In 2009, the Department of Environment and Natural Resources (DENR) awarded a 25-year Integrated Forest Management Agreement (IFMA) to Hacienda Asia Plantation Incorporated (HAPI), a joint venture between the Consunji family's Sirawai Plywood and Lumber Corporation and Alfred Joseph Araneta. The project involves converting approximately 6,652 hectares of forest and grassland in Barangays Gatuslao, Agboy, and Payauan into a palm oil plantation. Notably, around
4,000 hectares of this land are inhabited by Indigenous Peoples (IPs), as reported by a local news agency.
Approximately 1,000 families face displacement due to the expansion of the palm oil plantation, with many having cultivated these lands for generations, growing crops such as corn, pineapple, sugarcane, and vegetables. Residents also allege that Hacienda Asia Plantation Inc. (HAPI) failed to secure Free, Prior, and Informed Consent (FPIC) from the affected Indigenous Peoples (IP) communities—a requirement under Philippine law for projects that impact ancestral domains. Additionally, the project reportedly commenced without obtaining the necessary Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR), resulting in a Notice of Violation from the Environmental Management Bureau.
As of the latest reports, the project remains contentious. According to the Multipartite Monitoring Team (MMT), the palm oil project has caused significant environmental degradation. Inadequate erosion control resulted in visible soil erosion in nurseries and terraced areas, with no silt traps or vegetation to prevent runoff from entering water bodies. Riparian zones were cleared and converted for planting, narrowing waterways and increasing siltation, which threatens aquatic ecosystems. A large-scale excavation reshaped a hill without proper hauling or stabilization, while unplanned structures and roads contributed further to soil erosion and sedimentation due to the lack of an ECC. Additionally, solid waste management remains unaddressed, and boundary disputes have emerged, compounding the project's negative impacts.
We would like to highlight that the Multipartite Monitoring Team (MMT) recommends the issuance of a Notice of Violation and a Cease and Desist Order against HAPI for its ongoing large-scale extraction, excavation, earth-moving activities, and other preparatory or related quarrying or mining operations within the IFMA project area, as stipulated under Section 76 of Provincial Mining Ordinance No. 2023-001.
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