Republic of the Philippines
HOUSE OF REPRESENTATIVES

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No.5919

Introduced by Representative Rex Gatchalian

AN ACT
INSTITUTIONALIZING BAMBOO INDUSTRY DEVELOPMENT IN THE
PHILIPPINES, CREATING THE BAMBOO INDUSTRY DEVELOPMENT CENTER
(BIDC), APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Bamboo is a vital commodity in the Philippines. Its planting and usage help
in the mitigation of climate change and in disaster management, given its carbon
capture and cheaper reforestation cost. Moreover, bamboo can easily be converted
into a cash crop for farmers and community-based forest management agreement
holders.

In 2010, Executive Order No. 879 was issued creating the Philippine Bamboo
Industry Development Council (PBIDC) to promote the Bamboo Industry
Development Program and to provide the overall policy and program directions of the
program for all stakeholders. It mandates the use of 20% of bamboo for reforestation,
25% for the desk requirements of all public elementary and high schools in the
country, strengthening of the bamboo industry, and intensification of research on
bamboo production and utilization.

There is currently a high demand for bamboo as a raw material for furniture
and handicrafts, among others, due to the diminishing supply of wood. This has led
to the excessive harvesting of bamboo which has caused the deterioration of its
quality and quantity. This bill aims to institutionalize the PBIDC and create its
secretariat, the Bamboo Industry Development Center to formulate a holistic

National Bamboo Industry Development Program which covers research, production,


processing, marketing, consumption, capacity building, and regulation of the
cultivation of bamboo and promote investments in the bamboo industry.

In view of the foregoing, the passage of this bill is earnestly sought.

|. REX GATCHALIAN
Representative

1s District, Valenzuela City


Republic of the Philippines
HOUSE OF REPRESENTATIVES

NINETEENTH CONGRESS
First Regular Session
HOUSE BILL No.5919

_—_————

Introduced by Representative Rex Gatchalian

—_——_—

AN ACT
INSTITUTIONALIZING BAMBOO INDUSTRY DEVELOPMENT IN THE
PHILIPPINES, CREATING THE BAMBOO INDUSTRY DEVELOPMENT CENTER
(BIDC), APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Title. - This Act shall be known as the "Philippine Bamboo
Industry Development Act of 2022.”

SEC. 2. Declaration of Policy. — The State shall provide for a self-reliant and
independent economy for its people. It shall support indigenous, scientific and
technological capabilities, and skills. It shall establish a program for sustainable
consumption, production, propagation and promotion of bamboo as furniture,
construction and design materials, food and other uses. It shall promote the bamboo
industry for poverty reduction, inclusive growth, environmental conservation and
protection, agricultural productivity enhancement and climate change mitigation
and adaptation.

SEC. 3. Definition of Terms. — As used in this Act:

a) Bamboo refers to a tropical or semi-tropical fast-growing grass usually
having hollow culms and lignocellulose matrix;

b) Bamboo Backyard Farming refers to those whose plantation and operations
are basically in the house backyard, with the household members as workers. The
majority of bamboo processing enterprises in the Philippines belong to this category;

¢) Bamboo Industry refers to a sector with very high potential contribution in
the socio-economic development and environmental protection of the country. The

sector may still be classified as essentially agricultural considering that majority of


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its market and supply is essentially for agricultural requirements such as fish pens,
banana props and other low value applications like scaffoldings, and fences;

d) Bamboo Industry Development Roadmap shall provide specific programs
and projects, including the timeline for the propagation, development and
management, processing, utilization, business development, and commercialization
of the Philippine bamboo and bamboo products. It shall contain a comprehensive
national industrial strategy for the Philippine bamboo industry;

e) Bamboo Processing refers to conversion of bamboo for various products and
applications including walls, panels, trusses, handicraft, consumer products (tooth
brush, tissues, toothpicks, and chopsticks among others) and novelty products
(furniture, handicraft, and decors), focused on the possible use of bamboo as
substitutes for wood for various applications (plywood, composites, pulp and paper,
bamboo arts, and other architectural applications); and

{) Bamboo Stand refers to an aggregate of clumps for plantation occupying a
specific area and sufficiently uniform in composition (species), age, spacing, and
condition as to be distinguished from the natural and/or existing bamboo stands
(with unknown clump age). The latter stands have irregular spacing and species
composition not necessarily uniform and the clumps are randomly and widely
distributed.

SEC. 4. Objectives. — This Act aims to make the Philippine bamboo industry
competitive in the local and international markets while providing opportunities for
local employment and establishing bamboo-based community enterprises by:

a) Promoting the integrated and holistic development of the bamboo industry
in various aspects of research, production, processing, marketing, consumption,
capacity building, and regulation;

b) Ensuring that the bamboo industry has sufficient supply of quality raw
materials through the establishment and management of bamboo nurseries and
plantations;

c) Ensuring that relevant and accurate data on the bamboo industry are
collated and published by the Center created under Section 7 of this Act, in
cooperation with various government agencies, private entities and other relevant
sources, to aid in business decisions related to the industry;

4) Promoting investments in the bamboo industry by providing substantial
and attractive incentives to investors;

¢) Providing skilled labor and manpower through continuous relevant capacity


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building;

) Ensuring the provision of locally manufactured machines with improved
capacity, efficiency, and quality at competitive costs;

g) Improving bamboo industry research and development to discover new
products and technologies, and advance market access for Philippine bamboo and
bamboo products locally and internationally;

h) Providing access to markets of bamboo products locally and internationally
through aggressive trade promotions; and

i) Ensuring sustainable resources in the implementation of the bamboo

industry development program.

SEC. 5. Composition of the Philippine Bamboo Industry Development Council.
—The composition of the Philippine Bamboo Industry Development Council (PBIDC),
as provided for under Executive Order No. 879, is hereby amended as follows:

a) Secretary of the Department of Trade and Industry (DT!) as Chair;

b) Secretary of the Department of Environment and Natural Resources (DENR)
or his/her duly appointed representative, who has sufficient expertise on the
Philippine bamboo industry;

©) Secretary of the Department of Agriculture (DA) or his/her duly appointed
representative, who shall come from the Bureau of DA-Agricultural Research (DA-
BAR);

) Secretary of the Department of Science and Technology (DOST) or his/her
duly appointed representative, who shall come from the DOST— Forest Products
Research and Development Institute (DOST-FPRD));

¢) Secretary of the Department of Education (DepEd) or his/her duly
appointed representative;

) Executive Director of the Center;

g) A representative from the Department of Interior and Local Government
(DILG);

h) One (1) representative each from bamboo farmers, bamboo manufacturers,
16 and bamboo processors associations;

i) Two (2) representatives from Non-Governmental Organizations involved in
the agricultural sector; and

j) One (1) representative from the private sector involved in the bamboo
industry.

The DTI secretary may designate the Undersecretary for Regional Operations


Group (DTI-ROG) as his/her alternate and shall have the same powers as his/her
principal and his/her acts shall be considered the acts of his/her principal.

‘The representatives from the private sector, bamboo farmers, bamboo
manufacturers, bamboo processors associations, and non-governmental
associations
shall be appointed by the President of the Republic of the Philippines from the list of
nominees submitted by the DTI Secretary. The DTI Secretary shall choose the
nominees from the respective lists submitted by the different organizations and
associations. They shall serve for a term of three (3) years, and may be re-appointed
once.

The Council shall meet quarterly and may hold special meetings whenever the
need arises to consider urgent matters upon the call of the Chair or any of the council
members.

The Council shall continue to provide the overall policy and program
directions of the bamboo industry, coordinate activities of the various government
agencies and instrumentalities, and ensure the implementation, accomplishment,
and periodic review of the Bamboo Industry Development Roadmap.

The Council shall be administratively attached to the DTI.

SEC. 6. Powers and Functions of the Council. — The Council shall have the
following powers and functions, among others:

a) Formulate the Philippine Bamboo Industry Development Roadmap;

b) Identify specific programs and projects in support of, and in line with the
Philippine Bamboo Industry Development Roadmap;

¢) Identify sources of financing to expand bamboo industry development;

d) Submit annual reports to the Office of the President, the Senate Committee
on Trade, Commerce and Entrepreneurship, and the House of Representatives
Committee on Trade and Industry on the status of the implementation of the
Roadmap and the bamboo industry development in the country; and

e) Promulgate such rules and regulations and exercise such other powers and
functions as may be necessary to carry out effectively the attainment of the purposes
and objectives of this Act.

SEC. 7. Bamboo Industry Development Center (BIDC). — The Bamboo Industry
Development Center, hereinafter referred to as the Center, shall be created to serve
as the secretariat of the Council to be headed by an Executive Director.


‘The Center shall consist of divisions for (1) research and development, (2)
trade promotion and education, (3) networking and linkages, (4) internal
administration, and such other purposes deemed necessary by the Council. The
composition and staffing of the divisions shalll be prepared by the Executive Director
and approved by the Council.

The organizational structure, staffing pattern and compensation schedule of
the Center shall be drawn up in accordance with the Civil Service Commission (CSC)
law, rules and regulations, Government agencies represented in the Council shall
provide additional administrative and technical staff support upon request by the
Council.

‘The Center shall have the following powers, functions and duties:

a) Promote and encourage the establishment and management of bamboo
nurseries and bamboo plantations for commercialization, in coordination with DENR
and DA;

b) Coordinate and partner with DOST-FPRDI for continuous research and
development to advance sustainable bamboo industry development practices;

c) Work with the Council and coordinate with the DENR and DOST-FPRDI in
formulating a holistic National Bamboo Industry Development Program;

) Work to establish and create processing facilities that would accelerate the
production and commercialization of bamboo and various bamboo products;

¢) Promote the establishment and creation of bamboo farm tourism camps in
coordination with the Department of Tourism;

) Promote the commercialization and market access of appropriate, innovative
and viable bamboo industry development technologies and products;

g) Coordinate and partner with other government agencies in the
implementation of bamboo industry development programs and projects;

h) Monitor and evaluate the performance of the bamboo industry, and the
bamboo development programs and projects;

i) Coordinate and partner with the private sector, people's organizations and
nongovernmental organizations, and State Colleges and Universities in providing
assistance on matters pertaining to bamboo industry development;

j) Accept grants, donations and contributions from local and international
donors and such similar sources of funds for the implementation of this Act, subject
to the usual budget, accounting and auditing rules and regulations;


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k) Assist the Council, in cooperation with other appropriate government
agencies, in conducting a periodic review of the Philippine Bamboo Industry
Development Roadmap;

1) Conduct capability-building initiatives for farmers, farm workers,
processors, designers, and other stakeholders in the bamboo industry;

m) Gather data and create an information system related to bamboo, including
but not limited to, plantations, population, species, workers and beneficiaries,
investors, product demands and supplies, and costs and benefits for market
research;

n) Supervise the implementation of the plans and programs of the Council;

0) Manage and administer the projects approved by the Council under this
Act; and

p) Submit periodic reports to the Council on the progress and accomplishment
of bamboo industry programs and projects.

SEC. 8. The Executive Director of the Center. - The Executive Director shall be
appointed on a permanent capacity by the President of the Republic Philippines from
the list of nominees submitted by the DTI Secretary. He/she shalll be a citizen and
resident of the Philippines and must possess executive and management experience
of at least three (3) years and with considerable knowledge in bamboo industry
development.

‘The Executive Director, in addition to his/her duties in the Center, shall have
the following powers and functions:

a) Assist the Council in the performance of its tasks;

b) Provide technical and administrative support to the Council;

©) Oversee the day-to-day operations of the Center; and

4d) Perform such other functions, duties and responsibilities as may be
necessary to implement this Act.

SEC. 9. Department of Environment and Natura/ Resources (DENR) on Bamboo
‘for Commercialization. — In addition to its mandate, under the Bamboo Plantation
Development Program (BPDP), the DENR shall ensure the development and
expansion of nurseries and plantations of bamboo for commercialization and
industrial purposes,


while taking into consideration the ecological balance in areas identified for
plantation and propagation. It shall continue to conduct research and development

activities for production or propagation of bamboo.

SEC. 10. Department of Science and Technology for Research and Development
— The DOST-FPRDI shall be the main research and development arm for bamboo
utilization of the Council. It shall work closely in coordination with the Center and
other government agencies such as the DA-BAR to innovate and advance sustainable
bamboo industry development practices.

SEC. 11. Role of the Local Government Units. — Local Government Units in
cooperation with the DENR, DTI and the DOST-FPRDI, and in consultation with DA
and the National Commission on Indigenous People (NCIP) when necessary, shall
regularly conduct surveys of existing bamboo stands, nurseries and plantations in
their respective localities, and shall strengthen the local bamboo industry by
promoting bamboo enterprises in their respective localities.

SEC. 12. Provision of Incentives to Investors in Nursery and Plantation
Development and Bamboo Enterprises. — The following incentives shall be provided
to investors in plantation development and bamboo processing factories:

a) Nursery and plantation owners shall be exempt from the payment of
government share for the use of public lands for commercial bamboo plantation for
the first ten (10) years or when the plantation owner starts to harvest the nursery or
plantation subject to existing tenurial agreement with concerned government
agencies;

b) Plantation owners in public lands shall be exempt from the payment of
forest charges that may be imposed by national government and other fees or taxes
imposed by local government units;

c) Bamboo plantations shall be accepted as among the collaterals for loans in
government-owned or controlled banks, subject to its rules and regulations;

a) Bamboo plantation developers and bamboo processors shall be given
priority to access credit assistance and guarantee schemes being granted by
government-owned, controlled and/ or supported financial institutions;

¢) Bamboo plantations shall not require a cutting permit for harvesting nor
shall its produce need a transport permit for transporting: Provided, That such


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plantation is registered with the Community Environment and Natural Resources
Office (CENRO) of the DENR;

f) Bamboo plantations and plantation development equipment shall be
covered by the Philippine Crop Insurance Corporation (PCIC);

g) For tenured bamboo plantation owners, upon the premature termination of
the tenurial agreement with no fault of the holder, all capital improvements,
depreciable permanent and semi-permanent improvements such as roads, buildings,
nurseries including the planted and standing bamboo and other intercrops,
introduced and retained in the area, shall be evaluated and the holder shall be
entitled to a fair compensation thereof, the amount of which shall be mutually agreed
upon by both the DENR and the tenure-holder and in case of disagreement between
them, by arbitration through a mutually acceptable and impartial third party
adjudicator through the DENR; and

h) The export of bamboo poles shall be regulated by the Council while other
bamboo products, may be exported without restrictions in volume.

SEC. 13. Appropriations. — The sum of One Hundred Million Pesos
(P100,000,000.00) to be sourced from the unexpended contingency fund of the Office
of the President, the existing budget for bamboo industry development under the
DTI, the existing budget allocation for DENR-FPRID's bamboo related research and
development, and the existing budget allocation for DENR's BPDP, are hereby
appropriated for the initial budgetary requirements of the Center. Thereafter, such
amount as may be necessary for the continuous operation of the Center shall be
included in the annual GAA. The budgetary requirements of cooperating agencies
shall be incorporated in their respective annual budgets.

SEC. 14. Implementing Rules and Regulations. — Within six (6) months from
the effectivity of this Act, the DTI, in consultation with other concerned government
agencies, the academe, the private sector, and non-government organizations, shall
promulgate the necessary implementing rules and regulations for the effective
implementation of this Act.

SEC. 15. Separability Clause. — If any portion or provision of this Act is
declared unconstitutional or invalid, the remainder of this Act or any provisions
hereof not affected thereby shall continue to be in force and effect.


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SEC. 16. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, rule or regulation inconsistent or contrary to
the provisions of this Act is hereby repealed or modified accordingly.

SEC. 17. Effectivity. —This Act shall take effect after fifteen (15) days following

its complete publication in the Official Gazette or a newspaper of general circulation.

Approved,