Davao Region accounts for nearly 29% of Mindanao’s investment areas, putting forest protection, ancestral domain rights, and community participation in the spotlight
DAVAO CITY (November 6) — More than 144,000 hectares of forest land in Davao Region are being offered to private investors for commercial agroforestry, tree plantations, and other ventures, raising questions about how the government will balance economic development with forest conservation and the rights of communities living in and around these areas.
The Department of Environment and Natural Resources (DENR) has identified 144,035 hectares in the region as potential investment areas, accounting for 28.8 percent of the 500,011 hectares delineated across Mindanao.
Although Caraga has the largest land area identified at 177,201 hectares, Davao Region has the highest number of parcels at 1,195, nearly half of the 2,451 parcels mapped across the island.
The figures were presented by DENR Undersecretary for Field Operations-Mindanao Joselin Marcus Fragada during the second day of the Mindanao Development Forum 2026, organized by the Mindanao Development Authority at Dusit Thani Davao on Oct. 28.
Speaking on behalf of Environment Secretary Juan Miguel Cuna, Fragada described the areas as production forests outside protected areas, critical watersheds, and existing forest tenures.
He assured participants that the remaining natural forests would not be opened to commercial exploitation.
“These are not pristine old-growth forests. Our protection forests, our high-elevation watersheds, and critical protected areas remain strictly off-limits and conserved,” Fragada said.
But the distinction between natural forests and production forests does not, by itself, establish that every proposed investment is environmentally safe or socially acceptable.
For communities dependent on forests for water, food, livelihoods, and cultural practices, the critical question is whether the government’s land classification and investment plans adequately account for local realities, competing land claims, and environmental risks.
INVESTMENT OPPORTUNITY OR ENVIRONMENTAL RISK?
Of the total areas identified across Mindanao, 272,057 hectares are designated for agroforestry, including cacao, coffee, and rubber; 216,081 hectares for tree plantations intended for timber, wood processing, and biomass; and 11,873 hectares for pasture and ecotourism.
The DENR has also identified 132,896 hectares in 431 parcels as potential sites for utility-scale solar and wind energy projects.
These areas reportedly meet technical requirements, including proximity within 20 kilometers of National Grid Corporation of the Philippines substations and slopes below 20 percent.
Fragada described the 500,000 hectares as open, brush, and production forest lands ready for private capital.
“These 500,000 hectares are open, brush, and production forest lands ready for capital injection,” he said.
However, commercial plantations, biomass production, pasture development, and energy infrastructure can have different environmental footprints. Their effects on vegetation, soil, water resources, biodiversity, and surrounding communities will depend on the actual location, project design, and implementation.
The DENR has yet to publicly detail, in the presentation cited, the specific locations of the 1,195 Davao Region parcels, the communities that may be affected, and the environmental conditions that investors must meet before undertaking development.
Making these maps and assessments accessible to local governments, Indigenous Peoples, civil society organizations, and affected residents would allow communities to scrutinize the proposals before investment decisions are finalized.
WHO GETS TO DECIDE AND BENEFIT?
The proposed investments will be covered by the Sustainable Forest Land Management Agreement (SFLMA), governed by DENR Administrative Order 2025-22 and subsequent amendments.
The agreement is intended to streamline forest land management and investment procedures. However, the process of simplifying permits must not come at the expense of meaningful community participation and accountability.
This is particularly important in Mindanao, where forest lands may overlap with ancestral domains, customary resource-use areas, and communities whose livelihoods depend on surrounding ecosystems.
The government’s free, prior, and informed consent (FPIC) requirements for projects affecting Indigenous Peoples must be respected. Consultation should not be reduced to a procedural requirement after investment proposals have already been developed.
Under the updated SFLMA rules, areas overlapping with existing Community-Based Forest Management Agreements (CBFMAs) or Certificates of Stewardship Contracts require appropriate documentation from existing tenure holders before an SFLMA can be issued.
DENR Administrative Order 2026-07 also expressly excludes CBFMAs from the coverage of DAO 2025-22, retaining a separate policy framework for community-based forest management.
These provisions make it important for the DENR to disclose how it will resolve overlapping claims and protect existing community rights as new investments are considered.
THE PRICE OF USING FOREST LAND
According to Fragada’s presentation, applicants must pay a P10,000 application fee and submit documents, including proof of registration, geographic information system maps, and evidence of financial capacity.
The prescribed annual user fees include three percent of gross revenue for agroforestry and forest plantations, P200 per hectare for grazing, P85,000 per hectare for ecotourism and other special uses, and P7,200 per hectare for energy projects, subject to a cumulative 10-percent annual increase.
Protection forest development undertaken through corporate social responsibility initiatives and mandated reforestation carries no user fee.
These rates are provided under the latest amendments to the SFLMA rules, particularly DAO 2026-38.
But the cost of using public forest resources cannot be measured solely through application fees and government revenue shares.
The public also needs to know how the DENR will measure environmental performance, monitor rehabilitation commitments, enforce penalties, and ensure that economic benefits reach affected communities.
A three-percent revenue share, for instance, does not automatically guarantee fair compensation for communities or prevent environmental degradation.
MINING ADDS TO THE ACCOUNTABILITY QUESTION
Fragada also promoted Executive Order 122, signed by President Ferdinand Marcos Jr. in August 2026, which identifies critical mineral processing as a national priority and encourages domestic smelting and refining.
He said more than half of the over 74 mineral production sharing agreements issued by the DENR are in Mindanao, many in Caraga.
“The nickel-cobalt laterites of Caraga and the world-class copper deposits across Mindanao must not leave our shores in raw barges,” he said.
His presentation reported that Philippine copper production reached 231,885 dry metric tons valued at P26.63 billion in 2025.
Fragada also cited the enforcement of environmental, social, and governance standards under the Mining Industry Coordinating Council and compliance with FPIC requirements.
“Any enterprise operating in Mindanao must uplift indigenous communities, secure uncompromised social licenses, and restore the land better than they found it,” he said.
The commitment is significant, considering the environmental and social challenges associated with extractive industries in Mindanao. But promises of responsible investment must be matched by transparent monitoring, public access to compliance records, and effective sanctions against violators.
The same accountability should apply to companies seeking access to forest lands.
COMMUNITIES MUST HAVE A VOICE
The DENR’s investment initiative presents opportunities to generate jobs, expand agricultural production, and support renewable energy development.
But the scale of the areas being offered, particularly in Davao Region, demands closer public scrutiny.
Before investors move in, communities deserve clear information on where the parcels are located, what activities are allowed, who currently uses the land, and what protections will apply to forests, watersheds, biodiversity, and ancestral domains.
Local governments and affected communities must also have access to project documents, environmental assessments, consultation records, and monitoring reports.
The government’s challenge is not simply to attract capital into forest lands. It is to demonstrate that investment will not weaken the ecological systems and community rights that make these lands valuable in the first place.
The DENR has directed interested investors to the Forest Management Bureau’s forest investment portal.
