QuestionsQuestions (BFAR FISHERIES ADMINISTRATIVE ORDER NO. 197-1)
An ASC is for mangrove-friendly aquaculture granted by the Secretary to qualified fisherfolk cooperatives/associations and MSMEs over areas released for fishpond development, while an FLA is for fishpond operations granted to qualified applicants over areas already developed into fishponds. Their nature, purpose (mangrove-friendly vs developed fishpond operations), and typical holders differ.
It is public land released for fishpond development with no occupation, possession, or operational activity by the lessee/representative, evidenced by, among others: failure to submit an initial report within ten (10) days after six months from approval; subleasing; or absence of clear indication of fish production operations in the area.
It is an area not enclosed by dikes; or enclosed by dikes without functional water control structures; or enclosed with functional water control structures but water levels needed for commercial-scale production cannot be maintained (e.g., not maintainable by tides or pumping); or only a simple perimeter dike with unclear subdivision, regardless of mangrove presence.
ASC: not exceeding 50 hectares for fisherfolk cooperatives/associations or MSMEs. FLA: not exceeding 25 hectares for an individual or husband and wife; and not exceeding 50 hectares for a corporation duly registered with the SEC. The Secretary may increase area in the public interest considering capacity/qualification and project importance.
Fisherfolk cooperatives/associations: (1) at least 50% of members are registered voters of the municipality where the fishpond is located; (2) endorsement from the MFARMC; (3) financial capability and existing financial management system; (4) at least one (1) year of existence; (5) technical staff executed an affidavit to undergo training on and to engage in mangrove-friendly aquaculture.
They must be duly organized/registered; (1) principal/proprietor and at least 50% of paid workers are registered voters of the province; (2) present duly audited and notarized financial statements; (3) endorsed by the MFARMC; and (4) technical staff executed an affidavit to undergo training on and to engage in mangrove-friendly aquaculture.
The citizen must be at least 21; a registered voter of the province where the fishpond area is located; endorsed by the MFARMC; and executed an affidavit expressing willingness to undergo training on and engage in mangrove-friendly aquaculture.
ASC: 10 years, renewable for another 10 years. FLA: 25 years, renewable for another 25 years but not to exceed 50 years total; after the 50-year period, there is no right of renewal by the lessee/transferee or their legal heirs. Transfers may only be allowed within the 50-year period.
It is considered filed on the date and time the original application and complete set of initial requirements are actually received in the proper Regional/Provincial Office. Applications with incomplete initial requirements are rejected outright and are not considered filed.
It is required as a final requirement: the applicant must submit an ECC or a DENR Certificate of Non-Coverage, as applicable, to show compliance regarding environmental impacts of new fishpond development.
Fishpond areas: 2013 P1,000/ha; 2014 P1,100/ha; 2015 P1,200/ha; 2016 P1,300/ha; 2017 P1,400/ha; 2018 and every year thereafter P1,500/ha (subject to possible increase based on resource rent studies every five years). Mangroves/silviculture: P500/ha.
Surcharge: 5% if paid March 1–31; 10% if April 1–June 30; 15% if July 1–Dec 31; 20% if paid after one year. Incentive: a 10% discount if the holder fully pays the following year’s annual rental within December of the current year.
Cash bond: P500 per hectare or fraction thereof before issuance of contract/lease. It may be credited for payment of annual rentals only after three (3) years from approval and after the area is fully developed and producing in commercial scale (FLA) or utilized for mangrove-friendly aquaculture with satisfactory compliance (ASC). If cancelled for cause, the bond may be forfeited.
Examples include: violation of fishery/environment and other applicable laws and rules; death of lessee subject to heirs’ preemptive rights; dissolution of juridical person; fraudulent/false/misleading statements; failure to submit yearly report; failure to pay rentals and surcharges for two consecutive years; sublease; transfer/assignment without prior approval; non-adherence to Good Aquaculture Practices; failure to provide pollution-minimizing facilities; other term breaches; abandonment/non-development/underutilization.
ASC: within 180 days from issuance, the contracting party must have started utilizing the area for mangrove-friendly aquaculture. FLA: within the same 180 days, the lessee must have introduced improvements. If not complied with, the ASC/FLA shall be cancelled.
FLA requires full development and commercial-scale production within five years from approval; commercial-scale targets are specified by year (starting 1,000 kg/ha/year in 2013 and rising annually). ASC likewise requires full utilization and capability to produce at 1,000 kg/ha/year based on actual fish production area excluding mangrove areas within five years. Underutilization arises if not producing in commercial scale within required periods (three years from ASC/FLA approval for portions not producing, or five years for whole/not fully developed) as reflected in annual reports or inspection findings.
Subleasing is prohibited. The Order states ASC/FLA holders are prohibited from subleasing all or any portion of the area through arrangements that partake of a sub-lease, and violation is a ground for cancellation. Also, assignment/transfer requires prior approval of the Secretary and must follow the conditions and requirements stated in the Order.