Agroforestry Plantation Program (APP)

The Agroforesty Plantation Program (APP) is 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.

Eligible Criteria

• • For Public Land
    • With valid tenurial agreement with DENR e.g. Socialized Industrial Forest Management Agreement (SIFMA), Integrated Forest Management Agreement (IFMA), Community-Based Forest Management Agreement (CBFMA)
    • With approved Comprehensive Development and Management Plan (CDMP) / Indicative Management Plan (IMP) / Community Resource Management Framework (CRMF) and Five-Year Work Plan (FYWP).
  • For Private Land
    • With Certificate of Tree Plantation Ownership from DENR

Eligible Borrower

• • • Plantation operators/ tenure holders who are registered with the Securities and Exchange Commission (SEC), Department of Trade and Industries (DTI), Department of Labor and Employment (DOLE) or Cooperative Development Authority (CDA), Local Government Units (LGUs) People’s Organization (PO) and PO Federation with at least five (5) to forty thousand (40,000) hectares of open area.

Eligible Loan Purpose

• • Working Capital
  • Acquisition of machinery and equipment
  • Construction/Establishment of Facilities

Eligible Loan Projects

• • Plantation Development
  • Plantation Expansion
  • Plantation Maintenance and Protection
  • Acquisition of pre-harvest and post-harvest facilities e.g. processing plant, kiln
  • Harvesting of mature species
  • Establishment of facilities e.g. lookout tower, bunkhouse, water system, fire lines
  • Development of project site as eco-tourism destination

Eligible Species

• • Roundwood
  • Fuelwood
  • Woody Biomass
  • Bamboo
  • Rattan
  • Coffee
  • Cacao
  • Rubber
  • Other fruit-bearing trees such as but not limited to Mango, Lanzones, Pomelo

Loanable Amount

• • For regular loans, up to maximum of 80% of the total project cost
  • For LGUs, maximum of 90% of total project cost or winning bid price, whichever is lower.

Loan Tenor

• • Term Loan – shall be based on the projected cash flow but shall not exceed fifteen (15) years, inclusive of grace period. For acquisition of fixed assets and establishments of facilities, term of the loan shall be based on the projected cash flow but shall not be more than the economic useful life of the asset.
  • Credit Line – shall be based on the cash conversion cycle but not more than 360 days.

Interest Rate

• • Prevailing Market Rate

Grace Period

• • Up to 7 years, depending on the type of plantation

Collateral Security

• • Any or combination of the following:

1. 1. 1. Real Estate Mortgage
      2. Chattel Mortgage
      3. Assignment of Insurance or guarantee coverage
      4. Assignment of supply contract/receivables
      5. Continuing Suretyship (JSS) or Co-makership
      6. Holdout on deposit
      7. For LGUs, Deed of Assignment of specified portion of IRA
      8. 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 with DENR
    • Audited Financial Statements and Income Tax Returns for the last three (3) years duly stamped as received by the Bureau of Internal Revvenue (BIR)
    • Latest Business Permits (Mayor’s Permit and Barangay Permit)
    • CDMP/IMP/CRMF & FYWP for tenure holders
    • Business Plan for private landowners
    • Certificate of Tree Plantation Ownership from DENR (private landowners)
    • Endorsement Letter from DENR

Download brochure

For inquiries feel free to contact:

Erdie Leah Banzali
Program Development and Management II
(02) 818-9511 local 2349
elmbanzali@dbp.ph