Forest Landuse Agreement for Tourism Purposes (FLAgT) 1 is a contract between

the DENR and a natural or jurisical person, authorizing the latter to occupy, manage,
and develop any forestland of the public domain for tourism purposes. FLAgT
ensures development of tourism for national activity while maintaining sustainable
development by allowing qualified persons to use forestlands for tourism purposes.
The contract shall subsist for a period of 25 years and subject to renewal for the same
period upon mutual agreement of the parties. Such contracts may cover landuses such
as Bathing Establishments, Campsites, Ecotourism Destination, and Hotel Sites.

How Areas for FLAgT are Identified and Delineated2:

1. CENROs shall identify forest lands which are suitable and available within
their area of responsibility which shall not be covered by pending applications or
existing forestry tenurial and/or forest use instruments.
2. A technical description and preliminary map of the identified sites shall be
forwarded to the Regional Executive Director (RED) who shall organize a composite
team which shall then verify the suitability of the area and determine if there are valid
land claims and forest occupants thereat. The final output of the team consists of the
metes and bounds of the FLAgT area using a technical description and a map scale;
request for the indorsement of the LGU concerned; and indorsement to the RED for
approval.
3. Upon approval, copies of the map with the technical description shall be
distributed to the Forest Management Bureau of the DENR, the PENRO, and the
CENRO for recording under the FLAgT Registry.
Note: Areas with vested rights, licences/permits or other tenurial instruments may
be made available for FLAgT upon the issuance of a waiver of right by the holder of
such vested right, etc. If the area is covered by a Certificate of Ancestral Domain/
Land Claim/Title, it needs a grant of free and prior informed consent (FPIC) and
certification of precondition. If the area is covered by the National Integrated
Protected Areas System (NIPAS), it must comply with the fulfillment of appropriate
requirements for those protected areas.3

Who may apply for a FLAgT?4

Filipino citizens of legal age or associations, corporations, cooperatives,
partnerships, or a juridical person at least 60% of the capital of which is owned by
Filipino citizens who are capable to develop the applied area for tourism purposes.

Application Requirements5
1. For Individual Applicants, birth certificate or a certified copy of certificate of
naturalization as the case may be. For corporations, associations or partnerships,
SEC Registration Certificate, the Articles of Incorporation/Partnership, and a
resolution designating the authorized representative of said corporation;
2. Indicative Development Plan on how the area will be developed; and
3. Clearance and other authorization required for areas covered by specific laws
such as Palawan.

1
Sec. 2.11, DENR AO 2004-28, August 25, 2004
2
Sec. 9, ibid
3
Sec. 3, ibid
4
Sec. 6, ibid
5
Sec. 8, ibid
Bidding Procedure6
Prospective Bidders qualified under sec. 9 hereof shall be invited to pre-qualify to
bid by announcement by way of publication in two (2) newspapers of general
circulation for two (2) consecutive weeks and through the DENR and DOT websites.
Those who want to pre-qualify shall submit five copies of the requirements under
section 8 hereof.
The FLAgT Bids and Awards Committee (FLAgTC) shall, within 10 working
days from the deadline of submission of prequalification applications evaluate the
completeness of the requirements. The prospective bidders shall show proof of
available capital to undertake the activities in their respective plans. Those who will
be identified as PREQUALIFIED shall be informed withon five (5) days after such
approval.
The area subject of bid shall be awarded to the one who has the highest entry fee
offer which is prescribed by the rules. If there are two or more equal bids, another
sealed bidding shall be conducted between them.

Existing Special Land use Permits may be converted to FLAgT upon satisfaction of
the DENR’s monitoring and evaluation system.

Terms and Conditions of FLAgT7

Within six (6) months from the issuance of the FLAgT, the holder shall delineate
and mark on the ground the boundaries of the FLAgT, preserving monuments and
other landmarks within the area. The Site Management Plan (SMP) shall also be
submitted within three (3) months of the issuance of the FLAgT, along with the
payment of a performance bond. An Environmental Compliance Certificate (ECC)
shall also be secured prior to the conduct of any activity in the area.
The RED shall informed on any change in the ownership of the company or
corporation of any holder of a FLAgT. If the FLAgT expires and is not renewed, the
same must be surrendered to the RED.

The FLAgT shall not be an obstruction to the free navigation8 of any stream, creek, or
river or marine coastal area adjoining or flowing through the area. Nor shall it
interfere with the passage of people in the same area.

Payment of Government Share and surcharges for late payment9

The government share shall be 5% of the most recent zonal value of the commercial
zone within the barangay or the nearest barangay within the municipality. To be paid
within 30 days upon the issuance of the FLAgT. Failure to pay within the period shall
incur an 8.33% surcharge for monthly for late payment or 100% for one year.
Reevaluation may be had every five years thereafter.

Grounds for the Suspension and Cancellation of FLAgT10

The RED may suspend or cancel any FLAgT upon its violation or on any of the
following grounds:
For suspension:
- failure to settle administrative dues after three consecutive notices;
6
Sec. 12, ibid
7
Sec. 14, ibid
8
Sec. 14.10, ibid
9
Sec. 16. ibid
10
Sec. 17, ibid
 - failure to provide necessary protection to the area;
- occupation of a greater area other than that specified in the agreement;
- using the area for other purposes or allowing unauthorized persons the use
thereof.

For the cancellation:

- if the privilege was obtained through fraud, misrepresentation or omission of
material facts;
- abandonment of the area or failure to exercise the privilege granted within six
(6) months from the issuance of the FLAgT without justifiable cause;
- failure to introduce improvements/developement within the prescribed period as
indicated in the development/management plan; and
- repeated violations of any of the grounds for suspension.

Transfer of a FLAgT11
The FLAgT holder may transfer, exchange, sell or convey the FLAgT or any
rights therein if authorized by the DENR Secretary and if:
- the FLAgT has been in existence for at least three (3) years;
- there has been faithful compliance of the terms and conditions of the FLAgT
and the implementation of the SMP;
- the transferee has all the qualifications and none of the disqualifications to hold
a FLAgT area; and
- the transferee shall assume all the obligations and responsibilities of the
transferor.

11
Sec. 18. ibid