The Bugallon Reforestation Project is an initiative under the Forestry Sector Project implemented by the Department of Environment and Natural Resources (DENR). Under this project, 430 hectares of land was awarded through a Forest Land Management Agreement (FLMA) for the Bugallon Cluster Multi-Purpose Cooperative, Inc. (BCMPCI). The FLMA is a 25-year renewable lease for the BCMPCI to reforest, manage, develop, and utilize the 430 hectares of predominantly cogonal upland area.

In January 1994, the FMB-DENR sought the help of the Institute for Development Alternatives (IDA), a non-government organization based at Metro Dagupan Colleges of Mangaldan, Pangasinan, to organize the communities living adjacent to the project area.  IDA used a community mobilization development approach called Barangay Cluster Development System (BCDS) in tapping three or more contiguous barangays to work together on a continuing basis through people participation.

The community benefited from wages paid to them for labor services. A percentage of the wages is retained by the cooperative for capital build-up to support the BCMPCI livelihood projects.  Further, the Cooperative was also able to increase capital build-up through income derived from other crops.  Since then, BCMPCI has continued to increase its capital build-up, even after the phasing out of IDA.  This has improved the socio-economic condition of the community. They already its own office and was able to purchase its communication equipment and establish the infrastructure needed as forest guards, such as the look-out tower and bunkhouses.

Through this partnership, the DENR was able to accomplish its objective to develop the area, and at the same time, decrease the occurrence of forest fires, and minimize (if not eliminate) illegal cutting and poaching in the area. The same strategy of making the community its partners was being applied by the DENR to their watershed rehabilitation and reforestation program in Santa Rita, Zambales.

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