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                         Chapter 11
                              
                   Fees and Cost of Review




Section 1.0 of Article VIII:  Payment of Fees

      All  proponents, upon submission of the IEE/EIS, shall
pay  a  filing fee of PHP 310.00, a processing  fee  of  PHP
1,750.00, and a legal and research fee of PHP 70.00.

NOTES:

      The  fees  enumerated above must all be  paid  by  the
proponent,  regardless  of whether  the  ECC  is  eventually
granted  or  denied.  These fees cover the  basic  costs  to
government of the processing of proponent�s application.

     When what is sought is not an ECC, but a certificate of
non-coverage, only the filing fee of PHP 310.00 needs to  be
paid by the applicant.


Section 2.0    Additional Costs

      The proponent shall be responsible for the payment  of
all  costs  relating  to  the  review  of  its  IEE/EIS,  in
accordance with the guidelines in the EIS Procedural Manual.

NOTES:

      The  required  fees  cover only  the  basic  costs  of
processing  the proponent�s application, i.e., the  cost  to
EMB  or  the  Regional  Office  of  the  procedural  review.
Substantive  review  of  the application,  however,  entails
substantial resources that can not be absorbed by the EMB or
Regional  Office  budget.   Thus,  review  that  relies   on
government money is often slow.

      In  an  effort  to  speed  up  review  of  proponent�s
application, the DENR has now transferred the responsibility
of  shouldering  all  costs attendant to  the  review  of  a
project�s IEE or EIS to the proponent.  The amount that will
cover  such  cost is required to be deposited  with  a  fund
manager, who will then disburse the necessary amounts  based
on  mechanics to be agreed upon among the fund manager,  the
EMB or DENR Regional Office, and the proponent.  Such system
is  designed to ensure transparency in disbursement of funds
and  dispel  suspicions  of bribery and  exertion  of  undue
influence on the reviewers.

      The  cost  of the EIA review process, as well  as  the
procedure  for  revising  such  cost  estimate,   shall   be
determined and agreed upon between the proponent and the EMB
or  DENR  Regional Office during the scoping sessions.   For
this  purpose,  the proponent and the EMB or  DENR  Regional
Office  may  conduct a separate, closed-door  session.   The
fund manager, i.e., a third party who will handle the review
funds, may also join the meeting.

      After  agreement on the estimated cost of  the  review
process,  the  proponent must deposit such amount  with  the
fund manager who shall disburse the funds in accordance with
agreed  procedures  that should include  the  procedure  for
replenishment  of funds.  AT NO TIME SHOULD  THE  FUNDS  FOR
REVIEW  COSTS BE GIVEN DIRECTLY TO THE DENR REGIONAL OFFICE,
DENR  REGIONAL OFFICE, OR MEMBERS OF THE EIARC.   After  the
negotiations  leading  to the establishment  of  the  amount
involved  for review costs, the proponent should  deal  only
with  the fund manager, who in turn deals with the EMB, DENR
Regional Office, and members of the EIARC.

      The review funds shall be held by the fund manager  as
trustee;  the  ownership  of said amount  remains  with  the
proponent,  and  will not at any point be  acquired  by  the
government  nor  by  the fund manager.   It  is  understood,
however,  that  the  fund manager shall  be  entitled  to  a
reasonable management fee.

     The fund manager must be duly empowered to act as such,
must    have   a   reputation   for   professionalism    and
trustworthiness,  and must have adequate experience  in  the
field  of fund management.  The fund manager should  not  be
directly or indirectly related to the proponent, the members
of the  EIARC, the EMB, or the DENR Regional Office.

      Expenses attendant to the review process include,  but
are not limited to, the following items:

�    honoraria of EIA Review Committee members

     The amount of honoraria to be paid to the EIARC members
     should be commensurate to their status as professionals
     and  the  time  they will provide for the  review.   It
     should  reasonably approximate the opportunity cost  to
     said  members, i.e., how much they will lose from their
     means  of livelihood as a result of the performance  of
     their duties as review committee members.  Considering,
     however, that membership in the review committee is not
     a  money-making venture but a performance  of  a  civic
     duty, such honoraria should not be unreasonable.

�    site visit expenses of EIARC members, resource persons,
  and DENR staff

     Only members of the EIARC and key DENR staff can insist
     that  their  site visit expenses be shouldered  by  the
     proponent  through  the  trust  fund.   These  expenses
     include  round  trip  transport  cost  using  the  most
     economical and practical route, and reasonable per diem
     to  cover  food  and accommodation, depending  on  site
     location  and  the  attendant cost  of  living,  for  a
     maximum of three (3) days per trip inclusive of  travel
     time.

     The  per  diem of EIARC members is over and  above  the
     honorarium  to which they are entitled.  One  (1)  site
     visit,  although it may last the maximum of  three  (3)
     days,  is  considered as one (1) EIARC  meeting.   DENR
     personnel  are  not  entitled  to  such  honoraria   or
     allowances, since they are on official time during  the
     site  visit,  and continue to earn their salary.   DENR
     personnel may only be given cash advances or reimbursed
     for the reasonable expenses during the site visit.

�    supplies and materials

     These  expenses, which may be incurred during the  site
     visit,  or  at  some other time, include  supplies  and
     materials,  such  as containers, chemicals,  rental  of
     equipment, laboratory analysis and other related costs.

�    logistical support for EIARC meetings

     These  expenses include the cost of food  per  meeting,
     supplies  and  materials for preparation of  individual
     and  EIARC  reports, reproduction cost,  transportation
     costs of EIARC members to and from their meetings,  and
     cost of communicating with EIARC members.

�    public hearing

     In   addition  to  the  costs  of  food,   travel   and
     accommodations  for EIARC members and key  DENR  staff,
     the   proponent  should  shoulder  expenses   for   the
     preparation  of materials for the public hearing,  cost
     of venue and food of participants.


      The funds disbursed by the third party should be fully
accounted for upon completion of the review process.  Copies
of  such report shall be given to the proponent and the DENR
Regional Office or the EMB.

     It should be understood that the proponent�s payment of
additional expenses associated with the review process  does
not  guarantee the issuance of an ECC to its  project.   The
financial  support  is  mainly intended  to  facilitate  the
review and avoid undue delay to the project which will  then
increase the cost of the proponent.

      The  concept of the funds for review costs is premised
on  the need to augment limited government resources in  the
conduct of the EIA review   It is not the intention of  DENR
to  coerce  proponents to shoulder the cost of  the  review.
Even if the proponent fails or is unable to pay for the cost
of the review, the DENR can still provide regular government
service.   In  such case, however, the pace  of  the  review
process  will slow down and would proceed depending  on  the
availability   of   government   resources.    Under    such
conditions, the timeframe provided in the guidelines may not
be met by DENR.




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