The Environmental Management Bureau (EMB) in Western Visayas has issued a cease and desist order (CDO) against Hacienda Asia Plantations Incorporated (HAPI), suspending all land development activities—including quarrying and road construction—related to its P2-billion palm oil project in Candoni, Negros Occidental.
EMB-6 Enforcement Division Chief Vicente Losbañes told Bacolod-based media on Friday, June 20, that the CDO was signed on June 5 and officially served to HAPI on June 13.
The order halts all earth-moving operations pending the resolution of regulatory and environmental issues tied to the project.
The bureau’s action follows mounting calls from various sectoral groups and local officials—including Negros Occidental Governor Eugenio Jose Lacson—for the EMB to intervene and examine the project’s compliance with environmental policies.
In a statement, Lacson welcomed the EMB’s intervention, acknowledging its “prompt response and the proper exercise of regulatory authority in issuing the order.”
He also expressed the expectation that HAPI will fully cooperate and take the necessary steps to address the concerns raised by stakeholders.
He added that the CDO earlier issued by the provincial government applied only to the company’s quarrying activities, which fall under the Provincial Mining Ordinance.
The Negrosanon Initiative for Climate and the Environment (NICE) has also been actively holding HAPI accountable for its violations.
Aside from operating without an ECC, the company continues to defy the Provincial Environment and Management Office (PEMO) policy by quarrying without a permit and reportedly has not settled its fines, NICE said.
IFMA controversy
At the heart of the controversy is the Integrated Forest Management Agreement (IFMA) granted to HAPI by the Department of Environment and Natural Resources (DENR).
Losbañes said the EMB is currently checking whether the IFMA permits palm oil cultivation, as such agreements are generally intended for forestry projects—typically involving the planting of fruit-bearing and forest trees.
He also noted that Environmental Compliance Certificates (ECCs) for IFMA projects are usually issued at the harvesting stage.
An ECC is an official document issued by the EMB certifying that a proposed project is not expected to cause significant adverse environmental impacts, provided the proponent adheres to specified conditions and mitigation measures.
According to Losbañes, the EMB is awaiting formal clarification from DENR Region VI on whether HAPI’s IFMA authorizes palm oil cultivation or is strictly intended for reforestation. Part of this review involves examining the company’s approved Comprehensive Development and Management Plan (CDMP).
The EMB can only move forward once these issues are resolved—particularly if the IFMA explicitly permits oil palm cultivation, he added.
He also stressed that the DENR must also specify how much of the land is allocated for forest trees and how much for palm oil. If the portion intended for palm oil has already been clarified, the EMB may issue an ECC.
Previous clarifications
Meanwhile, in a letter dated February 3, 2025, addressed to HAPI Director Alfred Joseph S. Araneta, EMB Assistant Secretary and Director Jacqueline Caancan clarified the bureau’s position on ECC exemptions for the Candoni palm oil project.
Caancan confirmed that the project is exempt from securing an ECC during its initial development phase, citing Department Administrative Order No. 30, Series of 2003.
However, she emphasized that this exemption applies only to early activities—such as tree planting or reforestation—and does not cover subsequent operational phases.
She stressed that “prior to the cutting, utilization, and transport of forest products, an ECC and all other necessary permits and clearances must be secured.”
Her clarification was in response to a January 15, 2025, letter from HAPI requesting confirmation on whether the project qualified for exemption, based on a 2011 letter issued by then-EMB officer in charge (OIC) Director Juan Miguel Cuna.
That earlier guidance stated that development may proceed without an ECC during initial phases, provided all other required permits from national agencies and local government units are obtained.*
Reymund Titong is a Filipino journalist steadily building his voice in the field of news reporting, driven by a commitment to tell meaningful and relevant stories.
He serves as a correspondent for Rappler, maintains a personal blog on Medium, and is the communications officer of Hope Builders Organization Negros Island.