Question & AnswerQ&A (BFAR ADMINISTRATIVE ORDER NO. 197, S. 2000)
A Fishpond Lease is an agreement entered into by and between the Secretary of Agriculture and a qualified fishpond applicant for the use of public land for fishpond development purposes for a period of twenty-five (25) years.
Eligible applicants include Filipino citizens at least 21 years old, corporations with at least 60% Filipino capital stock, fisherfolk cooperatives/associations, and small and medium enterprises organized or registered under Philippine laws.
An individual may lease an area not exceeding fifty (50) hectares.
Qualified fisherfolk cooperatives/associations have primary preference for the issuance of fishpond lease agreements on available public lands.
The lease period is twenty-five (25) years, renewable for another twenty-five (25) years subject to Section 4 of the Order, the terms and conditions of the lease, and other existing fishery laws and regulations.
Applicants must submit four (4) copies of a sketch plan, relevant approvals if within alienable land, articles of incorporation for juridical persons, certificate of bank deposit showing initial capital of P10,000 per hectare, affidavit regarding fund use, and DENR certification that the area is available for fishpond development.
Non-payment of rentals triggers surcharges increasing over time, and failure to pay rentals and surcharges for two consecutive years without justifiable cause results in cancellation or termination of the lease and forfeiture of the bond.
Grounds include violation of fishery laws, death of lessee (subject to heirs' rights), dissolution of juridical person, fraudulent statements, failure to submit reports, default in rental payments, unauthorized change in land use, subleasing, acquisition of foreign citizenship, or failure to provide pollution control facilities.
Yes, transfers are allowed if the lease has been held for at least three years, the area is developed and producing commercially, no violations of laws or lease terms exist, the transferee is qualified, the area is not involved in pending cases, and the transferee assumes the obligations for the unexpired lease term.
A lessee must secure an Environmental Compliance Certificate from DENR before lease issuance, undertake reforestation on applicable shorelines, provide pollution-minimizing facilities like settling ponds, and develop the fishpond to commercial-scale production within three years, with full production required within five years or the area reverts to public domain.