under the tree plantation venture, and several thousands more people will benefit through allied business such as transport, housing and food.

The Philippines has been importing about 65 per cent of its wood requirements during the last 10 years at a cost of around US$117 million, while the timber industry has been on the decline for the last two decades due to population pressures and illegal cutting activities.

Alvarez said timber corridors would be able to supply the country's three million cubic meter per year domestic requirement, consisting basically of lumber, plywood and particle board.

He said that the DENR is vigorously pursuing the development and management of forest resources in the Caraga region, because it is the most suitable area in the country where the success of forestry can be effectively measured.

Caraga hosts around 80 per cent of Mindanao's forest cover. At present, 30,000 small tree farmers are supplying the local traders with a steady supply of cut trees, many of which are fast-growing tree species that have been introduced by the government to enable small farmers to make the most of their products.

The region also regularly supplies Metro Manila and the rest of the country with qualify wood products essential in pulp and paper manufacture. Error: Unable to read footer file.