DBP to offer lending facility to tree farmers

MANILA, Philippines - Owners and administrators of tree farms can take part in a lending program launched by a banking institution to help develop and sustain their tree plantations.

DENR Secretary Ramon Paje and Development Bank of the Philippines (DBP) president and CEO Gil Buenaventura signed recently a cooperation agreement to ensure the effectiveness of the DBP Tree Plantation Financing Program (TPFP), a credit facility for tree farm owners.

The DENR is lending its technical expertise to help the state-owned DBP in its lending program for the development of existing tree plantation projects.

TPFP aims to promote development and maintenance of tree plantations, and a planned approach in harvesting that would boost the country’s wood-based industries, assist communities improve their socio-economic conditions, arrest the rapid deforestation and reduce susceptibility of communities to natural disasters such as flooding and landslides.

“We commend the DBP for its decision to make TPFP an integral part of its corporate social responsibility,” Paje said.

The program applies to all existing tree plantations -reforestation, forest or industrial – with at least four-year-old standing trees in at least one percent of the plantation area of qualified private and public land consisting of five to 500 hectares of open, contiguous area with existing and valid tenurial agreements with the DENR.

Under the agreement, the DENR and DBP would jointly conduct ocular site inspection and verification to assess and validate the eligibility of the proposed project site; provide the needed information concerning the project, conduct valuation of tree plantations, growth and yield projections, and studies on estimated costs, expected economic benefits and returns; and assess the extent of project accomplishments.

Both the DENR and DBP would periodically monitor the status of the project and conduct performance review; address issues and concerns relative to the project; and promote and market the program.

The DBP’s primary role is to provide funding for tree plantation projects covered by the program.

“In providing assistance and technical support in the implementation of TPFP, the DENR will evaluate the suitability of project site and species to be planted within public lands to be covered by the program,” Paje said.