IF MORE THAN a decade was not enough for the Department of Environment and Natural Resources (DENR) to make the P5 billion Forestland Management Project (FMP) a success, then perhaps the problem was never about time at all.
As the project concluded in 2024, the Commission on Audit (COA) assessed and evaluated its implementation, and what came out of it was nothing short of a disaster.
COA flagged the project for delayed downloading of funds, an agroforestry site that was converted into a vegetable garden, agroforestry products that went to waste, and the non-completion of two targeted outputs despite the project’s official completion.
P5-BILLION PROJECT
In a nutshell, the FMP is a reforestation effort aimed at increasing forest cover in the country by providing beneficiaries, known as People’s Organizations (POs), with training and orientation to strengthen forest management, while also establishing local enterprises to generate household income.
It also includes the construction of farm-to-market roads, pathways, bridges, tramlines, and irrigation pipeline systems to support forest conservation efforts of upland communities, collectively referred to as Agroforestry Support Facilities (ASF).
The project was a 12-year collaboration between the DENR and the Japan International Cooperation Agency (JICA), which began in 2012. JICA provided P4.53 billion through a loan, while the Philippine government contributed P1.34 billion.
DELAYED FUNDS
COA selected only two locations, Kayapa, Nueva Vizcaya, and Lagawe, Ifugao, for inspection, yet already found numerous deficiencies.
According to the audit report, a common sentiment among the POs was the delayed release of funds, especially during the early stages of the project, which triggered a series of problems.
Most POs were organized only during project implementation and were therefore dependent on funds that were supposed to be released to them.
This resulted in difficulties in recruiting members because funds intended as payment for labor were unavailable, while existing members were hesitant to participate.
Some chose to work without pay, while others sought loans from credit facilities to sustain operations.
DOMINO EFFECT
Because of delayed funding, project implementation also suffered, creating a domino effect of largely avoidable problems.
According to the POs, it took several months to nearly two years before they could proceed with implementation, as that was the only time funds were eventually released.
The project’s delayed execution prevented targets from being met, forcing the compression of activities simply to catch up with commitments under the agreement with JICA.
Since validation activities were scheduled, POs had no choice but to proceed with plantation activities even during the dry season, despite knowing that most seedlings would likely not survive due to unfavorable weather conditions.
Another consequence of delayed fund downloading was the late provision of seed capital intended for enterprise development.
One PO reported incurring losses because the proposed product was no longer in season by the time funds were released.
NO MONITORING
COA also found that after project completion, portions of a 100-hectare agroforestry site in Nueva Vizcaya that was awarded to the Tuppan-Balisyon Upland Farmers Association Inc. (TBUFAI) were converted into vegetable plantations.
A third-party validation team reported an 88.60 percent survival rate as of April 1, 2024, three months before project conclusion, suggesting that the conversion occurred after validation.
Further investigation revealed limited monitoring of FMP sites after project completion.
WASTING FUNDS
No additional appropriations were received for the FMP during the year, and allocations from the DENR Central and Regional Offices were primarily used to pay outstanding project obligations.
However, eight POs were granted financial assistance through a separate DENR program, the Community-Based Forest Protection and Monitoring (CFPM).
“If the insufficient monitoring of turned-over FMP sites continues, there is a high probability that the established plantations may be mismanaged, undermining the accomplishments of the FMP and ultimately wasting the funds utilized therefore,” the COA report stated.
WRONG VARIETY
Meanwhile, even in sites where agroforestry plantations remained intact, such as in Lagawe, Ifugao, the products planted became waste.
Validators found that cacao fruits, the most widely planted crop at the site, were not harvested and were left to rot on the trees.
PO members explained that harvesting was not worth the effort due to low demand and very low selling prices within their community, while other POs reported a lack of cacao supply.
What was intended to generate benefits and additional income for beneficiaries instead resulted in losses.
Compounding the issue was the presence of pests and diseases in plantations, which POs were unwilling to address using pesticides, as the added cost was seen as unjustifiable given the low demand and poor market prices.
CLOSE BUT NO CIGAR
On top of these issues, COA noted the non-completion of two project targets: the issuance of 149 Land Tenure Instruments (LTIs) to POs and the construction of 102 ASF projects.
Only 102 LTIs were issued, while one ASF project, an access road in Lambunao, Iloilo, remained unfinished.
Most ASF projects were funded and implemented with JICA support, which may partly explain the high completion rate.
However, with the contract already terminated, the contractor will be paid based on completed work, while the local government of Lambunao will shoulder the cost of completing the remaining portion.
As for the LTIs, DENR stated that it will continue processing applications even after project closure.
THE OTHER STORY
Notably, a January 2025 article by the Philippine Information Agency presents a contrasting narrative, quoting a beneficiary who expressed positive outcomes from the project.
“The FMP has improved my income and enabled me to send my three sons to university. My sons also want to be involved in forest conservation,” said Jimmy Rapista, a resident of Panuran, Janiuay.
Meanwhile, the DENR Forest Management Bureau highlighted what it described as major accomplishments of the project, including management plans for 24 sub-watersheds, the organization and strengthening of 149 POs, 71,300 hectares of tree and agroforestry plantations, 102 ASF units, five watershed management councils, and 149 microenterprises along with four pilot agroforestry value chain areas.
The bureau also claimed that the FMP contributed to at least a six percent increase in forest cover across all 24 sub-watersheds, with potential for further increases as plantation growth becomes more visible in satellite imagery.
It added that increased production volumes were observed from agroforestry plantations developed under the project.