Republic of the Philippines

Department of Environment and Natural Resources

Visayas Avenue, Diliman, Quezon City
Tel. Nos. (632) 929-66-26 to 29 • (632) 929-62-52
Website: http:/www.denr.gov.ph / E-mail: [email protected]

DENR ADMINISTRATIVE ORDER

No. 2021- '.1-3
---

SUBJECT GUIDELINES FOR THE DEVELOPMENT AND

RECOGNITION OF BIODIVERSITY-FRIENDLY
ENTERPRISES (BDFEs) IN PROTECTED AREAS UNDER
THE NATIONAL INTEGRATED PROTECTED AREA
SYSTEM (NIPAS) AND CONSERVATION AREAS,
PROVIDING FOR INCENTIVES AND SUPPORTING
MECHANISMS

Pursuant to the 1987 Constitution, the National Integrated Protected Areas System
(NIPAS) Act of 1992 (Republic Act No. 7586), as amended by the Expanded National Integrated
Protected Areas System Act of 2018 (RA No. 11038) and its implementing rules and regulations
(DENR AO 2019-05); consistent with the Wildlife Resources Conservation and Protection Act
(RA No. 9147), the Indigenous Peoples' Rights Act (RA No. 8371), the Go Negosyo Act
(Republic Act No. 10644), the Ecological Solid Waste Management Act of 2000 (RA No. 9003),
Adopting Integrated Coastal Management (ICM) as a National Strategy to Ensure the
Sustainable Development of the Coastal and Marine Environment and Resources and
Establishing Support Mechanisms for its Implementation (Executive Order No. 533),
Establishing the Guidelines for Ecotourism Development in the Philippines (EO 111 ),
Establishing the National Policy on Biodiversity (EO 578), Establishing an Environmental
Impact Statement System including other Environmental Management Related Measures and for
Other Purposes (Presidential Decree No. 1586), and in furtherance with DENR Administrative
Order No. 2016-12, Adopting the Philippine Biodiversity Strategy and Action Plan (PB SAP)
2015-2028, DENR AO 2013-19, Guidelines on Ecotourism Planning and Management in
Protected Areas, DENR AO No. 2016-26, Guidelines for the Implementation of Coastal and
Marine Ecosystems Management Program (CMEMP), and DENR Memorandum Circular
2016-745, Integration of Biodiversity Conservation in the Planning, Implementation and
Monitoring of all Infrastructure and Resource Extractive Development Programs and Projects of
the DENR, this Administrative Order is hereby promulgated for the information, guidance, and
compliance of all concerned.

Section 1. Basic Policy. It is the policy of the State to protect and advance the rights of
the Filipino people to a balanced and healthful environment. The State shall protect and conserve
natural resources and cultural heritage for the enjoyment of the present and future generations
and improve their socio-economic conditions through the promotion of social justice,
stewardship, equitable access to and sustainable use and development of the country's natural
resources and biodiversity. In doing so, the state ensures provision of full institutional, scientific
and technical support needed for the conservation of biodiversity and the integrity of ecosystems,
culture and indigenous practices in protected areas. It recognizes and protects the rights of
indigenous people, promotes the role of women in nation building and encourages the formation
of Filipino enterprises.

Section 2. Objectives. This Guidelines shall have the following objectives:

a. To establish procedures for the development and standards for recognition of biodiversity
friendly enterprises;
 b. To provide the enabling environment to encourage upland and coastal communities, with
priority on communities with tenurial instruments and indigenous peoples, to implement
and demonstrate economic activities that are ecologically, socially and culturally
responsible;

c. To establish biodiversity-friendly standards to encourage consumers to make responsible

purchases, supporting legitimate community enterprises recognized to be ecologically
and economically viable, and socially and culturally responsible; and

d. To heighten awareness and participation of communities within and around protected

areas and conservation areas, on the sustainable use of biodiversity, and become
effective partners in the protection and conservation of biodiversity.

Section 3. Scope and Coverage. This Guidelines shall primarily apply to Micro and
Small Enterprises of People's Organizations dependent on ecosystem goods and services
provided by biodiversity, within the multiple use zones and buffer zones of terrestrial and marine
protected areas under the NIP AS and designated conservation areas. However, financial
assistance, provided by DENR, as part of the enhancement shall be limited to Barangay Micro
Business Enterprises.

BDFEs shall be consistent with the existing management and land use plans, including
but not limited to Protected Area Management Plans (PAMPs), Forest Land Use Plans (FLUPs),
Comprehensive Land Use Plans (CLUPs), Solid Waste Management Plans, Community-Based
Resource Management Plans (CRMPs), Ancestral Domains Sustainable Development and
Protection Plan (ADSDPP), Integrated Coastal Management (ICM) plans, and other related
development plans.

Section 4. Definition of Terms. The following terms as used in this Order shall be
understood and defined as:

a. Barangay Micro Business Enterprise (BMBE) 1 - any business entity or enterprise

engaged in the production, processing or manufacturing of products or commodities,
including agro-processing, trading and services, whose total assets including those arising
from loans but exclusive of the land on which the particular business entity's office, plant
and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00).

b. Biodiversity2- the variability among organisms from all sources, including terrestrial,
marine and other aquatic ecosystems and the ecological complexes of which they are a
part; this includes diversity within species, between species and of ecosystems.

c. Biodiversity-friendly enterprise (BDFE) - involves the utilization of resources leaning

towards sustainability and further enhancement of resources in which the community will
have an increased appreciation of biodiversity through its ecosystem services.

d. Buffer zones3 - are identified areas outside the boundaries of and immediately adjacent
to designated protected areas that need special development control in order to avoid or
minimize harm to protected areas.

e. Business Development Services (BDS) - are critical support services rendered by expert
private individuals or company and government agencies that enhance, develop or
strengthen an output of a sector or of the micro, small and medium sized enterprises,
along the value chain in developing countries, including the Philippines.

1
Section 3 (a) of Republic Act No. 9178
2
Section 4 (a) of Republic Act No. 11038
3
Section 4 c of Republic Act No. 11038

2
 f. Certificate of Recognition- certificate issued by the DENR Regional Executive Director
upon validation from the BMB-led team that an eligible enterprise has been assessed
and complied with the recognition standards laid down in this Order.

g. Conservation areas - areas set aside for the protection and conservation of biodiversity
outside the framework of NIP AS such as critical habitats, Ramsar sites, local
conservation areas, indigenous community conserved areas.

h. Economic activities- actions that involve the production, distribution and consumption
of goods and services at all levels in a locality.

1. Ecosystem4 - a dynamic complex of plant, animal, microorganism communities and their

non-living environment interacting as a functional unit.

J. Ecosystem goods and services5 - the multitude of material and nonmaterial provisions
and benefits from healthy ecosystems necessary for human sustenance, well-being, and
survival including support processes, provisioning and environment regulating services,
and cultural resource preservation services.

k. Ecotourism6 - a form of sustainable tourism within a natural and/or cultural heritage area
where community participation, protection and management of natural resources, culture
and indigenous knowledge and practices, environmental education and ethics, as well as
economic benefits are fostered and pursued for the enrichment of host community and
satisfaction of visitors.

1. Enterprise - economic activities that add value to existing product or service, are
innovative and have the potential for semi-commercial or commercial operation.

m. Micro and Small Enterprises 7 - any business activity or enterprise engaged in industry,
agribusiness and/or services, whether single proprietorship, cooperative, partnership or
corporation whose total assets, inclusive of those arising from loans but exclusive of the
land on which the particular business entity's office, plant and equipment are situated,
must have value falling under the following categories:

Micro not more than P3,000,000

Small P3,000,001 -Pl5,000,000

n. Multiple-use zone8 - area where settlement, traditional and sustainable land use
including agriculture, agroforestry, extraction activities, and income generating or
livelihood activities may be allowed to the extent prescribed in the Protected Area
Management Plan.

o. National Integrated Protected Areas System (NIPAS) 9 - is the classification and

administration of all designated protected areas to maintain essential ecological processes
and life-support systems, to preserve genetic diversity, to ensure sustainable use or
resources found therein, and to maintain their natural conditions to the greatest extent
possible.

4
Rule 4.1 (d) of DAO 2019-05
5
Section 4 (i) of RA 11038
6
Section 4 (1) of DAO 2013-19
7
Section 3 of RA 9501
8
Section 4(t) of RA 11038
9
Section 4 (a) of RA 7586

3
 p. People's Organization (PO) - a group of people, which may be an association,
cooperative federation or other legal entity, established by the community to undertake
collective action to address community concerns and needs and mutually shared benefits
from the endeavor.

q. Protected Area (P A) 10 - identified portions of land and/or water set aside by reason of
their unique physical and biological significance, managed to enhance biological
diversity and protected against destructive human exploitation.

r. Recognition - the process of validating if an eligible enterprise has met the standards as
biodiversity-friendly under this Order.

s. Sustainable Use 11 - the use of components of biological diversity in a way and at a rate
that does not lead to the long-term decline of biological diversity, thereby maintaining its
potential to meet the needs and aspirations of present and future generations.

Section 5. Principles of Biodiversity-friendly enterprises (BDFEs). Development and

recognition ofBDFEs shall be guided by the following principles:

a. Fair and equitable12 • The rights of communities are recognized in the use of biodiversity
aimed at improving the overall human well-being.

b. Precautionary 13 • Identifies and foresees imminent threats from economic activities to

which mitigating measures are applied.

c. Sustainable 14. Efficient use of resources through responsible production and

consumption is observed securing the availability of ecosystem services for the future
generation.

d. Participatory and Inclusive. Public participation through convergence and by engaging

local stakeholders is encouraged to maximize conservation and community benefits.

Section 6. Categories of Biodiversity Friendly-Enterprises. BDFEs are enterprises that

do not have significant adverse effects to the environment. These are economic activities that
contribute in the maintenance of ecosystem resilience and promote the sustainable use of
biodiversity. The enterprises within the following categories shall be considered for development
and recognition:

6.1. Sustainable Agriculture 15 • Enterprises engaged in practices that sustainably use and
conserve biodiversity including agriculture-important species, habitat networks and biological
corridors. These practices ensure the attainment and continued satisfaction of human needs for
present and future generations in a manner that are environmentally, economically and
socially acceptable. The practices/enterprises under this category are the following:

a. Application of biodiversity friendly agricultural practices like diversified farming

(inter/multi-cropping);
b. Growing of traditional/indigenous agriculture crops;
c. Agroforestry including sloping agricultural practices;
d. Production of organic products (integrated organic agriculture);

10
Section 4 (b) of RA 7586
11
Convention on Biological Diversity (CBD)
12
Aligned with the Output of the Philippine Biodiversity Strategic Action Plan Framework
13
Aligned with the Conservation of Biological Diversity Precautionary Principle in its Preamble
14
Aligned with the Sustainable Development Goals adopted as part of the 2030 Agenda for Sustainable
Development
15
fao.org

4
 e. Ornamental agriculture; and
f. Growing and sustainable harvesting of raw materials for medicinal/pharmaceuticals
use, among others.

6.2. Sustainable Fisheries. These are enterprises that reduce the pressure and
overexploitation of aquatic resources while addressing food security, and are generally
aligned with the Fisheries Code and the E-NIP AS Act. Enterprises engaged under this
category simultaneously harvest and maintain aquatic population and set aside certain areas as
protected spots in which extraction is prohibited. Sustainable fisheries and fish
farming/aquaculture practices include:

a. Seaweed farming;
b. Integrated Multi-Trophic Aquaculture (IMTA);
c. Closed-cycle fish-rearing systems; and
d. Sustainable aquaculture, among others.

6.3. Sustainable Forestry. Enterprises which mainly use forest resources for its raw
materials, and their activities directly contribute to biodiversity protection, management and
restoration. Sustainable forestry balances the needs of the environment, wildlife, and forest
communities and supporting decent incomes while conserving our forests for future
generations. Enterprises in this category are those practicing the following:

a. Sustainable harvesting of forest products in accordance to existing rules and

regulations;
b. Establishment of community-based nurseries of endemic, indigenous or native trees;
c. Planting of endemic, indigenous or native trees; and
d. Propagation of native and endemic wild flora, among others.

6.4. Manufacturing, Processing and Distribution. Enterprises engaged in processing of

primary goods into finished goods of higher value for distribution. This includes economic
activities that involve the use of non-timber forest products (NTFPs) as raw materials and
such other non-endemic resources from the marine areas or seascapes. The
practices/enterprises under this category are the following:

a. Processing of fish and other dried foods;

b. Processing of fruits into jam, vinegar and candies;
c. Processing of Coffee and tea;
d. Processing of agro-products to chips;
e. Processing of fruits and vegetables into juices and wine;
£ Production of handicrafts, bags, footwear, and other souvenir items/products;
g. Production of clothing apparel using traditional/non-traditional raw materials abundant
in the area;
h. Manufacturing of non-timber forest products such as sap, resin and natural dyes; and
1. Manufacturing of medicines, supplements, skin and body care products, and Essential
oils, among others.

6.5. Services. These are economic activities that can generate fees for the biodiversity services to
encourage maintenance and protection of biodiversity and provides income to communities.
These enterprises shall be approved by the PAMB to ensure that the activities conform to the
PAMP. The practices/enterprises under this category are the following:

a. Agri-tourism;
b. Community-based ecotourism and related services
c. Public-private-community partnership for park development and management;
d. Habitat restoration;

5
 e. Nature and landscape protection service/forest protection and maintenance/protection
and maintenance of reforestation sites
f. Health and wellness; and
g. Indigenous Traditional Services (Hilot ... etc), among others.

Section 7. BDFE Standards. To be recognized as biodiversity-friendly enterprise, the

enterprise shall be measured against the ecological, economic, equity and legal standards. Each
standard shall be measured based on identified indicators and parameters specified in the
appraisal tool (Annex F).

7.1. Ecological Integrity measures how the enterprise considered the spatial and species use
requirements in the area including the impact of their operations (inputs, process and outputs)
to the ecosystem. Recognizing the variety of ecological indicators to represent this standard,
an Ecological Impact Form (Annex E) is to be prepared and incorporated in the development
of the BDFE Business Plan.

a. The use of biodiversity resources and ecosystem services conforms to best

management practices of conservation and sustainable use of biodiversity
b. The use of biodiversity resources and ecosystem services maintains the natural
integrity of the ecosystem.
c. The enterprise contributes in the prevention of habitat fragmentation.

7.2. Economic viability refers to the soundness of the enterprise, including a range of
activities aimed on the growth, profitability and sustainability of the community enterprise,
and the people organization managing them, within market contexts. Annex D shall provide an
overview of the PO assets and revenues which will form part in adhering to this standard.

a. The enterprise is economically viable which is evident through a financial statement

(e.g., ledger, logbooks) of enterprises, supported by other PO valuable assets and
market coverage.
b. The enterprise practices value addition and innovation of biodiversity towards positive
financial returns that benefit the community, government and biodiversity.

7.3. Equity refers to socio-cultural benefits provided by enterprise, the manner of respecting
the rights of labor, equal opportunities and benefit for men and women and rights of the
indigenous peoples.

a. The enterprise practices equitable sharing of benefits ar1smg from the use of
biodiversity and services.
b. The enterprise supports the rights of indigenous peoples, tenured migrants and other
upland and coastal communities.

7.4. Legality refers to compliance with the arplicable national and local environmental laws
and regulations (e.g., RA 11038, PD 1586 1 , RA 9275 17 , RA 8749 18 , RA 9003 19 and RA
696920 , etc.) and other business and other related laws, rules and regulations (e.g., RA 9178 21 ,
RA 9501 22 as amended by RA 8289 and 6977)
a. The enterprise is legally permitted and due process leading to such permission has
been complied with.

16
Establishing an Environmental Impact Statement System, Including Other Environmental Management Related
Measures and For Other Purposes
17
Philippine Clean Water Act of 2004.
18
Philippine Clean Air Act of 1999
19
Ecological Solid Waste Management Act of2000
20
Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990
21
Barangay Micro Business Enterprises (BMBE's) Act of 2002.
22
Magna Carta for Micro, Small and Medium Enterprises (MSMEs)

6
 b. The resources used in the enterprise can be traced back to its source.
c. All documentary requirements have been complied.

Section 8. Development of BDFEs. The development of BDFEs shall consist of the

following phases:

8.1. Inventory of Existing Livelihood and Enterprises. Within 1 year from the effectivity of
this Order, the CENRO/PAMO in coordination with the PENRO, shall conduct an inventory
of all community-owned/based livelihood and micro and small enterprises to come up with a
list of potential enterprise for BDFE development. The CENRO/PAMO may tap the local DTI
offices and check the availability of an inventory of enterprise within their jurisdiction. Using
Annex A of this DAO, the inventory shall serve as the baseline of the number of enterprises,
including business facilities, operating within multiple use zones and buffer zones in
Protected Areas and conservation areas. The list shall be updated every five (5) 23 years.
I

8.2. Rapid Assessment. The concerned CENRO/PAMO in coordination with the respective
PENRO, shall conduct a Rapid Assessment using Annex B of this DAO iri order to come up
with a List of Eligible Enterprises. Following the conduct of the Rapid Assessment, the
PENRO shall complete the information required in Annex C through the conduct of an
interview with the officers and members of the people's organization. A baselining of the PO
assets and revenues are also to be recorded using Annex D and its potential ecological impacts
should be profile using Annex E. The list shall be completed within three (3) months from the
completion of the rapid assessment of the concerned enterprise. The Regional Office shall
verify and endorse the list of eligible enterprise to BMB that shall undergo
development/enhancement. Each eligible PO will then be subjected to .a Benefit-sharing
agreement stipulated in Section 11 of this DAO.

8.3. Appraisal of Enterprises. Using Annex F of this DAO, the assessme;nt team composed
of representatives from the Regional Office, PENRO, CENRO and PAMO shall conduct an
appraisal of the enterprise to determine its level· of Development. Annex F also provides the
standards and indicators for each level which in consequence, identifies the enhancement
needed.

8.3.1. Level 1. Established. This is the start -up stage where the community enterprise
has secured the necessary legal requirements to operate in a protected area. In effect at
this point, the standards of legality are fully met, and they are included in the list as an
eligible enterprise.

8.3.2. Level 2. Strengthened. At this stage the development and adoption of a BDFE
Business Plan, following Annex G as its outline, is prioritized. Further, POs have
identified the linkage of their products and services to markets.

8.3.3. Level 3. Developed. The enterprise is implementing its BDFE business plan
showing positive net profits.

8.3.4. Level 4. Sustained. This is the period when an enterprise has continued to operate
sustainably, both in ecological, economic and equitable manner and shall be ready to
apply for recognition.

Enterprises appraised falling under Levels 1-3 shall then undertake enhancement to
achieve Level 4. For enterprises which were appraised as Level 4, they shall qualify for the
recognition process following the steps provided below.

23
Estimated length of 1 full-cycle ofBDFE Development and Recognition

7
 Despite the need to assess the enterprise with the Regional Office, the PAMO together
with the PO may initiate a self-assessment using Annex F to monitor their progress.

The DENR thru the Biodiversity Management Bureau (BMB) shall review the foregoing
criteria every 4 years from the effectivity of this Order.

8.4. Enhancement of Enterprises. The CENRO/PAMO, in coordination with the PENRO

shall be able to identify what are the enhancement activities which may be provided to the
enterprise in order to achieve recognition. The PAMB shall also review undertakings on
BDFE through the Technical Working Committee on Community Management and shall
issue resolutions for the enhancement of PO enterprises. The support includes provision of
technical and financial assistance.

a. Technical Assistance. BMB shall develop plans for capacity building on enterprise
development, organizational development for people organizations, value chain studies
and other activities deemed appropriate. In order to maximize profit that could be
generated, and to increase the value added, the communities shall be encouraged and
assisted to further develop and upgrade the materials into higher value finished products.
In addition, business development services may be provided in coordination with the
Department of Trade and Industry (DTI), Technical Education and Skills Development
Authority, and NGOs to promote entrepreneurial culture and competency. Business
development services may include assistance in securing various government permits
necessary for the operation of the enterprise and the creation of linkages between service
providers that may enhance the PO operations. Value chain analysis shall be promoted in
order to maximize the profit that could be generated with lower volume of extraction of
biodiversity resources. All of these are to be integrated in the formulation of a PO
business plan to be assisted by DENR in collaboration with DTI and other concerned
agencies and organizations.

b. Financial Assistance. POs shall be subjected to the process of accessing financial

assistance as stipulated in Section 9 of this order. However, the provision of financial
assistance will be subject to the availability of funds. Nevertheless, the DENR may
establish linkage between POs and funding agencies to support the capital build-up of the
enterprise.

Section 9. Financial Assistance of BDFEs. A maximum of one million pesos (P

1,000,000) may be granted by the DENR as financial assistance to eligible enterprises after the
review of the required documents. POs who are appraised as Level 1 are to be considered,
mainly, for provision of Financial Assistance.

9.1 Procedure of Granting Financial Assistance.

a. The PENRO shall determine qualified Level 1 POs to be granted financial

assistance. Qualified POs shall submit their project proposal using the template in
Annex H.
b. After determining POs that are compliant to the abovementioned conditions the
PENRO shall secure from the PO the required documents listed in Annex I of this
Order.
c. The PENRO Bids and Awards Committee (BAC) shall evaluate the completeness
of the submitted documents and the compliance of the Project Proposal with the
standards set in Annex B. POs who are compliant with the conditions and the
requirements will be issued with Notice of Award by the PENRO BAC. The
PENRO shall ensure that items/activities in the Proposed Work and Financial
Plan (WFP) shall be in accordance with the Allowable Uses in Section 9.2.

8
 d. The PENRO shall then enter into a Memorandum of Agreement (template in
Annex J) with the selected PO. Given that both parties agreed to the terms and
conditions stipulated in the MoA, the PENRO issues the Notice to Proceed (NTP).
e. The Protected Area Superintendent, DENR RO, and BMB shall be furnished a
copy of the Mo A and WFP. The funds shall be released by the PENRO to PPO
quarterly in accordance with the approved WFP.
f. The PO shall submit progress reports on physical accomplishment and fund
utilization quarterly. At the end of the financial assistance, the PO shall provide a
final and liquidation report to the PENRO.

9.2 Allowable Uses. Financial Assistance to be granted to POs shall only be used to finance
operational activities. Wages and salaries of the members of the PO shall not be charged from
the financial assistance granted to them. Financial Assistance granted by the DENR shall be in
accordance with accounting and auditing rules and regulations.

Section 10. Recognition of BDFEs. Recognition is the process of validating if an

eligible enterprise has met the standards as biodiversity friendly under this Order. Recognition
process shall consist of the following process:

10.1. Endorsement. PAMO, CENRO, and PENRO shall submit to the Regional Office the
list of all eligible enterprises that achieved level 4 of the development process as defined by
this DAO. This submission shall be supported by a PAMB resolution indicating its support
towards the recognition of the identified enterprises. Only those Level 4 eligible enterprises
with complete requirements/MOV s as required by the appraisal tool (Annex F) shall be
endorsed by the Regional Office to BMB for validation.

10.2. Validation. The collected information shall then be validated by a team led by the
BMB, in coordination with the Regional Office through the conduct of combination of an on-
site biophysical, economic, and social assessment. Further, representatives of the PO should
be available for an interview. The validation shall undergo the following process:

a. The BMB, upon receipt of the endorsement with complete requirements, shall
coordinate with the Regional Office to conduct an on-site validation within 20 days.
b. The validation team shall be composed of at most 3 members coming from the BMB
BDFE Core Group with representatives from the Regional Office.
c. Upon the completion of the validation with positive feedback, the BMB shall submit
their recommendation to Regional Office prior to the issuance of Certificate of
Recognition.
d. If the enterprise fails to pass the validation stage, representatives of the enterprise shall
be invited by the Regional Office to discuss results, and to reach an agreement on how
to comply with the standards. The enterprise shall be given sufficient time to put in
place or implement measures to comply with the standards.
e. BMB shall initiate the revalidation and the enterprise will be evaluated until it passes.
In this period, enterprise can be advised to go through the enhancement process for
further assistance. The PAMO and the CENRO offices shall provide assistance to the
POs to put in place necessary measures to be complied with the standards.

10.3. Issuance of Certificate of Recognition. The DENR thru the Regional Executive
Director (RED) shall have the authority to certify that an enterprise has met the standards laid
down in this Order. The RED shall issue the Certificate of Recognition (CoR) upon the
endorsement of the validation team, as per Section 10.2. The CoR is proof that the enterprise
is biodiversity friendly and entitled to all incentives provided in this Order and other
applicable rules. The CoR is valid for three years, and can be renewed thereafter, if still
compliant. Upon monitoring, if there are violations, the CoR may be void.

9
 10.4. Incentives. The CoR serves as the authority of the enterprise to be entitled to incentives
under this Order. DENR may create additional incentives and another system of recognition
for outstanding and exemplary BDFEs.

a. Biodiversity Friendly Label. All BDFEs shall be identified thru a label provided by
the BMB. The label is initially effective for three years and as long as the enterprise
has complied BDFE standards. It shall be free of charge and shall be used in
accordance with this Order. All products and services recognized as BDFEs shall
consistently and prominently display the BDFE label for the purpose of identification
and generating awareness and demand for BDFEs products and services. The control
of BDFE logo printing and terms of use shall be detailed in a technical bulletin.
DENR shall simplify documentary requirements for community enterprise and assists
all eligible enterprises in business registration thru the Negosyo Centers. The
Department, through the BMB, shall facilitate stronger collaboration through mutual
agreements between DENR and DTI/ DOST;

b. Risk Insurance. BDFEs inputs, products and services are mainly from natural
resources which are vulnerable to impacts of climate change and natural disasters. The
DENR, through the BMB, shall link with the other agencies such as the
Philippine Crop Insurance Corporation, Landbank to facilitate risk insurance to
BDFEs;

c. Market Linkages. Biodiversity friendly enterprises shall be linked to international

markets through extensive networks of partnerships in both the public and private
sector. Value chain analysis shall be used to help the community understand how they
can increase their revenues significantly using the same raw material.

d. Consolidated Marketing. DENR Regional Office with the assistance of LGUs, DTI,
private sector shall aim for a consolidated marketing effort with full logistical support
that taps more advanced BDFEs to open and maintain mainstream markets for the
smaller enterprises.

e. Other Incentive Systems. In addition to the incentives provided by DENR, BDFEs

are eligible for incentives and support services as Barangay Micro Business
Enterprises (BMBEs) under Republic Act No. 9178, Go Negosyo Act, Republic Act
10644, Social Reform and Poverty Alleviation Act, RA 8425 and Ease of Doing
Business Act under Republic Act 11032. The BMB, PAMO, PAMB, CENRO and
PENRO shall coordinate with these NGAs to facilitate BDFEs access to said
incentives and support services.

Figure 1 shows the steps that shall be followed for the development and recognition of
enterprises.

10
 PaSulCENRO/
DEVELOPMENT
PEN RO/Regional
Office
lnvenlo!)' of POs
\Vit11ln the PA
II ,!.

Rapid Assessment

ePOaohie•,

I
1 I
For inventory le,.;t 80% in Ute Rap(d
No Asses_sment7

Yes

RECOGNITION
Appraisal of
~-
Enterprises

I -
l ! l l
Level 3:
Level 1: Established Level 2: Strengthened Level 4: Sustained
lnsitutlonaJjzed

t
[_

t i -
y Enhancement

- - - - - - - - - - - - - - - - - - - -- - - - - - -
- Cl

Endorsemeril
c o

Regional
Office/BMB

s comple
OVs foTLeve
4?
No
Yes

Validation

lldatio
reportwilh
positive
ba
No

Yes

Recognition

J,

lncentivizallon

-
Figure 1. Flowchart for the Development and Recognition of the BDFE.

11
 Section 11. Benefit-sharing agreement. The PO and the PAMB shall enter into an
agreement for the development and management of areas used for the implementation of BDFE
projects, as well as for the benefit-sharing scheme and the schedule of contribution for income
derived from BDFEs. The share of the Protected Area shall accrue to the Integrated Protected
Area Fund (IP AF), and shall be considered as contribution of the PO in the protection and
conservation of the PA. The establishment of income sharing scheme shall be anchored to Rules
2.2 c and 9.6 of the RA 11038 or ENIPAS Act of 2018 and Item 2.2.5 of DAO 2004-32 in the
case of Protected Area Community-based Resource Management Agreement (PACBRMA).

Section 12. Communication Education and Public Awareness. DENR-BMB and all
the DENR Regional Offices shall conduct public awareness campaigns to inform all potentially
affected parties and all concerned government agencies of this program and strengthen support
for biodiversity friendly enterprises.

Section 13. Institutional Arrangements. Development and Recognition of BDFE is a

convergence program mainstreaming biodiversity conservation and sustainable use into
livelihood programs primarily utilization and natural resources. In order to provide coordinated,
efficient, and effective implementation of this Order, the BMB, DENR Regional Offices,
PENRO, CENRO/PAMO shall have the following roles and responsibilities:

13.1. Roles and Responsibilities of Biodiversity Management Bureau

a. Creation of a BDFE Core Group overseeing the implementation of the DAO;

b. Provide overall direction and guidance to the operationalization of the BDFE;
c. Allocate funding for BDFEs, including for the development, recognition, and the
facilitation cost for the provision of incentives as stipulated in Section 10.4.
d. Develop and provide capacity building programs for DENR field personnel, Local
Government Units, other agencies and people's organization engaged in BDFEs;
e. Review and evaluate existing tenurial instrument/s of the PO (if applicable);
f. Monitor, Measure and Report performance of the BDFEs recognition system in
achieving PBSAP targets;
g. Link the BDFEs to support services and programs of different partners, including but
not limited to NGAs, CSOs and private institutions;
h. Generate supporting information such as technical and markets studies to support
BDFEs;
i. Conduct on-site validation, in coordination with DENR Regional Office, to assess if
the enterprise complied to the standards ofBDFE;
J. Validate assessment results and recommendation of the DENR Regional Office; and
k. Issue supplemental guidelines as may be appropriate in order to improve the
development and recognition of BDFE
1. Coordinate and establish partnerships with other National Government Agencies
(NGAs) such as the Department of Trade and Industry (DTI) for the provision of
incentives and implementation of other activities in this Order.

13.2. Roles and Responsibilities of DENR Regional Office

a. Create the Regional BDFE Core Group to be composed of representatives from

Conservation and Development Division (CDD), Licenses, Patents and Deeds
Division (LPDD), Enforcement Division (ED), Survey and Mapping Division (SMD),
Solid Waste Management Division of EMB, and concerned PENRO, CENRO,
PAMO. The Group shall monitor and evaluate the implementation of this Guidelines
within the region;
b. Forge partnership with other NGAs, LGUs, NGOs, private sector and community for
the promotion ofBDFEs;

12
 c. Facilitate the participation of staff and field personnel handling BDFE in capacity
building program on BDFEs;
d. Ensure that enhancement ofBDFE has corresponding budget allocation;
e. Issue supporting instructions to PENRO and the CENRO to effectively implement this
Guidelines;
f. Promote and integrate BDFEs in the investment programs of other agencies, LGUs in
the region thru the Regional Development Council;
g. Link the BDFEs to support services and programs of different partners, including but
not limited to NGAs, CSOs and private institutions;
h. Include the information on BDFEs in its database;
1. Assist and provide technical assistance to the Field Offices in the development of
BDFEs;
J. Monitor the progress of enterprises; and
k. Award the Certificate of Recognition to the BDFE under this Guidelines.

13.3. Roles and Responsibilities of Provincial Environment and Natural Resources

Office (PENRO)

a. Assess the enterprises' compliance with the standards;

b. Facilitate the development ofBDFE in coordination with Regional Office;
c. Map out all information and services essential to prospective entrepreneurs and
prospective investors of BDFEs within its jurisdiction;
d. Provide periodic inspections and reports bi-annual;
e. Ensure that enhancement ofBDFE has corresponding budget allocation;
f. Provide support to the PAMO/CENRO in assisting POs in enhancing their
understanding and skills on BDFEs;
g. Endorse the qualified enterprise to the Regional Office for recognition;
h. Monitor the progress of enterprises; and
1. Link the BDFEs to support services and programs of different partners, including but
not limited to NGAs, CSOs and private institutions.

13.4. Roles and Responsibilities of Protected Area Management Office (PAMO)/

Community Environment and Natural Resources Office (CENRO)

a. Establishes the baseline of enterprises within the P As;

b. Through the Conservation and Development Section, conduct of rapid assessment and
profiling of enterprises and facilities in their respective jurisdiction in coordination
with the PENRO;
c. Appraisal of the PO levels and assist the PO on the needed enhancement activity for
BDFE Recognition;
d. Assist the PO in filing an application for BDFE development and recognition;
e. Disseminate information on BDFEs within PAs and on field;
f. Link the BDFEs to support services and programs of different partners, including but
not limited to NGAs, CSOs and private institutions;
g. Liaise and Encourage LGUs to provide support to BDFEs (such as ordinance,
programs and projects (skills training etc.) supporting BDFEs);
h. Monitor the progress of enterprises; and
1. Designate a person tasked to provide necessary guidance and assistance for peoples'
organizations to comply with the foregoing criteria.

The Protected Area Management Office (P AMO) and the CENRO shall have additional
staff, skilled at business development to provide support to BDFEs. Facilitators of the BDFE
development shall continually embark on skills development related to enterprise and
business development.

13
 13.5. Roles and Responsibilities of the Protected Area Management Board and other
Management Bodies

a. Ensure that a Technical Working Committee on Community Management is activated

and their functions include the development and recognition of BDFEs as provided
under this Order. The PAMB may invite other key agencies such as the Department of
Trade and Industry, Department of Tourism, Cooperative Development Authority and
National Commission of Indigenous People, LGUs and civil society engaged on
social entrepreneurship;
b. For small PAMB, which opted not to have technical working committees, the board
may decide enhancement procedures for the development of the enterprises within
their jurisdiction;
c. Issuance of a PAMB resolution approving the BDFE development and benefit-sharing
agreement with the PO, identifying enhancement procedures as well as its support in
endorsing eligible enterprises for recognition, and other relevant concerns for BDFE as
deem necessary;
d. Issuance of PAMB Clearance through a PAMB Resolution requiring those POs with
development projects to undergo scoping process under the EIS System or if eligible
with the Certificate of Non-Coverage issued by EMB;
e. Support and strengthen POs to establish and develop enterprises in a sustainable basis,
and level up;
£ Encourage Local Government Units to support BDFEs, include such in their Local
Investment Plan and Executive Legislative Agenda;
g. Support in identifying areas and resources that can potential biodiversity-friendly
economic activities;
h. Allocate funds for technical support to BDFEs such as feasibility and value chain
analysis studies, among others;
1. Endorses Level 4 Enterprises to undergo Recognition process; and
J. Link the BDFEs to support services and programs of different partners, including but
not limited to NGAs, CSOs and private institutions.

Section 14. Site Monitoring and Updated Inventory. The PAMO and the CENRO
Office shall monitor operations of all enterprises at least twice a year, include said monitoring
report in the annual report and shall maintain an updated inventory of all these enterprises and
their facilities covered under this Order.

The BMB and the Regional Office shall schedule validation of monitoring reports and
assessments through on-site visits.

PO enterprises shall allow the DENR entry to their business facilities for the conduct of
the assessment of operations, appraisal and the validation should they be endorsed for
recognition.

Section 15. Reporting System. The PENRO in coordination with the concerned
PAMO/CENRO shall monitor compliance of the BDFEs with this Order. Inventory and
profiling reports shall be submitted by the PENRO to the Regional Office for endorsement to
BMB. The PENRO shall submit an annual progress report to BMB through the regional office.

Section 16. Funding. The Department shall allot regular funds to support the
implementation of this Order.

Section 17. Dispute Resolution. Any complaints arising from the implementation of this
Order including disputes over the recognition process shall be lodged at the DENR Regional
Office. Within 15 days from receipt of a complaint, the Regional Office shall conduct an

14
investigation, and within 30 days from receipt shall issue a resolution. Any decision can be
appealed to the Secretary pursuant to existing rules.

Section 18. Liability. All activities in the protected areas shall abide by the principles
and best management practices on sustainable use and conservation of biodiversity. All persons
with business operations in the PA shall be liable for any harm and damages caused by their
operations pursuant to existing rules.

Section 19. Separability Clause. Should any of the prov1s10ns of this Order be
subsequently or otherwise revised, modified or repealed accordingly, the same shall not affect
the validity or legality of the other provisions so far as they could stand independently of the
provisions so revised, modified or repealed. The BMB may issue supplemental guidelines in
order to improve the recognition ofBDFE.

Section 20. Repealing Clause. All other orders, circulars, memoranda and other
issuances (i.e., DAO 2018-22, TB 2017-11, and TB 2018-03), or parts thereof, inconsistent with
the provisions of this Order are hereby repealed, amended or modified accordingly.

Section 21. Effectivity Clause. This Order shall take effect fifteen (15) days after its
publication in a newspaper of general circulation and upon acknowledgement thereof by the
Office of the National Administrative Registrar (ONAR).

---'1,0V-
ROY A. CIMATU
Secretary
.,.-..,.
~ REPUBLIC OF THE PHILIPPINES
=-=" DEPARTMENT OF ENVIRONMENT

I\ ill 1nn1mU1iil rnn1ttlif111

'.::HlR0E,[1129

15
ANNEX A. INVENTORY OF POS WITHIN PAS (adopted from BMB Technical Bulletin
No. 2017-11)

LIST OF SMALL AND MEDIUM ENTERPRISES WITHIN PROTECTED AREAS

Region: _ _ _ _ _ __

No. LOCATION ENTERPRISE

Short Description
(E.G. IP and/or
PO Community
Involved, Raw
Name of Name of Type of
Region Area* Coordinates Materials Used
PA/KBA Enterprise Enterprise
And Their
Sources,
Products/Services
Offered, Etc.)

*Description for the area should include province, municipality, locality

Accomplished by:

Noted by:
ANNEX B. RAPID ASSESSMENT FOR BDFE ENHANCEMENT ELIGIBILITY

INDICATORS YES NO NA
Impact to Biodiversity
1. Enterprise is within the Multiple-Use Zone
2. Resources/Raw Materials are indigenous but not threatened, not
indicator species
3. Complement the conservation of biodiversity-rich areas and its
threatened, indigenous, and indicator fauna and flora species if
any
4. Promote the rehabilitation of degraded/fragmented habitats of
threatened, indigenous, and indicator fauna and flora
5. Involvement in the prevention or mitigation against biodiversity
damages/impact from natural and anthropogenic causes
6. Discourage alteration of the natural landscapes
INPUT INDICATOR (raw material sourcing, extraction process and
assembly of product
7. Awareness of raw materials' natural regeneration (e.g. maturity
of timber and non-timber products, breeding season of fish)
8. Method for extraction will not have impact on the genetic
makeup/composition and population of flora and fauna species
(e.g. crossbreeding)
9. Mechanism for sustainability of raw material is in place
10. Promote the sustainable use of indigenous and traditional flora
and fauna species
11. Promote efficient use of renewable energy and materials
PROCESS INDICATOR
12. Do not cause any harm to the population and habitats of
threatened, indigenous, indicator flora and fauna species
13. Promote conservation of Philippine Biodiversity
14. Do not use strong and any harmful chemicals
OUTPUT INDICATOR
15. Finished product may likewise serve as a raw material for
another BO-Friendly product
16. By-products may be recyclable otherwise, the enterprise should
have a system for proper disposal

BIODIVERSITY-FRIENDLY ENTERPRISE INDEX

Enterprises should get an 80% - 100% YES answers in the 16 indicators above to eligible for
biodiversity-friendly enterprise enhancement
ANNEX C. LIST/PROFILE OF ELIGIBLE ENTERPRISES

This form is to be accomplished by the DENR REGIONAL OFFICES

REGION: _ _ _ _ _ _ _ _ _ _ _ _ ___;PROVINCE/S _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
NAME OF PA/CONSERVATION
AREA:- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Name Name of Locati Contact Number Locati Num Type Registrat Catego Size of Sourc Short Ass
of Peoples' onof Person, and onof berof of lOn ryof Enterpr e of Descript ets Rema
Enterpr Organiza the PO designat type enterpr work Enterpr Enterpr 1se raw ion of rks
1se tion (sitio, ion and (HHor 1se ers 1se ise& (Micro, materi business
(Busin barang Contact Individ Indic Econo Small als (input
ess ay) Details ual) of ate if m1c and material
Name/ member Male Activit Mediu s, end
Brand s and 1es m) product,
Name) (indicat femal (refer services
e if e) to offered
Male BMB etc.)
and TB
female) 2017-
11
BDFE
Form
Annex
C)

Prepared by: _ _ _ _ _ _ _ _ _ _ _ _ _Date: _ _ _ _ _ _ _ _ _ _ __

Verified/ Approved by Date: _ _ _ _ _ _ _ _ _ _ _ __
ANNEX D: ECONOMIC VIABILITY PROFILE

Date of monitoring: _ _ _ _ __

Monitoring Team:
1.
2.
3.

A. PEOPLE'S ORGANIZATION DETAILS

Name of PO:- - - - - - - - - - -
Type of Registration: _SEC _ _CD A __DOLE __ Others, pls specify _ _
Enterprise Name: _ _ _ _ _ _ _ _ __
Location (specify NIP AS Area and Province): _ _ _ _ _ _ _ __
Number of members: - -M - - F
Date/Month FA funds downloaded: - - - -
Amount downloaded: _ _ _ per SAA No: _ _ __

B. ENTERPRISE ASSETS

ITEM UNIT NO.OF UNIT TOTAL COST

UNITS COST

TOTAL

C. PRODUCT INVENTORY AND MARGINS

PRODUCT LANDED NO.OF PRICE MARGIN

COST UNITS
(specify cost
items if
available)

AVERAGE MARGIN

D. PO REVENUE
PRODUCT NO. OF UNITS NO. OF UNITS SOLD TOTAL
SOLD (before FA) (after FA) SALES (from
establishment to
date)

TOTAL

E. PO MEMBERS' INCOME

PO POSITION (if NUMBER OF MONTHLY MONTHLY

applicable) POSITIONS SALARY (before FA) SALARY (after FA)

TOTAL

Average Monthly Income of Members: _ __

F. WORKPLAN AUDIT

Signed Memorandum of Agreement: _ _ _ __

Date MOA Signed: _ _ __

Activity/Item Unit of Estimated Actual Target Actual MOVs

* Work Cost* Cost Date* Date
Measure*

*Fields to be filled out by evaluator prior to the assessment

ANNEXE: ECOLOGICAL IMPACT FORM

____________Region:
BDFE Facilitator Name:
Protected Area:
- - - -Office:------------
--------------------
PO Name:
----------------------
PO Enterprise: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Describe PO Operations briefly:

Target Resource (Biotic/Abiotic) for Management/Protection/Conservation (e.g., Water, Soil, Mangroves, wild flora and fauna):
1.
2.
3.

Tabie 1. Tar2etResource Ob.1.1ecf1ve

Target Resource Baseline Target Objective

Tabie 2. MI til! rafm2 Measures

0

Target Existing Management/Protection/Conservation Planned Management/Protection/Conservation Activities

Resource Activities
Tabie 3. Mom·torm1
. Meth 0 d
Target Resource Indicator Means of Verification Methodology for Possible Source/s of Support
Monitoring

Prepared by: Reviewed by: Endorsed by:

• I

Name ofBDFE Facilitator Name ofBBCore Name of Immediate Supervisor of the BDFE
Facilitator
ANNEX F. ASSESSMENT TOOL FOR THE APPRAISAL OF PO ENTERPRISE

1. Level 1 - PO Enter prise is Established

Criteria/ Guide Questions Allowable Actual Remarks / Means
Points Points of Verification
1.1.Enterorise Identification based on Participatory Process
1.1.1. BDFE concept explained to stakeholders 0 or 1 • Minutes of the
Meeting
• Activity Report
1.1.2. BDFE accepted and approved by the 0 or 1 • Minutes of the
community or local government Meeting
• Resolution
• Ordinance
1.1.3. Identification of target resources for 0 or 1 • Assessment
conservation Report
1.1.4. Rapid Resource Assessment/Habitat 0 or 3 • Assessment
Assessment Report
1.1.5. Source of raw material identified 0 or 1 • location map
1.2.Business Plan Development
1.2.1. Vision, Mission, and Goals Statement of 0 or 1 • Activity Report
the PO Enterprise created • Draft Business
Management
Plan
1.2.2. Use of culture, local knowledge, 0 or 3 • Activity Report
traditional skill in the business • Draft Business
appropriately Management
Plan
1.3 .Registrations
1.3.1. Legal instrument recognizing the PO has 0 or 3 • Business
been secured Permit
• Registration
1A.Management Body formed and functional

1.4.1. Management body determined and 0 or 1 • list of members

identified ofthe
enterprise
• management
body
• management
structure
• • appointment
_pa2ers
1.4.2. Management body formed and roles 0 or 3 • minutes
clarified showing
committees
• organizational
chart with clear
roles
 • enabling
documentation
1.5.Financial
1.5.1. Capital has been provided for at least 0 or 1 • work and
one-year implementation financial plan
• MOA
1.5.2. Inventory of Assets, Liabilities and 0 or 3 • Draft Business
Credits created Plan
• Recording of
assets
1.6.Social Preparation
1.6.1. IEC activities coordinated by the PO to 0 or 1 • Reports on IEC
raise BDFE consciousness in the activities
community • Photographs of
billboards
• Banners
• Posters
TOTAL

2. Level 2 - PO Enterprise is stren~thened

Criteria / Guide Questions Allowable Actual Remarks / Means
Points Points of Verification
2. l.Conservation measure in place
2.1.1. Strategies to determine how to preserve 0 or 1 • Activity Report
integrity of resources in place • Business Plan
2.1.2. Studies supporting conservation strategies 0 or 3 • carrymg
has been conducted capacity study
• limits of
acceptable
change
2.1.3. Surveillance conducted regularly 0 or 3 • Attendance of
patrollers
• patrol logs
2.1.4. Violations documented 0 or 1 • Logbook of
apprehensions
• report of
violations
• police blotter
2.1.5. Funds accessed and used 0 or 1 • expenditure
reports
• accounting
ledger
2.2.Registrations
2.2.1. Compliance to BIR requirements and 0 or 1 • transaction
specific enterprise requirements record
• permits
• clearances
2.3.Business Plan alignment to existing PAMP
2.3.1. BAMS or other relevant bio-physical 0 or 3 • Assessment
 assessment conducted Report
2.3.2. Strategies in the PAMP are aligned with 0 or 1 • Business Plan
the Business Plan
2.3.3. Partnership between PO and DENR field 0 or 1 • activity report
offices on conservation measures
established
2.3.4. Marketing plan determined and is 0 or 3 • Business Plan
incorporated in the business plan
2.4.Participatory Management
2.4.1. Benefit sharing established within PO 0 or 1 • minutes of the
meeting
• Business Plan
2.4.2. Capacity Building on Bookkeeping and 0 or 1 • Certificate of
Basic Accounting conducted Completion
2.4.3. Costing of Inventory/Assets, Liabilities, 0 or 3 • Accounting
and Credit Ledger
2.5.Economic Status baselined
2.5.1. Income status of members baselined 0 or 3 • SEAMS
TOTAL

3. Level 3 - PO is developed
Criteria/ Guide Questions Allowable Actual Remarks / Means of
Points Points Verification
3.1.The enterprise is effectively sustained for at least 3 years
3.1.1. Business plan updating 0 or 3 • Updated business
3.1.2. conservation measures reviewed and plan
updated • minutes of the
meeting
3.1.3. Revenue are generated for last 2 years 0 or 1 • Accounting ledger
• bank statements
3.1.4. Management Body able to supervise 0 or 1 • Letters with reply
management activities of the enterprise from partner for
and access technical assistance technical
assistance report
with other
partners
• minutes of the
meeting with
action points
3.1.5. Conservation measures fully operational 0 or 3 • Activity Reports
in the last 3 years • annual allocation
3.1.6. IEC program enhanced 0 or 1 • IEC program
progress reports
3.1.7. Performance Monitoring of the of the 0 or 1 • Appraisal reports
PO conducted regularly of the PO
3.1.8. Regular participatory monitoring 0 or 3 • monitoring data
conducted showing trends
• attendance sheets
showing names of
 community
members who
participated in the
monitoring
activities
3.1.9. Socioeconomic monitoring conducted 0 or 1 • SEAMS
regularly or at least once a year
3.1.10. Expansion strategy established 0 or 1 • Plan of expansion
which should be
aligned with the
rules of the E-
NIPAS law
3 .1.11. Sustainable financing strategy 0 or 3 • Resolution,
established Private-public
partnership
agreements
3.1.12. Timely renewal of permits and 0 or 3 • permits/certificate
certificates for the last 3 years s
3.1.13. Capacity Building on Biodiversity 0 or 1 • activity reports,
Conservation conducted and evaluated KAP survey
3.1.14. Performance monitoring for PO 0 or 1 • minutes of the
members established meeting
3.1.15. Feedback system in place 0 or 3 • Minutes of the
meetings,
presentations
TOTAL

4. Level 4 - PO Enterprise is sustained

Criteria / Guide Questions Allowable Actual Remarks / Means
Points Points of Verification
4.1.PO management effectively institutionalized for at least 5 years
4.1.1. Political support from the provincial 0 or 3 • Resolutions,
council or LGUs minutes of the
meeting
4.1.2. Business Plan incorporated and 0 or 1 • Higher level
recognized in broader development plans plans ofLGUs
recognizing the
PO Business
Plan
4.1.3. Management body capable of outsourcing 0 or 1 • Proposals
funds for expansion submitted,
Grants
agreements,
investment
agreements
4.1.4. Coordination with the P AMB and other 0 or 3 • minutes of the
groups clearly defined and formalized meeting
4.1.5. Cost sharing in the management of the 0 or 1 • PAMB
PAs established resolutions,
 minutes of the
meeting
4.1.6. Ecological and Socioeconomic impact 0 or 3 • Trends and
assessment conducted temporal
assessments of
ecological and
.
soc10-econom1c
.
impact, impacts
assessment
report
4.1.7. Performance monitoring and evaluation 0 or 1 • minutes of the
system linked to an incentive system meeting,
agreements of
the PO
4.1.8. Promotion of efficient use of renewable 0 or 1 • inventory of
energy and materials assets
4.1.9. Green jobs generated 0 or 3 • Payrolls
•
4.1.10. Income status improving 0 or 3 • SEAMS
4.1.11. Market linkage expansion 0 or 1 • contracts
4.1.12. Product diversification 0 or 1 • Inventory of
products
4.1.13. Feedback mechanism fully implemented 0 or 3 • Feedback forms
• Feedback
analysis
TOTAL
ANNEX G. BDFE BUSINESS PLAN

BIODIVERSITY-FRIENDLY BUSINESS PLAN

Enterprise Name :
Address:

I. Executive Summary (contains the highlight of the business plan)

II. Description of the business (contains the summary of Annex D and E results)
III. Vision and mission of the business
IV. Biodiversity significance of the business
V. SWOT analysis for BDFE
VI. Industry analysis
a. Trends and growth
VII. Product description and market
a. Product description
b. Design
c. Current market
d. Sales forecast and marketing
e. Product operation
VIII. Organizational management
a. Legal Form of Business
b. Organization Structure
c. Type of Organization
d. Labor Requirements (Manpower involved in the production, administration
and management of the BDFE)
IX. Socio-economic Benefits of the BDFE
X. Cost and Return Analysis
XI. Financial projections
XII. Sources of Financing
XIII. Trainings and Interventions
XIV.Operational/ Technical Plan of the BDFE
a. Technical/Production Activities (Detailed description of the production
process and methodology)
b. Raw materials requirement (Description of all raw materials required and
methods of extraction)
c. Technology Requirement (Machineries, equipment, tools used in the
production)
d. Labor Requirement (Manpower required in the production with work
description)
e. Waste Disposal System (Description of all activities and actions required to
properly dispose wastes in the production)
XV. Regulations and Permits
a. Government Regulations (National and local regulations which require
permits from different agencies)
b. All taxes and reports due to national and local governments
XVI. Sustainability plan (Enumerate plans developed to achieve the long-term goals of
the project)
ANNEX H. PROPOSAL OUTLINE

A. TITLE OF THE PROJECT

B. PROPONENT (Name of the PO)
C. DURATION OF PROJECT
D. PROPOSED PROJECT
BUDGET
E. Enterprise Description:
• Type of Ecosystem where raw materials are being sourced out
(put a check to the corresponding answer)
o Forest
o Grassland
o Coastal and Marine (e.g mangrove, coral reef, seagrass beds mudflats)

• Enumerate and describe main product/s

1.
2.
• Enumerate and describe secondary product/s
1.
2.
F. PROCESS DETAILS
• Outline the processes involved in producing the product/s; as for service enterprise, detail
the delivery of the service. Detail the input-process-output of the production of the
enterprise's product/s. (frequency of resource extraction, manner of extraction, method of
extraction, mechanism for sustainability of raw materials, detail the resources needed for
the production)
• How will the enterprise contribute to biodiversity conservation
• What is the biodiversity threat to the area and how can the enterprise reduce the said threat

G. MARKET CONSIDERATIONS
• Who are the buyers of the product/s?
- detail the profile of the buyers
- origin of the buyers
• Estimate number of existing buyers
H. FINANCIAL AND ECONOMIC VIABILITY
• Discuss budget allocation and funding sou.reels
- How will the grant be utilized
• How much is the expected income in the next 3 years?
• What are the economic benefits that can be derived from the expansion of the enterprise?

I. SOCIAL CONSIDERATIONS
• What are the perceived social impacts of the enterprise?
• How can the community participate in the enterprise?
• Who are the main beneficiaries of the enterprise?

J. INSTITUTIONAL ARRANGEMENTS
• Discuss the organizational chart of the People's Organization, management and staff
functions
• What other assistance needed to ensure the success of the enterprise? Possible partners and
their roles

K. Attach Work and Financial Plan

Prepared by:
ANNEX I. REQUISITES FOR ENTITLEMENT TO FINANCIAL ASSISTANCE

The PO recipient shall comply with the following requirements to be able to avail of the
financial assistance:

a. Duly accomplished Proposal Form signed by its officers (Annex 1)

b. SEC/CDNDOLE registration;
c. Authenticated copy of Articles of Incorporation;
d. Financial Report audited by an independent Certified Public Accountant, for the
past three years preceding the date of project implementation. For POs which have
been in operation for less than three (3) years, report of accomplishment or any
equivalent proof certified by its President and Secretary that it has previously
implemented similar projects shall be required, in addition to financial reports for
the years it has been in operation;
e. Disclosure by the PO of other related business, if any, and extent of ownership by
the Board;
f. Proposed Work and Financial Plan (WFP) specifying the time frame within which
the activities are to be undertaken. The use of fund shall only be good for the
current year;
g. Business Plan;
h. List and/or photographs of similar projects previously completed by the PO, if
any, indicating the source of funds for their implementation;
1. Resolution from the PO Board authorizing their President to enter into a
Memorandum of Agreement (MOA) with DENR; and
J. PO Board Resolution certifying that none of its officials or board of directors is an
agent or related by consanguinity or affinity up to the fourth civil degree to the
officials ofBMB-DENR/DENR authorized to process and/or approve the
proposal, MOA and the release of funds.
ANNEX J. MEMORANDUM OF AGREEMENT TEMPLATE

MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement (MOA) made and entered into this _ _ _day of
- - - - ~ m - - - - - - - - ~ Philippines, by and between:

The DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES -

PROVINCIAL ENVIRONMENT AND NATURAL RESOURCES OFFICE
(DENR-PENRO) OF _ _ _ PROVINCE, a government entity with office
address at _ _ _ _ _ _ __, herein represented by its PENR Officer
_ _ _ _ _ _ _ _ _ _, and herein referred to as "DENR-PENRO";
and
(Name of PO}, a people's organization duly organized and registered under the laws
of the Philippines, with office address at _ _ _ _ _ _ _ _ _ _ _ __, herein
represented by its President/Chairman, _ _ _ _ _ _ _ _ and herein referred to
as "BDFE Partner PO".

WITNESSETH:
WHEREAS, it is the policy of the state to protect the nation's natural resources and
biodiversity as well as promote the right to a healthful and balanced ecology in accord with
the rhythm and harmony of nature pursuant to Republic Act No. 11038 (Expanded National
Integrated Protected Areas System Act), amending Republic Act No. 7586, Executive Order
No. 533 the Integrated Coastal Management (ICM) Strategy, RA 9147 or the Wildlife
Resources Conservation and Protection Act and DAO 2016-26 Coastal and Marine
Ecosystems Management Program (CMEMP). One of the seven components of the Program
is the development of Biodiversity Friendly Enterprise (BDFE) which shall promote the
sustainable use of natural resources and biodiversity and at the same time create wealth and
equitable sharing of benefits to the community through the People's Organizations by
supporting micro, small and medium enterprises;

WHEREAS, the BDFE shall be implemented in National Integrated Protected Areas System
(NIP AS) sites in the country.

NOW THEREFORE, for and in consideration of the foregoing premises, both parties
hereby agreed to enter into this MOA under the following terms and conditions:

Article I
General Conditions

1.1. All proposed BDFE activities shall be anchored on Sustainable Development

principles which shall contribute to the objectives of environmental protection,
biodiversity conservation, economic growth and development and social equity;

1.2. The DENR-PENRO will make available to the BDFE Partner PO a financial
assistance in the amount of ______ (PhP - - ~ to be used
exclusively for the implementation of the BDFE consistent with the submitted
 work plan duly approved by the concerned P.O. President/Chairperson and the
DENR-PENRO which shall form an integral part of this Agreement.

Article II
Roles and Responsibilities of the DENR-PENRO

The DENR-PENRO shall:

2.1. Allocate and obligate funds to the BDFE Partner PO in the total amount specified
in the approved work plan;

2.2. Release funds amounting to the total cost for the operation I implementation of the
BDFE quarterly in accordance with the approved WFP

2.3. Inspect / evaluate / monitor actual project accomplishments, reports, items and
receipt certifications of the BDFE Partner PO through an inspection team upon
receipt of billing request following the standard accounting and auditing rules and
regulations;

2.4. Provide necessary technical assistance, capacity building and skills enhancement
to the BDFE Partner PO to facilitate the effective implementation of the BDFE;

2.5. Provide over-all guidance, supervision, and oversight to the performance of the
responsibilities of the BDFE Partner PO, ensuring that all activities are within the
scope of the approved work plan;

Articles III
Roles and Responsibilities of the BDFE Partner PO

The BDFE Partner PO shall:

3.1. Enhance the existing enterprise to be biodiversity-friendly in accordance with the
TB No. 2017-11 on BDFE and approved Work and Financial Plan with due
diligence and efficiency on the utilization of funds;

3.2. Receive funds from the DENR-PENRO quarterly in accordance with the approved
WFP

3.3. Ensure that funds provided pursuant to this MOA shall be strictly used in
accordance with the approved work plan and none may be used for any purpose
other than those expressly set forth therein;

3.4. Submit the following documents and reports to the DENR PENRO concerned:

3.4.1. Progress report (physical and financial) and photo documentation of the
on-going Biodiversity-Friendly Enterprise Development which shall serve
as basis for the release of payments after the conduct of
validation/verification of the assessment team;

3.4.2. Termination/Final Report;

 3.4.3. Other documents and reports as may be required

3.5. Allow DENR PENRO to monitor the implementation of the project even beyond
the effectivity of this Agreement for project sustainability purposes.

Article IV
Termination
4.1. DENR-PENRO may terminate the MOA based on the following grounds:

4.1.1. Fraud, misrepresentation or omission of material facts in obtaining the

MOA;

4.1.2. Failure on the part of BDFE Partner PO to start the project on the date
specified in the MOA without valid and legal justification/s and with
corresponding obligation to refund the initial amount released;

4.1.3. Abandonment of the project for a period of at least one month from the
date of discovery by the DENR of such fact with corresponding obligation
to full refund the amount released;

4.2. Violation of any terms and condition of this MOA and pertinent environment and
natural resources rules and regulations may cause the termination of this
Agreement. The Partner shall be informed in writing within fifteen (15) days from
the violations committed.

4.3. In case of disagreement on any of the terms of this MOA, the Parties may resort to
Arbitration.

Article V
Delay
The partner PO shall complete the implementation of the Project within the time
prescribed. Should the PO incur delay in its performance, PO shall accomplish target at its
own cost, without prejudice to other course of action that may be taken by DENR.
In the event of the BDFE Partner PO's non-compliance or partial compliance with the
terms and conditions of this Agreement without valid and legal justification and after due
process, it shall refund to the DENR-PENRO any payment already received in respect to
activities that have not been performed by the recipient PO in accordance with the acceptable
standard ofDENR.
Only force majeure or fortuitous event/s are considered legal justifications that will except
PO from liability.
Article VI
Settlement of Disputes
6.1. Any dispute between DENR-PENRO and the BDFE Partner PO arising out of this
MOA shall be settled amicably by the parties. If DENR-PENRO and BDFE Partner
PO fail to reach an agreement, the matter shall be referred to Arbitration to be held
within a month, in accordance with the Philippines laws. The cost and expenses of
arbitration shall be borne by the party against whom the dispute is resolved;

6.1.1. The party desiring Arbitration shall serve upon the other party a written notice
specifying the question to be arbitrated and naming its chosen arbitrator;
.'

6.1.2. During the arbitration, the implementation of the activities shall not be stopped
except for such activities as may be the subject matter of the arbitration, or is
directly affected thereby; and

6.1.3. The DENR and the BDFE Partner PO shall agree bound by any arbitration award
rendered in accordance with the above, as the final adjudication of any such
dispute.

Article VII
Amendments
No modification of, or change in this MOA, or any waiver of any of its provisions, or
any addition of contractual obligations shall be valid or enforceable, unless previously
approved in writing by the parties hereto or duly signed in the form of a written amendment
by the parties hereto, or their duly authorized representatives.

Article VIII
Entire Agreement and Severability
This MOA constitute the entire agreement between the parties and supersedes any and
all prior oral and written undertakings, considerations, agreements, representations or
understanding between them in relation to the subject matter hereof.
If any provision of this MOA is held invalid, void or unenforceable by any competent
court or authority for any reason, the other provisions of this MOA shall remain valid and
shall continue to be in force and effect.

Article IX
Effectivity and Validity
This MOA shall take effect upon signing of the Parties herein stated and shall be in
force and valid for one (1) year.

IN WITNESS WHEREOF, the parties hereto acting through their representatives duly
authorized for this purpose, affix their signatures, this _ day of _ _ _ _ _~ 2018 at

For DENR-PENRO: For BDFE Partner PO:

PENR Officer PO President

Signed in the presence of

(witness) (witness)
Funds Availability:

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES ..... )

PROVINCE OF .............. ) S.S.
CITY OF ............... )
BEFORE ME, this___day of ___2018 in _ _ _ _ _ _ _.Philippines, personally
appeared:

CTC Number: CTCNumber:

Date Issued: Date Issued:
Place Issued: Place Issued: