Kawayan Act

senate Office of the sorcretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) 25 NOV 17 P3:40 RECEIVED BY: SENATE Senate Bill No. 1532 Introduced by Senator JOEL VILLANUEVA AN ACT STRENGTHENING THE DEVELOPMENT OF THE BAMBOO INDUSTRY IN THE PHILIPPINES AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE With the growing global awareness of climate change, bamboo is gaining popularity in the domestic and international markets as a sustainable resource in the manufacturing of industrial products or as a construction material. The bamboo has been hailed as a sustainable product since it can grow rapidly without the need for replanting and without chemical pesticides and fertilizers. In 2020, the Asia-Pacific region accounted for 80% of global bamboo product trade. This trend is expected to continue, with the global bamboo market projected to reach USD 82.9 billion by 2028.4 On a global scale, the value of the world's bamboo market received significant growth and was estimated to be at 67.13 billion in 2024.2 Business Wire. The Global Bamboo Market is Projected to Reach $82.90 Billion by 2028, at a CAGR of 5.7% - ResearchAndMarkets.com. Published on 30 November 2021. Available at https://www.businesswire.com/ news/home/ 20211130005687/en/The-Global-Bamboo-Market-is- Projected-to-Reach-82.90-Billion-by-2028-at-a-CAGR-of-5.7---ResearchAndMarkets.com (Accessed on 2 July 2025). Market Reports World. Bamboos Market Size, Share, Growth, and Industry Analysis, By Type (Bamboos Products Board, Bamboos Pulp, Daily Bamboos Products, Bamboo Furniture, Other), By Application (Residential, Commercial), Regional Insights and Forecast to 2033. Published on 16 June 2025. Available at https://www.marketreportsworld.com/market-reports/bamboos-market- 14714803#:~:text=Bamboos%20Market%200verview,the%20benefits%20of%20bamboo%20pro ducts (Accessed on 2 July 2025).

Recognizing the enormous potential of the bamboo industry, this bill seeks to institutionalize the goals of Executive Order No. 879 (series of 2010), which created the Philippine Bamboo Industry Development Council (PBIDC). This bill also seeks to strengthen the incentives, assistance, and programs available to the Philippine bamboo industry to ensure its rapid development. Among others, this bill mandates the formulation of a Philippine Bamboo Industry Development Roadmap and the institutionalization and establishment of the PBIDC. The Roadmap shall include, but not be limited to, programs and projects for the scientific propagation, development and management, processing, utilization, business development, and commercialization of Philippine bamboo and bamboo products. On the other hand, the PBIDC shall provide the overall policy and program direction and coordinate the activities of the various agencies and instrumentalities to ensure the implementation, accomplishment and periodic review and enhancement of the Roadmap. Indeed, the humble bamboo represents an important resource with tremendous economic, ecological, and environmental benefits for improving rural livelihood, saving forests, and preventing environmental problems. 3 In view of the foregoing, the immediate passage of this bill is earnestly sought. 3 IOP Conference Series: Earth and Environmental Science. Research on the Utilization and Development of Bamboo Resources through Problem Analysis and Assessment. Published in 2019. Available Retrieved from https://iopscience.iop.org/article/10.1088/1755-1315/300/5/052028 (Accessed on 2 July 2025).

Senate Office of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES NOV 17 P3:40 First Regular Session RECEIVED BY: SENATE Senate Bill No. 1532 Introduced by Senator JOEL VILLANUEVA AN ACT STRENGTHENING THE DEVELOPMENT OF THE BAMBOO INDUSTRY IN THE PHILIPPINES AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Title. - This Act shall be known as the "Kawayan Act."

SEC. 2. Declaration of Policy. - It is the policy of the State to foster a self-

reliant and independent economy that supports indigenous, scientific and technological capabilities, and skills improvement. The State aims to promote and support industries that generate employment, 6 especially in rural areas, reduce poverty, foster a sustainable environment, 7 integrate cultural development, and mitigate the impacts of climate change. Recognizing the strategic importance of bamboo as a sturdy, versatile, and renewable material that can be a sustainable source of livelihood and a catalyst for agro-industrial productivity, the State shall ensure the integrated and continuous development of the Philippine bamboo industry through policies and programs that will encourage bamboo planting, accelerate the development of bamboo-based products and designs, and promote Philippine bamboo products in the domestic and international markets. Toward this end, it shall establish a 15 Roadmap for the sustainable production, utilization, propagation, marketing, and

1 promotion of bamboo as furniture, food, construction and design material, and 2 other uses and provide substantial and 3 attractive incentives to help stimulate the bamboo industry.

SEC. 3. Objectives. - This Act aims to make the Philippine bamboo industry

5 competitive in the local and international markets while providing opportunities for 6 local employment and establishing bamboo-based community enterprises by: 7 (a) Promoting the integrated and holistic development of the bamboo industry in various aspects of research, production, processing, marketing, consumption, capacity building, and regulation; 10 (b) Ensuring that the bamboo industry has sufficient supply of quality raw materials through the establishment and management of bamboo nurseries and plantations; (c) Promoting investments in the bamboo industry by providing substantial and attractive incentives to investors; (d) Providing skilled labor and manpower through continuous relevant capacity building; (e) Ensuring the provision of locally manufactured machines with improved capacity, efficiency, and quality at competitive costs; (f) 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; (g) Providing access to markets of bamboo products locally and internationally through aggressive trade promotions; and (h) Ensuring sustainable resources in the implementation of the bamboo industry development program.

SEC. 4. Definition of Terms. - For purposes of this Act, the following terms

are hereby defined as follows: (a) Bamboo refers to tropical or semi-tropical fast-growing grass usually having hollow culms and lignocellulose matrix; (b) Bamboo Industry refers to the industry associated with the planting and cultivation of bamboo for sustainable raw materials and bamboo-based

products, including, but not limited to, handicrafts, bamboo shoots, bamboo utilized for construction purposes, bamboo for industrial production involving mechanized processing of larger volumes of culms, such as for flooring, laminated furniture, chopsticks, mat boards, charcoal, paper and pulp, biomass, pellets, textiles, and unprocessed bamboo culms utilized in applications such as scaffolding and traditional construction; 7 (c) Bamboo Processing refers to the process of conversion of bamboo for various products and applications; 9 (d) Bamboo Plantations refer to aggregates of clumps 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; and (e) Bamboo Natural Stands refer to sporadically distributed and existing clumps with different bamboo species occurring in a given area.

SEC. 5. The Philippine Bamboo Industry Development Roadmap. -

There shall be a Philippine Bamboo Industry Development Roadmap (PBIDR), hereinafter referred to as the Roadmap, which sets forth a comprehensive national strategy for the Philippine bamboo industry and provides 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 be a 22 five-year Roadmap subject to regular review and updating and shall be supported by an annual work and financial plan for the effective implementation of the law. The Roadmap shall be guided by the following objectives, among others: (a) To make available a sufficient supply of bamboo raw materials for various industries and end products; (b) To establish vibrant bamboo enterprises for domestic and international markets; (c) To develop bamboo-based communities with elevated income and freedom from poverty;

1 (d) To establish a policy environment supportive to the development of the bamboo industry; (e) To use bamboo as a medium to help attain the country's desire for sustainable environmental sustainability and climate change adaptation and mitigation; (f) To realize a significant contribution of the bamboo industry to the Philippine economy and to inclusive growth; and (g) Identify other necessary activities approved by the Council.

SEC. 6. Philippine Bamboo Industry Development Council (PBIDC).

10 - The Philippine Bamboo Industry Development Council, created under Executive Order No. 879, series of 2010, hereinafter referred to as the Council, is hereby reconstituted and shall be composed of the following: (a) Secretary of the Department of Trade and Industry (DTI) as Chairperson; (b) Secretary of the Department of Environment and Natural Resources (DENR) as Vice-Chairperson; (c) Secretaries of the Department of Agriculture (DA), the Department of Science and Technology (DOST), the Department of Interior and Local Government (DILG), and the Chairperson of the National Commission on Indigenous Peoples (NCIP), as members; and (d) Three (3) representatives from the private sector, non-governmental organizations (NGOs) involved in the bamboo industry and agriculture, and from bamboo farmers, bamboo manufacturers, and bamboo process associations as members, who shall serve for a term of three (3) years and may be reappointed once. The DTI Secretary shall appoint them from a list of at least six (6) nominees submitted by different organizations and associations. The Council shall meet quarterly and may hold special meetings whenever the need arises to consider urgent matters upon the call of the Chairperson or any of the Council members: Provided, That each Council member may designate their representatives whose rank shall not be lower than an Assistant Secretary or its equivalent.

The Council shall be assisted by a Secretariat headed by an Executive 2 Director. Other member agencies of the Council shall provide additional 3 administrative and technical staff support on secondment or detailed arrangement to the secretariat upon the determination by the Council of the necessity for such 5 augmentation. The appointment of officers and employees of the secretariat shall 6 be in accordance with civil service laws.

SEC. 7. Powers and Functions of the Council. - The Council shall have

the following powers and functions, among others: (a) Formulate and publish the PBIDR, which shall be updated and revised periodically as may be determined by the Council; (b) Identify specific programs and projects aligned with the PBIDR; (c) Identify the specific roles and ensure compliance and coordination among government agencies for the attainment of the goals laid out in the PBIDR; (d) Lead the creation and serve as the host organization to maintain a national and integrated 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, and continuous research and development to advance sustainable bamboo industry development practices; (e) Identify sources of financing and facilitate credit windows with government financial institutions to expand bamboo industry development; (f) Promote the establishment of additional processing facilities that would accelerate the production and commercialization of bamboo and various bamboo products in the domestic and international markets and identify land areas devoted to bamboo plantations; (g) Promote the establishment and creation of bamboo farm tourism camps in coordination with the Department of Tourism (DOT); (h) Implement mechanization of production in the bamboo industry through the provision of machinery and equipment; (i) Harmonize and institutionalize fragmented capacity-building, business mentoring, and entrepreneurship programs, of relevant government agencies

for farmers, farm workers, processors, designers, and other stakeholders in the bamboo industry; (i) Strengthen market access, linkage and promotion of Philippine bamboo and locally made bamboo-based products through extensive marketing strategy; 5 (k) Promote the establishment of an agri-insurance program for bamboo plantations and farmers; 7 (1) Coordinate and partner with the private sector, people's organizations and NGOs, and state colleges and universities in providing technical assistance to bamboo farmers and the industry commensurate to the size of the bamboo plantation or farm; (m) 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; (n) Appoint the official representative of the Philippines to international bamboo organizations; (o) Submit annual reports on the status of the implementation of the Roadmap and the bamboo industry development in the country to the Office of the President, the Senate Committee on Trade, Commerce and Entrepreneurship, and the House of Representatives Committee on Trade and Industry; (P) Recommend to the Department of Budget and Management (DBM) the required yearly appropriations for the plan and implementation of the bamboo industry development programs and ensure the inclusion of proposals, through program convergence budgeting to avoid duplication of funding for similar programs, activities, and projects by the implementing agencies; and (q) Promulgate 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. 8. Executive Director. - By a vote of a simple majority of all its

members, the Council shall appoint an Executive Director who shall head the secretariat and serve as the administrative officer of the Council. The appointee

must possess competencies and knowledge in bamboo industry development and 2 shall have a fixed term of six (6) years and may be reappointed, subject to the 3 approval of the Council. With the concurrence of the Council, the Executive Director shall determine 5 the staffing complement as to the organizational structure, staffing pattern, and 6 compensation system of the Secretariat.

SEC. 9. Use of Bamboo in Environmental Rehabilitation,

8 Conservation, and Protection Programs of the National Government. - 9 The DENR shall use bamboo as the planting material for at least twenty-five 10 percent (25%) of its annual reforestation and rehabilitation programs, especially in provinces and towns that are engaged in or have the potential to engage in bamboo-based industries, or where trees are difficult to grow because of poor site quality, susceptibility to erosion or adverse and steep gradients. The Mines and Geosciences Bureau (MGB) shall likewise encourage mining contractors and permit holders to plant bamboo outside the disturbed areas mining sites, subject to pertinent rules and conditions as determined by relevant agencies.

SEC. 10. Use of Assistance Funds for Small and Medium Bamboo

Enterprises. - Twenty percent (20%) of DOST's small and medium enterprises (SMEs) assistance funds such as the Small Enterprise Technology Upgrading Program (SETUP) and the Technology Application and Promotion Institute (TAPI) venture capital program shall be allocated to bamboo-based enterprises.

SEC. 11. Promotion of Bamboo Products in Domestic and

International Markets. - The DTI, the DOT, and their attached agencies mandated to promote domestic products, shall be directed to conduct aggressive marketing and trade campaigns of bamboo and bamboo products through domestic and international expositions, fairs, and exhibits. The DTI shall likewise be mandated to scale up domestic investment promotion by hosting business-matching activities through its existing micro, small and medium enterprises (MSMEs) programs, to prioritize the access of its shared services facilities, and to provide marketing assistance through its One Town One Product (OTOP) and other shows and concept stores for the bamboo industry.

SEC. 12. Research, Development, and Innovation for the Bamboo

2 Industry. - The DOST, in coordination with other government and private research institutions, shall conduct research and development on bamboo, innovate to develop more marketable bamboo-based products for both domestic 5 and international consumers, and advance sustainable bamboo industry 6 development practices.

SEC. 13. Use of Bamboo in Public Schools and Government Facilities.

- As far as practicable, at least twenty-five percent (25%) of all the annual school desks and armchairs requirement of all public elementary and secondary schools 10 nationwide procured by the Department of Education (DepEd) shall be made from bamboo. The use of bamboo in furniture and fixtures of government facilities shall also be considered when feasible.

SEC. 14. Incentives. - The following incentives shall be provided:

(a) The Board of Investments (BOI) shall classify bamboo farms/plantations, production or processing thereof, and other bamboo-related activities as preferred areas of investments under its Strategic Investments Priority Plan (SIPP) subject to pertinent rules and regulations; (b) Nursery and plantation owners shall be exempt from the payment of rent for the use of public lands for commercial bamboo plantation subject to existing tenurial agreements with concerned government agencies; (c) Bamboo plantation owners in public lands shall be exempt from the payment of forest charges that may be imposed by the national government; (d) The produce of Bamboo plantations shall be accepted as among the collaterals for loans in government-owned or controlled banks, subject to its rules and regulations; (e) 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; (f) Bamboo plantations shall not be required a cutting permit for harvesting nor shall their produce need a transport permit for transporting: Provided, That such plantation is registered with the Community Environment and Natural Resources Office (CENRO) of the DENR;

1 (g) Bamboo plantations and plantation development equipment shall be covered by the Philippine Crop Insurance Corporation (PCIC); and (h) 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.

SEC. 15. Appropriations, - The amount necessary for the initial

implementation of this Act shall be charged against the current years appropriations of the departments/agencies concerned. Thereafter, such sums as may be necessary for the continued implementation shall be included in the annual General Appropriations Act (GAA).

SEC. 16. 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 NGOs shall promulgate 20 the necessary implementing rules and regulations (IRR) for the effective implementation of this Act.

SEC. 17. Separability Clause. - If any portion or provision of this Act is

declared unconstitutional, the remainder hereof or any provisions not affected thereby shall remain in force and effect.

SEC. 18. Repealing Clause. - Any law, presidential decree or issuance,

executive order, letter of instruction, rule, or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

SEC. 19. Effectivity. - This Act shall take effect fifteen (15) days after its

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