October 16, 2002

DAR OPINION NO. 23-02

Hon. Rodolfo O. Reyes
Administrator and Chief Executive Officer
Cagayan Economic Zone Authority
7/F Westar Building, 611 Shaw Blvd.
Pasig City

Dear Administrator Reyes:

This refers to your letter dated September 10, 2001, inquiring on whether or not Cagayan Economic Zone Authority (CEZA) could pursue its proposal to convert all agricultural lands within the planned development area of the Zone through a presidential proclamation.

You alleged that you are encouraged with our response contained in our letter dated August 21, 2001 (DAR Opinion No. 14, Series of 2001) specifically its penultimate paragraph, that your request would be given due course should the subject areas covered in your proposed proclamation be found outside the areas non-negotiable for conversion; that you further alleged you have also been previously furnished a copy of Secretary Hernani Braganza's letter to Secretary Manuel A. Roxas II dated April 17, 2001 informing him that, "while ECOZONE projects are prioritized by the government, these projects are not exempt from the land use conversion process"; that you would like to know whether CEZA could pursue its above-stated proposal.

May we clarify that the aforesaid qualifying statements are premised on Section 1.B, last paragraph of Presidential Administrative Order No. 363, Series of 1997 and Section 4 of DAR Administrative Order No. 01, Series of 1999, copy attached, which provide that "in all cases of applications for conversion involving areas non-negotiable for conversion shall not be given due course, regardless of whether all or portions thereof are within areas highly restricted from conversion or within priority development areas for conversion."

Conversely, the above underscored provision mean that if it falls outside areas non-negotiable for conversion then it may be given due course. Hence, the existence of the said provision in the penultimate paragraph of DAR Opinion No. 14, Series of 2001. The word "may" thereof is purposely to emphasize that the granting of conversion in this instance shall be on a case to case basis. This provision is in accord with Section 8 (a) of DAR Administrative Order No. 01, Series of 1999 which states that "Conversion may be allowed if the land subject of application is not among those considered non-negotiable for conversion"

Further, the existence of other mandatory provisions which qualify areas feasible for conversion such as Section 5 of DAR Administrative Order No. 01, Series of 1999 pertaining to areas that are highly restricted from conversion, likewise, Section 8 of the said Act, which provides the criteria for conversion that would serve as guide in the resolution/approval of applications for conversion clearly affirmed conversion on a case to case basis and not a massive conversion through presidential proclamation.   AaCcST

Furthermore, may we stress that this Department has consistently taken the position that agrarian reform and other programs of the government which need the use of land are complementary programs of the government. Hence, there is a critical need to balance our goals in these government programs. Thus, if ever we allow the divestment of certain agricultural lands to non-agricultural uses we limit same to marginal agricultural areas in order to preserve the limited areas available for food production and to sustain the increasing requirements for food supply caused by the rapid population growth.

In addition, allowing the sweeping conversion of agricultural lands through the issuance of presidential proclamation may open floodgates for other regions or provinces to avail of same. The eventual result is a diminution of CARP coverage and a greatly weakened and watered-down agrarian reform program which is not the intent of the Constitution and the Comprehensive Agrarian Reform Program.

Thus, your anticipation that your request would be given due course in light of the subject areas covered by the requested presidential proclamation allegedly do not fall under those included under Section 4 of DAR Administrative Order No. 01, Series of 1999, regarding "areas non negotiable for conversion" is not a sufficient basis for the DAR to give its blanket concurrence to the proposed presidential proclamation due to the above-cited reasons.

In view of the foregoing, and considering the parameters prescribed for conversion may we express our sincere regret that we could not give our blanket concurrence on the proposed proclamation.   AIcECS

We hope to have clarified the matter.

Very truly yours,

(SGD.) ATTY. VIRGILIO R. DE LOS REYES
Undersecretary
Policy, Planning and Legal Affairs Office