AGROFORESTRY

PLANTATION PROGRAM (APP)

Development Bank of the Philippines

AGROFORESTRY
PLANTATION PROGRAM
a credit assistance program for the
development, expansion, harvesting,
processing, maintenance and
protection of industrial forest-based
plantations in qualified private and
public land consisting of at least five
(5) to forty thousand (40,000) hectares
of open area.
 PUBLIC LAND PRIVATE
With valid Tenurial Agreement
LAND
With Certificate of Tree
(SIFMA,IFMA,CBFMA) Plantation Ownership from
DENR
ELIGIBLITY With approved
CDMP/IMP/CRMF & FYWP
CRITERIA SIFMA – Socialized Industrial Forest Management Agreement
IFMA – Integrated Forest Management Agreement
CBFMA – Community-Based Forest Management Agreement
CDMP – Comprehensive Development and Management Plan
IMP – Indicative Management Plan
CRMF - Comprehensive Resource Management Framework
FYWP – Five Year Work Plan

ELIGIBLE Plantation operators, Tenure holders, LGUs, People’s Organization and PO

Federation who are registered with SEC, DTI, DOLE, or CDA with at least five (5)

BORROWER to forty thousand (40,000) hectares of open area.

ELIGIBLE LOAN ELIGIBLE SPECIES
PURPOSES
 Roundwood  Rattan
Working Capital
 Fuelwood  Coffee

Acquisition of machinery  Woody Biomass  Cacao

and equipment
 Bamboo  Rubber

Establishment of  Other fruit bearing trees

Facilities
 ELIGIBLE PROJECTS
 Plantation Development
 Plantation Expansion
 Plantation maintenance and protection
 Acquisition of pre-harvest and post-harvest
Equipment
 Harvesting of mature species
 Establishment of Facilities
 Development of project site as eco-tourism
destination
 LOAN FEATURES
Maximum 80% of the Total Project Cost (TPC)
LOAN AMOUNT For LGUs, maximum of 90% of TPC or winning bid price.
Term Loan – Based on projected cash flow but shall not exceed 15
years, inclusive of grace period
TENOR
Credit Line – Based on the cash conversion cycle but not more than
360 days.

GRACE PERIOD Up to maximum of 7 years, depending on the type of plantation.

INTEREST RATE Prevailing Market Rate
MODE OF Lump sun or staggered releases in accordance with the
RELEASE progress/accomplishments of the financed project.
 TERMS & CONDITIONS
 Borrower shall make DBP its major depository bank
and shall open accounts as follows:
 Debt Service Payment Account;
 Sinking Fund Account;
 Operating Account
 For plantation development of roundwood, there
should be existing 4-year-old standing trees in at
least 1% of the total area, 6-year-old standing trees
for Rattan plantation.
 Borrower should open a sinking fund where 1% of
the annual gross income based on the Audited
Financial Statement will be deposited annually.
 TERMS & CONDITIONS

 Borrowers are highly encouraged to plant native

trees in the area maintained for biodiversity.
 Management Plans (CDMP/IMP/CRMF)
submitted shall have at least 10 years of
effectivity.
 Insurance cover in all insurable assets endorsed
in favor of DBP.
 ACCEPTABLE COLLATERALS
 Real estate mortgage
 Chattel Mortgage
 Assignment of Insurance or guarantee coverage – PCIC or other
insurance companies acceptable to DBP
 Assignment of supply contract/receivables
 Continuing Suretyship (JSS) or Co-makership;
 Hold-out on deposit
 Deed of Assignment of specified portion of IRA, for LGUs
 Other security arrangements acceptable to DBP
 DOCUMENTARY REQUIREMENTS
Basic Requirements
 Letter of Intent
 DBP Application Forms
 Photocopy of valid government-issued ID of the
principal or authorized signatory
 Certified True Copy of Transfer Certificate of Title
(TCT), or Title Lease Agreement, or Tenurial
Agreement
 Audited Financial Statements and Income Tax
Returns for the last three years, duly stamped by BIR
 Latest Business Permit
 CDMP/IMP/CRMF&FYWP/Business Plan
 Certificate of Tree Plantation Ownership from DENR
(Private Land)
 Endorsement Letter from DENR
PRE- & POST RELEASE REQUIREMENTS

Pre-release requirements for harvesting related

projects
 Cutting and transport permit from DENR, if
applicable
 Market Agreement

Pre-release requirements for acquisition of wood

processing plant
 Wood processing plant permit from DENR
 Market Agreement

Post-release requirements for plantation development

 Borrower to secure an insurance coverage from PCIC
 Annual Accomplishment Report
Thank you.