Plantation Cost Estimates

Journal of Environmental Science and Management 12(1): 42-67 (June 2009 )
ISSN 0119-1144
42
Activity and Cost Standards for Forest Development and Rehabilitation

in the Philippines
Antonio P. Carandang and Myrna G. Carandang
ABSTRACT
The study developed a spreadsheet model that automatically updates the different cost
components of forest development given a planting spacing and prevailing wage rate. It also
examined and refined the critical standard activities needed to ensure the success of forest
plantation development.
The costs of forest plantation development are mainly focused on operations and project
management. Operation activities include nursery operations comprising 15.0 % of costs on the
average, plantation establishment at 17.4%, plantation maintenance and protection at 49.8%,
and infrastructure at 4.7%, while project management constitutes 13.1%. The bulk of the cost
comes from labor ranging from 73 to 86% of the total operation costs. Forest development cost
is sensitive to prevailing labor wage rate in the locality and spacing. As to cost distribution, the
first year accounts for 55% of the total cost, 26% for the second year and 19% during the third
year of forest plantation development.
Lessons from the past forest rehabilitation efforts showed that aside from the proper site
species matching, enough attention should be given to proper maintenance and protection to
ensure that the investments in forest plantations would succeed.
Keywords: forest plantation development, nursery operations, labor wage rate, planting spacing.
INTRODUCTION
The Revised Master Plan for Forestry
Development in the Philippines (DENR and FAO
2003) stated that one of the ills confronting forestry
is the lack of new investments in the sector, primarily
from private funds. In addition, the older industry
players are continuously exiting out of business.
Hence, forest industry in the Philippines is
viewed as a sunset industry, compared to call
centers and e-commerce as sunrise industries.
Some of the reasons forwarded include the weak
and unstable policy environment in the country
with respect to forest utilization and the prohibitive
costs of forest investments coupled with attendant
high risks of such business ventures.
Indeed, the costs of forest development in the
country tremendously increased through the
years. Recent estimates by PICOP Resources
show that they need around PhP 40,000 ha-1 of
fast-growing tree plantation developed up to third
year of establishment (Tumambing 2008) based
on a PhP 200 prevailing wage rate in the uplands
of Surigao del Sur. Bantay Kalikasan Foundation

of ABS-CBN is using an estimated cost of PhP
78,000 ha-1 within the first three years in their
plantation establishment activities and for planning
purposes (Mendoza 2008) based on a PhP 300 d-1
labor wage rate. The UP Land Grant Project estimates
that for every ha of plantations developed, the
University spends around PhP 75,000, for a 2m x
3m spacing on the average including administration
and project management costs under a PhP 270
wage rate d-1 (Malabrigo 2008). The rationale for
these high costs is the emphasis given to
maintenance and protection activities that constitute
the bulk of the costs. The above costs vary
depending on the implementer, the labor costs in
the locality, species used and most importantly,
spacing. As observed, there are many estimates
of forest development costs that are being used
by different agencies.
The Department of Environment and Natural
Resources (DENR) is still using the cost standards
Journal of Environmental Science and Management Vol. 12. No. 1 (June 2009)
provided by Memorandum Circular (MC) 200019 and Department Administrative Order (DAO)
2000-57 as adjusted depending on the site and
funding support2. The project costs contained in
the above guidelines that were implemented
since 2001 are already outdated and causing
confusion with respect to interested forest
developers. These costs were primarily based
from MC 04, 1990 updating of cost estimates for
reforestation contracts and DAO 31, of 1991 that
revised the guidelines for contract reforestation.
An updated costing would be very useful in
upgrading the costs of project activities. This is
deemed critical in the success of the future forest
development projects planned by the sector. The
detailed costs and activity standards provided
here would also be useful in future DENR
projects with similar components.
the revised plan of activities. However, these

entailed additional costs to POs that the DENR
compensated by giving additional funds to POs
as provided in their approved revised annual
work and financial plan (AWFP).
OBJECTIVES
The following are the objectives of the study:
to develop a spreadsheet model that would
As observed in the Forestry Sector Project II

(FSP II) 3, many sites failed in performance due
to low intensity of plantation maintenance and
protection activities as provided in the previous
guidelines.
In view of the foregoing observations, all
peoples organizations (POs) implementing JBIC
-funded watershed subprojects under FSP-II were
instructed to intensify maintenance and protection
activities for all their plantations using the
updated costs pursuant to MC 2000- 19 and DAO
2000-57. Among the critical activities identified
for intensification are as follows:
Complete ring weeding and spot cultivation
with at least four maintenance passes yr-1

were required for all plantations except for 2
x 3 m spacing that needs only three passes;
43
automatically compute for the different cost

components of forest development given a
planting spacing and prevailing wage rate in
a locality:
to update the costs of forest development
activities based on current costs and prices
of labor and materials;
to refine the activity standards for forest
development;
to examine the critical activities needed to
ensure the success of forest development;
and
to provide detailed updated costs for use in
the formulation of future forest development
plans in the country.
METHODS
Secondary Data gathering
Several secondary data about previous costs
and prices and forest rehabilitation lessons were
obtained from the DENR and its website, PICOP,
UP Land Grant Project, Center for International
Forestry Research (CIFOR) Project, Bantay
Kalikasan Foundation and other offices and agencies.
Primary Data Gathering
Mandatory replanting for all areas with less
than 95% survival in the first and second

years; and,
Fertilization with two passes of application
each year during the beginning and middle of
the rainy season.
These adjustments were observed to produce
good results for those who dutifully adhered to
3
The necessary and critical forest activities

were validated from various sites in the Philippines
that included detailing of such activities and the
required maintenance passes in order to achieve
successful plantation development. Costs were
updated through a survey of recent prices of
seeds, fertilizer, plastic bags; other materials
needed and labor costs based on prevailing wage
MC 2000-19 is a guideline for determining comprehensive site development costs for uplands projects while DAO 2000-57 is a cost guideline
for mangrove projects of the Forestry Sector Project of the DENR of which one of the Authors provided the baseline studies.
44
Activity and Cost Standards for Forest Development and Rehabilitation in the
Philippines
rates in the country. For purposes of this study,

an average labor cost for the country was
provided. Nevertheless, the spreadsheet model
developed in the study has automatic links to cell
specifying the wage rate. Hence, once a prevailing
wage rate is entered in a region or locality, the
model automatically recalculates the forest
development costs.
Spreadsheet Model Development
A spreadsheet model was developed to capture
the different forest development activities with
automatic links to labor wage rate, fertilizer costs
and the summary costs for the activities like
nursery operations, plantation establishment, and
protection and maintenance, including project
management costs.
Refinement of Prevailing Cost and Activity
Standards
This study also endeavored to examine the
lessons learned from several forest development
projects done in the past like the FSP 1 (Contract
Reforestion) and FSP II (community based forest
management-CBFM) and also derived critical
lessons from the success and failures of some
forest development and rehabilitation projects in
Regions 3, 7 and 11, as visited by the authors in
conducting a similar study in 2003-2004. There
were additional sites visited to refine and update
the cost and activity standards, namely: Itogon
Watershed Subproject, a CBFM project in
Itogon, Benguet; Vibannara CBFM project in
Ilagan, Isabela; UP Land Grant Project in Real
Quezon; and Saug Watershed Subproject in
Saug, Davao del Norte.
RESULTS
Spreadsheet Model
The developed Spreadsheet Model captures
the different forest development activities with
automatic links to labor wage rate, fertilizer costs
and the summary costs for the activities like
nursery operations, plantation establishment, and
protection and maintenance, including project
management costs.
The cost tables generated can be directly

used by planners in computing for per ha cost of
forest plantation. The columns in each table provide
actual guides to plantation developers on the
standard activities as well as production goal per
ha of plantation and the material inputs required.
These also guide the developers in determining
the number of workers to be hired as well as the
expected production standard per man day of
work.
The Spreadsheet Model can be run using any
reference wage rate. In this study, a reference
wage rate of PhP 282 d-1 was used. In the Philippines,
the prevailing wage rates for the agriculture or
plantation workers sector ranges from PhP 184 to
PhP 310 d-1. The cost standards given in the cost
tables can be adjusted by using the appropriate
wage rate in a given area as well as the plantation
spacing required for a desired plantation product.
The computation can be derived from Table
1. Change the labor wage rate cell at D35 by an
updated rate in the area where the plantation
would be established. The spacing for each
individual cost table (Table 2 to Table 17) can
be changed by inputting the desired spacing on
the cells located at the upper right hand side of
each table and the model automatically recomputes
the planting goal per ha, thus, automatically
adjusting the activity costs.
Forest Development Components
Among the various forest development
activities examined under this study are as follows:
a. Reforestation or establishment of forest tree
plantations using common fast growing
species like gmelina, falcata, and bagras,
among others, under 2 x 3, 4 x 4, and 5 x 2
m spacings
b. Agroforestry which is fruit tree base (e.g.,
mango, durian and marang) under 10 x 10 m
spacing
c. Fruit tree plantations involving small fruit
trees like coffee, kalamansi, guyabano,
cacao, and citrus, among others
d. Assisted natural regeneration
e. Bamboo plantation like kawayan kiling
raised in nursery.
species
Rhizopora spp.
1st yr =
App.3 x 4
2x2
2,079
86,274
14.56
54.63%
10,599
6,774
6,865
4,246
11,828
3,906
2,562
8,636
2,501
2,717
2,948
1,625
9,461
5,800
3,728
Notes:
Labor costs=
282 pesos/day
1. The cost estimates were updated using 2007 prices.
2.
FGS - fast growing species, SGS - slow growing/indigenous species
<a - Large fruit trees like mango, durian and marang.
<b - Small fruit trees like kalamansi, guava, guyabano, etc., can also be used for agroforestry plantations
<c - Nursery operations for direct planting include gathering of propagues and storage to temporary depot.
(with nursery)
Mangrove Enrichment Planting <c
Sum for each operations
Percentages of each operations:
Yearly Precentage of Costs
Other mangrove
(Direct planting) <c

Mangrove Plantation
1.5 x 1.5
2x2
2x2
Nipa
Rhizopora spp.
Rhizopora spp.
2x3
5x2
4x4
10 x 10
2x2
4x4
appx 5 x 5
5x5
appx 5 x 5
5x5
5x5
NA
FGS
FGS
FGS
Fruit tree-based
w/ fuelwood
Pure fruit trees
Assorted
Bamboo
FGS/SGS
Rattan
Rubber
Mangrove Plantation
Fruit Tree Plantation <b

Assisted Natural Regeneration
Bamboo (nursery raised)
Enrichment Planting
Rattan Plantation
Rubber Plantation
Timber Stand Improvement
Mangrove Components
Nipa Plantation
Mangrove Plantation
(Direct planting)<c
Agroforestry <a
Reforestation
Upland Components
1,629
103,083
17.39
2nd yr =
10,383
7,102
5,406
5,480
9,770
5,198
3,728
9,236
3,828
5,655
5,112
3,634
13,528
8,197
5,198
7,104
299,224
50.49
26.05%
16,011
24,616
15,417
16,276
26,408
21,902
23,629
15,170
10,478
16,406
14,490
5,198
37,958
29,535
18,626
783
26,614
4.49
3rd yr =
1,424
783
1,383
783
2,651
2,651
771
2,651
2,651
771
771
583
2,651
2,651
2,651
44,179
45,166
33,431
30,803
58,255
38,705
35,293
41,048
22,377
29,382
26,820
12,890
73,138
53,110
34,734
Total
cost
(PhP)
1,739 13,336
77,472 592,667
13.07 100.00
19.32%
5,762
5,891
4,361
4,018
7,599
5,049
4,603
5,354
2,919
3,832
3,498
1,849
9,540
6,927
4,530
Table 1. Updated cost estimates for forest development activities per ha (2007).
Components
Species
Spacing
Operation Costs (PhP)
Project
(M)
Nursery
Plantation
Maintenance Infrastructure management
cost (PhP)
operation establishment and protection
45
46
Philippines
f. Enrichment planting
g. Rattan plantations which include palasan,
limuran, and sika, among others.
h. Rubber plantation
i. Timber stand improvement
j. Nipa plantation under 2 x 2 m spacing
k. Mangrove plantation involving the direct
planting technique using the Rhizopora Spp.
at 2 x 2 m spacing
l. Mangrove plantation involving the direct
planting technique using the Rhizopora Spp.
at 1.5 x 1.5 m spacing
m. Mangrove plantation involving species with
small propagules or seeds whose planting
materials are raised in the nursery; and,
n. Mangrove enrichment planting.
Forest Development Costs
The costs for all forest development activities
considered in this study are summarized in Table
1. These costs were based on PhP 282 per day
reference labor wage rate. The costs are divided
into two major components namely, the operations
costs and the project management costs.
Operations costs include nursery activities,
plantation establishment, plantation protection
and maintenance, and the costs of infrastructure
needed for the project. On the other hand, project
management costs constitute the overhead costs
in implementing forest development activities.
On the average, nursery operations share 15.0%
of costs, plantation establishment 17.4%, plantation
maint enance and pr otection 49.8%, and
infrastructure 4.7%, while project management
constitutes 13.1% (Table 1). The bulk of these
costs come from labor ranging from 73 to 86% of
the total operations costs. Hence, total forest
development cost is sensitive to prevailing labor
wage rate in the locality. It was also noted that
the total cost of forest plantation development is
sensitive to spacing. For example, by considering
different spacings, the total costs of reforestation
is only PhP 36,760 ha-1 for the first three years of
operations under 4 x 4 m spacing while the costs
would be PhP 74,039 under a 2 x 3 m spacing
(Table 1).
As to the average percentage distribution of
costs for the first three years of operations, the
first year accounts for 55% of total costs, with 26
and 19% for the second and third year, respectively.

The first year is heavy in costs since the bulk of
the operations/activities are being conducted
during this period.
Standard Activities and Costs in Forest
Plantation Development and Rehabilitation
The following are descriptions of standard
activities needed for a successful forest plantation
development and rehabilitation.
a. Survey, Mapping and Plant at io n
Development Planning (SMP)
This activity includes the purchase and
obtaining relevant maps in 1:10,000 scale or
lower, plotting on the map the indicative boundaries
of prospective area, reconnaissance of the area,
IEC and observance of protocols, actual survey
with land use samplings, socio-economic profiling
and mapping of all information gathered. This is
followed by area development planning which
includes matching of the area conditions with
appropriate species (based on the objectives of
the project). The plan is finalized through proper
consultations with relevant stakeholders. It includes
indicative location of basic infrastructure like
nursery, seedling depot, firelines, water system, etc.
By rule of thumb, the bigger the area, the lower
the overhead cost ha-1 for SMP. The FSP used
PhP 641.00 ha-1 as basis for contracting this
activity in 1995-1997 for at least 2,000 ha per
contract. Current cost of this activity falls around
PhP 1500.00 ha-1. The above activities fall under
the overhead costs for the project.
b. Nursery Location and Establishment
Based on the FSP experience, project
implementers can really save a lot in the cost of
planting materials if they produced the same
from their own nurseries. The FSP prescribed the
need for 1 permanent nursery for every 400 ha of
plantation, with temporary sub-nurseries as
needed. However, the FSP POs were allowed to
buy seedlings from commercial nurseries, especially
during start-up years when their own nursery
productions could still not cope with their seedling
requirements. The activity includes verification
of the site as indicated in the plan, topography,
47
Table 2. Cost estimates for common forest tree plantations (Gmelina, Mangium, and Falcata; 2 x 3 m
spacing).
Notes:
* - Maintenance includes cultivation, weeding, fertilization, hardening, grading, and other activities in the nursery.
** - Estimated nursery establishment cost is P200,000.00
48
Philippines
spacing).
Notes:
accessibility, water sources, and available area,
among others. The estimated nursery establishment
cost is around PhP 200,000 each.
c. Production of Planting Materials
The activities in the production phase include
procurement/handling of quality or certified
seeds, nursery bed preparation, sowing of seeds,
gathering and preparation of soil, potting of
seedlings, preparation of potbeds and pot
arrangements, maintenance of seedlings (i.e.
cultivation, weeding, fertilization, hardening,
grading) and other activities in the nursery.
Fertilizer application involves putting a small
pinch per plastic bag (5 gm/bag). The costs of
tools and implements used in the nursery are also
part of the production phase. The nursery operations
costs for each forest development component are
provided in Table 1. The standards for nursery
activities are presented in Tables 2-17 that provide
the costs for all necessary activities with the
production standards ha-1 provided under the
columns of goal ha-1 while the required labor in
terms of man days for a given activity are
presented under the column of man days required.
d. Plantation Establishment
The ideal time for plantation establishment is
at the start of rainy season when the soil is
already wet up to the half m deep or more and
until about two-thirds of the season when some
rains are still expected towards its tail-end. The
timing is important to stabilize the condition of
the transplanted seedlings in time for dry season
as well as to accommodate the required
maintenance passes to improve survival.
Plantation establishment entails the following
activities: brushing that requires clearing a strip
2 m wide along the planting line; staking using
bamboo or wooden poles; hole digging of
appropriate depth; seedling transport/hauling
from nursery or temporary seedling depot to a
suitable location in the plantation site; planting
which entails removal of seedling from the plastic
bag using a sharp knife to slice the plastic without
disturbing the soil, and the costs of tools and
materials in the said plantation establishment. The
plantation establishment costs for each forest
49
development component are also provided in

Table 1. The production standards or average
production rate per activity are provided in the
component or activity columns in Tables 217
that provides the costs for all necessary activities
with the targets, and standard material inputs and
labor requirements in appropriate columns.
e. Plantation Protection and Maintenance
One of the most important determining factors
in the success of forest plantation development is
the amount of time and efforts spent in plantation
maintenance and protection. This constitutes the
bulk of costs in this investment. The first three
years of forest plantation establishment requires a
lot of maintenance passes involving different
activities as follows:
Ringweeding and spot cultivation- Ringweeding
and spot cultivation of at least 1 m radius and

at least 0.5 m cultivation from the base of the
seedling is required. This is necessary to
remove suckers of grasses and loosen the
soil. At least three passes are required during
the first year apart from the initial site
preparation activities during the establishment
phase. Another 3 passes are required during
the second year and another 2 passes in the
third year. After the third year, plantation is
now capable of competing with weeds and
may require no more or minimal maintenance
activities in the fourth year and beyond. As
practiced, however, it is necessary to make
rounds of maintenance or cleaning operations
or inspection beginning the fourth year and
henceforth to ensure that no clinging vines
are able to constrict the growth of trees.
Replanting- After the dry season or beginning
the second year, it is necessary to inspect and
assess the survival of seedlings. All dead
spots need to be replanted. As provided in
MC 19-2000 and DAO 2000-57, 20% of total
number of seedlings ha-1 can be targeted for
replanting. Lower replanting rate would
mean a lot of savings to the plantation owner,
hence, the need to insure high survival rate
by not planting past two-thirds of the planting
season and dutifully following the maintenance
program.
Fertilizer application- Fertilizer application
Philippines
50
supplies the necessary nutrients to ensure the

growth of seedlings. In areas where soil fertility
is relatively high, fertilizer application can be
forgone, hence, additional savings for plantation
owner.
The plantation protection and maintenance
costs for each forest development component are
again provided under Table 1. The production
standards or average production rate per
maintenance and protection activity are also provided
in the component or activity columns in Tables 2
-17 providing the costs for all necessary activities
with the targets, material inputs and labor
requirements as shown in appropriate columns.
f. Plantation Infrastructure
During the forest development planning
stage, it is important to consider the infrastructure
needed by a growing plantation and the costs in a
day to day and long term operations of the project;
e.g., roads, nurseries, bunkhouses, watch towers,
firelines, etc. It is necessary for every major
infrastructure to be costed except access road
since the cost varies from site to site. As
experienced in many reforestation projects of the
government and the FSP POs, access roads already
exist in many sites. In cases where this component
is needed, a separate cost computation should be
made during the planning stage and must be
integrated in the overall project costs.
As mentioned earlier, part of the forest
plantation establishment costs is the cost of the
infrastructure that by nature can be shared among
several ha or parcels of plantation. A central
nursery, for example, can service at least 400 ha
or more of plantations. In the costs provided in
MC 2000-19, the cost of nursery establishment
per ha is the total estimated cost of nursery
establishment divided by 400. Among the needed
plantation infrastructures that are costed in this
report are as follows:
Nursery facilities- one nursery for every 400
ha.
Graded trail this is a labor intensive activity,
hence, the recommended density per ha is 50

m with a 1 m wide clearance. This is strategically
located consisting of constructed steps along
sloping ground and is part of the trail system

or foot paths used by the workers in traveling to
and from the plantation sites and nursery.
Fireline construction and maintenance- A
fireline is a strip of open areas cleared of
vegetation (at least 5 m width) primarily
constructed to prevent the transfer of forest
fire from one portion of the plantation to
another portion. Ideally, every 10 ha of
plantation must be secured by a fireline. This
can be substituted by a vegetative fire break
like strips of banana plantations along gullies
and other appropriate locations. This strip
must also be regularly cleaned of dry leaves
and other weed vegetation.
Bunkhouse- A bunk house is necessary to
house plantation workers during peak planting
season and during summer months when the
chance/incidence of forest fire is at the
highest. This would also give ample rest time
for stay-in workers during the night. Ideally,
one (1) bunkhouse that is able to house 1015 laborers is necessary for every 200 ha of
plantation. This temporary structure may be
integrated in the nursery and in lookout towers.
Lookout tower Fire-prone areas need to
establish lookout towers manned by
dedicated people during fire prone months on
top of regular patrol works. There must be at
least 1 unit of fire tower constructed for
every 200 ha.
The infrastructure costs for each forest
development component are given in Table 1
while the details are provided in Tables 2-17 and
are distributed in per ha cost of developing forest
plantations.
g. Project Management
Project management costs constitute the
overhead costs of managing the implementation
of forest development projects. The project staff
is not included in the payroll of daily laborers
and may comprise at least 10-15% of total
operational costs of forest plantation development.
These costs which are provided in Tables 2-17
include the overall supervisory activities and the
regular monitoring and assessment of plantations
by project management.
51
spacing).
Notes:
52
Philippines
Table 5. Cost estimates for agroforestry plantations (Mango-based w/ fuelwood, 10 x 10 m & 2 x 2 m

Spacing , respectively).
Notes:
- Spacing for mango is 10 x 10 m while that of fuelwood is 2 x 2 m with only 2 strips in between rows of mango.
53
Table 6. Cost estimates of fruit tree plantations (Pure fruit trees; e.g., coffee, cacao, kalamansi,
guyabano, etc., 4 x 4 m Spacing).
Note:
54
Philippines
Table 7. Cost estimates for assisted natural regeneration (5 x 5 m Approximate Spacing of

Supplemental plantings).
Notes:
Table 8. Cost estimates for Bamboo (5 x 5 m spacing).
Notes:
55
56
Philippines
Critical Factors in Investment for Forest

Plantations
FSP experience
For peoples organizations, the importance of
community organizing and its long term continuity
even beyond the stage where there is assistance
from the government cannot be overemphasized.
The rigors of what they are doing needs to be
grounded from a common vision about social and
economic development as well as their personal
benefits from their toil. A lot of sacrifice needs to
be given up front for benefits that may accrue in
later part of the tenure. Otherwise, the POs would
not reach that point where the organizations are
still intact after a few years. As to the technical
success of plantations, those who ventured in
observing proper maintenance and protection
even to the extent of exceeding the costs provided
by the government in the first year reaped benefits
in later years. The experience is that if you do
well in the first year, doing the required
maintenance operations, the second and third
years of plantation maintenance would relatively
be easier than those who did not do so. By the
third and fourth year, a well-maintained plantation
would have robust trees with strong crowns almost
topping all weed vegetations in the area.
CIFOR study
In 20032004, CIFOR through a group of
Filipino scientists/researchers, conducted a study
on lessons learned from almost a century of forest
rehabilitation in the country. There were 48 forest
rehabilitation projects studied by the team in
three regions of the country; namely, Region 3
(Central Luzon), Region 7 (Central Visayas) and
Region 11 (Southern Mindanao). At the operations
level, each project surveyed possesses unique
conditions that are either facilitating or constraining
the success of a given forest rehabilitation effort.
The survey was able to list a total of 103 lessons
most of which describe the needed strategy in
order to be successful. These results range from
some minor technical lapses such as site species
matching to financial problems like lack of funds
or delays in its release and to more complex ones
such as social, political and institutional factors.
However , it was appar ent that the factor s
contributing much to the failure of many projects

are social and institutional in nature. Even with
enough funds, some projects did not perform
well because of lack of consideration to social
and institutional processes that very well affected
the operations of a project.
The very wide variations in the responses is
an indication that there is really no single formula
that can ensure the success of a given reforestation
program in the Philippines. It really depends on
the situation of the implementers and the condition
of the project sites. Thus, there is a need for
planners and implementers to consider the unique
situation of a given project site and adopt strategies
that would work both with people and with the
biophysical attr ibutes of the ar ea. T he
implementers have to fit the strategies with the
social settings and must endeavor to work out
acceptable solutions in order to attain the much
needed cooperation of local communities and
other stakeholders. A given implementer usually
learns the hard way by recognizing the problems
at the middle or even at the tail end of the project
life. Nevertheless, some general lessons and
recommendations derived from the study focused
on major actors in forest rehabilitation as follows:
a. For the government sector particularly
DENR- T echnical lapses in pr oject
operations such as site species matching,
lack of maintenance, etc. can result to costly
processes and outcomes. DENR must ensure
that every aspect of operations is technically
appropriate, following the required technical
specifications and standards. The commitment
of both project management and rank and
file employees is central to the success of
the project.
b. For peoples organizations- Community
organizing and technical capability are central
to successful PO-implemented forest
rehabilitation. The members derive their
strength on the strength of the organization.
Hence, organizational strengthening must be
foremost in the minds PO officers and
members as well as those who are assisting
the POs. The financial stability is the key to
POs survival, hence, internal conflicts on
financial matters must be minimized if not
totally avoided. Good financial management
57
Table 9. Cost estimates for enrichment planting (Gmelina, Mangium, Falcata; 5 x 5 m Approximate
Spacing).
Notes:
Philippines
58
and transparency in financial transactions

are core values to be always observed.
c. For Private Individuals, Groups or CorporationsPrivate forest developers either in forest or
private lands face uncertainties in the viability
of their investments because of uncertainties
of markets and high cost of plantation
establishment, maintenance, protection and
harvests. Hence, very few invest in large-scale
plantation establishment. They must be
allowed and assisted to plant other high
value tree crops in their area and must be
given liberal credit windows for their business.
Incentives for planting various indigenous
species for biodiversity enhancement must
be provided as well as for maintaining these
areas for subsequent planting of climax species
where appropriate. Private tree farmers must
also have access on incentives provided
under Clean Development Mechanism
through carbon trading or other mechanisms
espoused by Kyoto Protocol or any other
environmental enhancement facilities available.
This would require the assistance of the
government as well as NGOs who are privy
to these systems.
CONCLUSIONS
The costs of forest development are divided
into two major components namely, the operations
costs and the project management costs. On the
average, nursery operations constitutes 15.0% of
costs, plantation establishment 17.4%, plantation
maint enance and pr otection 49.8%, and
infrastructure 4.7%, while project management
constitutes 13.1% for a total of 100%. The bulk
of these costs come from labor that ranges from
73 to 86% of the total operations costs.
Forest development cost is sensitive to
prevailing labor wage rate in the locality. It was
also noted that the total cost of forest plantation
development is sensitive to spacing. For example,
by considering different spacing, the total costs
of reforestation is only PhP 36,760 ha-1 for the
first three years of operations under 4 x 4 m spacing
while the costs would be PhP 74,039 under a 2 x
3 m spacing.
On the average percentage distribution of costs
for the first three years of operations, the first

year accounts for 55% of total costs, the second
year with 26 %, while the third year accounts for
19%. The first year is heavy in costs because this
is when the bulk of operations activities are
conducted.
From a century of forest rehabilitation in the
country, different lessons can be learned. For
projects implemented through CBFM, the
importance of community organizing and its long
term continuity even beyond the stage when there
is assistance from the government cannot be
undermined. The POs who ventured in observing
proper maintenance and protection even to the
extent of overshooting the costs provided by the
government were more successful. The experience
taught them that if you start right in the first year,
the second and third years of plantation maintenance
would relatively be easier.
In the CIFOR study, there are many facilitating
or constraining factors of success especially at
the project level. Among the problems encountered
by projects range from some minor technical
lapses such as site species matching to financial
problems such as lack of funds or delays in its
release and to more complex ones such as social,
political and institutional factors. However, it
was apparent that the most constraining factors
were related to social and institutional aspects
within the project sites. Hence, this must be
addressed by project proponents even at the
planning stage. The enormous number of lessons
documented by the project is an indication that
there is really no single formula that can ensure
the success of a given forest rehabilitation program
in the Philippines. It really depends on the situation
of the implementers and the condition of the project
sites.
RECOMMENDATIONS
The varied situation prevailing in many forest
plantation development sites in the country
necessitates planners and implementers to
consider these unique situations and adopt strategies
that would work both with people and with the
biophysical attributes of the area. The implementers
have to fit the strategies with the social settings
and must endeavor to work out acceptable solutions
Table 10. Cost estimates for rattan plantation (5 x 5 m spacing).
Notes:
59
60
Philippines
Table 11. Cost estimates for timber stand improvement.
Notes:
* - Supplemental planting is conducted in areas where natural regenerations are lacking or very irregular.
61
Table 12. Cost estimates for rubber plantation (5 x 5 m spacing).
Notes:
in order to attain the much needed cooperation of

local communities and other stakeholders.
The cost tables generated in this study can be
directly used by planners in computing for per ha
cost of forest plantation. These provide actual
guides to plantation developers on the standard
activities as well as production goal ha -1 of
plantation and the required material inputs. Further,
the developers can be guided in determining the

number of workers to be hired as well as the
expected production standard per man day of
work.
The use of the Spreadsheet Model for adapting
costs to a local situation is recommended.
Appropriate reference wage rate must be used in
a given area and desired plantation spacing. In the
62
Philippines
Table 13. Cost standard for nipa plantation (2 x 2 m spacing ).
63
Table 14. Cost standard for mangrove plantation, direct planting (B. lalaki, B. babae, B. bato 2 x 2 m
spacing).
64
Philippines
Table 15. Cost standard for mangrove plantation, direct planting (B. lalaki, B. babae, B. bato 1.5 x 1.5
m spacing).
65
Table 16. Cost standard for mangrove plantation with nursery (Pagatpat, Potatan, Tanggal, etc.) 2 x 2 m
spacing).
66
Philippines
Table 17. Cost standard for mangrove enrichment planting through direct planting of Rhizopora Spp.
Philippines, the prevailing wage rates for the

agriculture or plantation workers sector ranges
from PhP 184 to 310 d-1.
REFERENCES
Bukidnon Forests Incorporated. 1994. Plantation Manual.
Carandang, A. P. 2000. Updated Subproject Costings,
DENR-JBIC Watershed Rehabilitation Subprojects.

Consultancy Report for Forestry Sector Project.
Chokkalingam, U. et. al. 2006. One Century of Forest
Rehabilitation in the Philippines: Approaches,
Outcomes and Lessons. CIFOR, Bogor, Indonesia.
DENR, 1991. Department Administrative Order No.
31, series of 1991. Revised Guidelines for Contract
Reforestation
DENR, 2000. Department Administrative Order 200057. Guidelines Governing the Implementation and
Management of Mangrove Subprojects Under
The Forestry Sector Project.
DENR & FAO, 2003. Revised Master Plan for Forestry
Development in the Philippines.
DENR, 2000. Memorandum Circular 2000-19.
Guidelines Governing the Update of Costings for
DENR-FSP Watershed Subprojects Under JBIC
Funding.
DENR, 2000. Memorandum Circular 04, series of
1990. Updating of Cost Estimates for Reforestation
Contracts and Provi ding Guidelines for
Implementing Cost-Saving/Low Cost Approaches,
Scheduling Disbursements and Establishing
Duration of Contracts.
ERDB. 1989. Reforestation Species: Bakauan Babae,
Bakauan Lalaki and Bakauan Bato. Research
Information Series on Ecosystems- RISE. ERDB,
College, Laguna.
ERDB. 1990. Reforestation Species: Bagras. Research
Information Series on Ecosystems- RISE. ERDB,
College, Laguna.
ERDS. 1994. Mangrove Regeneration and Management.
Fisheries Sector Program. ERDS. Region IV-A.
DENR.
Malabrigo, P. 2008. Pers. Comm.
Mendoza, M. 2008. Pers. Comm.
Tumambing, D. 2007. Pers. Comm.
ABOUT THE AUTHORS

Antonio P. Carandang, PhD., Assistant Professor,
Department of Social Forestry and Forest
Governance, College of Forestry and Natural
Resources, UPLB.
Myrna G. Carandang, Ph.D., Associate
Professor, Institute of Renewable Natural
Resources, College of Forestry and Natural
Resources, UPLB.
67

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Journal of Environmental Science and Management 12(1): 42-67 (June 2009 )

Activity and Cost Standards for Forest Development and Rehabilitation

of Surigao del Sur. Bantay Kalikasan Foundation

the revised plan of activities. However, these

As observed in the Forestry Sector Project II

with at least four maintenance passes yr-1

automatically compute for the different cost

Mandatory replanting for all areas with less

than 95% survival in the first and second

The necessary and critical forest activities

rates in the country. For purposes of this study,

The cost tables generated can be directly

(Direct planting) <c

Fruit Tree Plantation <b

and 19% for the second and third year, respectively.

development component are also provided in

and spot cultivation of at least 1 m radius and

supplies the necessary nutrients to ensure the

hence, the recommended density per ha is 50

sloping ground and is part of the trail system

Table 5. Cost estimates for agroforestry plantations (Mango-based w/ fuelwood, 10 x 10 m & 2 x 2 m

Table 7. Cost estimates for assisted natural regeneration (5 x 5 m Approximate Spacing of

Critical Factors in Investment for Forest

contributing much to the failure of many projects

and transparency in financial transactions

for the first three years of operations, the first

Table 11. Cost estimates for timber stand improvement.

Table 12. Cost estimates for rubber plantation (5 x 5 m spacing).

in order to attain the much needed cooperation of

the developers can be guided in determining the

Table 13. Cost standard for nipa plantation (2 x 2 m spacing ).

Philippines, the prevailing wage rates for the

DENR-JBIC Watershed Rehabilitation Subprojects.

ABOUT THE AUTHORS

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