Question & AnswerQ&A (DENR ADMINISTRATIVE ORDER NO. 98-67, S. 1998)
The primary policy is to ensure the sustainable production of salt pursuant to Republic Act No. 8172 (ASIN Law) by providing guidelines for identification, classification, and awarding of areas suitable for salt production.
Iodized Salt is defined as salt containing a small amount of iodine, which is a cost-effective way to prevent iodine deficiency that can cause goiter, mental retardation, and congenital physical defects.
The criteria include topography (extensive tidal flat, good drainage, flat terrain), climatic conditions (preferably climate type I, exposure to northeast and easterly winds, below normal precipitation), water quality (salinity of at least 70 ppt, free from contamination, tidal fluctuations within 1 meter), soil type (silty clay to clay loam with pH 6-7), and other considerations like proximity to settlements, freshwater source, accessibility, and material source.
Qualified applicants include Filipino citizens of legal age, and corporations, associations, or cooperatives with at least 60% Filipino ownership. Preference is given to residents of the area, community-based organizations, and environmentally conscientious corporations.
Applicants must submit a letter of application, receipt of application fee, development plan, feasibility studies, and endorsement letters from affected barangays and municipalities. Corporations must also submit certificates of registration, letters of incorporation, directory of officers, track record, and financial records of the last three years.
An SPSA shall be in force for twenty-five (25) years and renewable for another twenty-five (25) years, subject to suspension or cancellation upon violation of terms.
Individual applicants can apply for up to five (5) hectares; associations/cooperatives up to 100 hectares or the area of the barangay jurisdiction; corporations and similar entities up to 500 hectares, with the site required to be contiguous.
If the holder does not fully develop at least 80% of the area by the third year or meet agreed production volumes by the seventh year, the undeveloped or non-compliant parts shall revert to mangrove forest purposes or be made available to other applicants.
Government share (GS) is computed as Gross Revenue (GR) minus Cost of Production (CP) and Margin for Profit and Risk (MPR), with MPR being 30% of the gross revenue: GS = GR - (CP + MPR).
SPSA holders must prepare and implement environmental protection and enhancement plans, comply with the Environmental Compliance Certificate, assist in adjacent natural resource protection, participate in environmental monitoring, and submit regular reports to the DENR.