Legal basis and governing authority
- The Order is promulgated pursuant to Section 6, paragraph d of Republic Act No. 8172, commonly known as the “ASIN Law.”
- The Secretary of the DENR has the authority to declare areas available for salt production purposes and to publish those declarations.
Policy and objectives
- The Order is issued to ensure the sustainable production of salt.
- The Order aims to provide criteria and guidelines for the identification, classification, and awarding of areas suitable for salt production.
- The Order aims to encourage salt production and support the food security program of the government.
- The Order aims to generate and develop job opportunities to help low income earners in the countryside.
- The Order establishes mechanisms for monitoring and adoption of anti-pollution control measures by salt producers/manufacturers.
- The Order requires a system to register and enlist all salt producers or public land engaging in salt production in the country.
Key definitions for salt production
- “Iodized Salt” means salt containing a small amount of iodine as the most cost-effective way of preventing iodine deficiency that can cause goiter, mental retardation, and congenital physical defects.
- “Manufacturer/Producer” means one who produces, imports, trades in, or distributes salt.
- “Salt Iodization” means the addition of iodine to salt intended for human or animal consumption in accordance with specifications as to form, fortificant, method, manner and composition that may be prescribed by the Bureau of Food and Drug Administration.
- “Saltfarm” refers to any foreshore areas devoted/utilized for salt production.
- “Salt Production Sharing Agreement (SPSA)” is a contract entered into between DENR and a person/corporation/association/partnership for the use of public lands for salt production.
- “Table salt” is a white crystalline substance consisting of sodium chloride occurring abundantly in nature both in solid and liquid form.
Areas covered and areas excluded
- Areas available for salt production include areas currently devoted to salt production and areas with natural salt deposits.
- Areas available include foreshore areas free from mangrove vegetation, corals, and seagrass population.
- The following are excluded from being available for salt production purposes:
- Foreshore areas delineated for bathing purposes.
- Areas designated as municipal fishery reserves and its equivalent, or areas designated as core and buffer zones of the Protected Area System and similar reservations.
- Areas designed as type SD of water classification pursuant to DAO 34’s 1990.
- Areas covered by existing and valid tenurial instruments.
Identifying and declaring salt production areas
- CENROs must identify areas suitable for salt production within the public domain, including areas with natural/rock salt deposits and existing salt production areas.
- Identification reports must cover:
- actual area used;
- total leased area;
- optimum production volume/year;
- actual production volume;
- direct beneficiaries;
- tenurial status; and
- awarding and expiry dates.
- Reports must be submitted to the Task Force Mangrove/Asin for compilation and publication.
- For the first three (3) years, potential salt production areas must be validated by the Task Force Mangrove/Asin.
- The Task Force must prioritize areas covering at least 100 hectares and must prepare a validation report that includes:
- potential environmental risk;
- municipal development plan for the area and its immediate environment;
- assessment of current use of the area and the impact of possible displacement; and
- a public dialogue with affected communities regarding classification of the area.
- For potential areas covering less than 10 has., regional offices must dispatch a validation team composed of representatives from Regional CEP Coordinator, EMPAS, ERDS, FMS, and ORED to conduct the validation activities, and the validation report must be submitted to the Task Force.
- The Task Force must ensure that all reports concerning potential salt production areas are completed and endorsed for declaration by the Secretary.
- The Secretary must declare areas available for salt production purposes, and these declarations must be published on newspaper of general circulation.
Criteria for suitability and prioritization
- A proposed area must be an extensive tidal flat with good drainage, capable of draining off water during normal low tide.
- The proposed area must be situated at least 100 meters from any river mouth, and must be free from floods and storm surge.
- The area must have generally flat or gently sloping peripheral terrain at least 1 kilometer from its boundaries.
- The area should preferably be situated within climatic type I of Corona’s classification, and exposed to the north-east and easterly winds with a below normal precipitation level.
- The salinity of water for the salt production period must be at least parts per thousand (ppt.) (with the instruction that the higher the better).
- Water quality must be free from contamination from sewage and industrial and agricultural run-off/pollutants.
- Tidal fluctuations must preferably vary within a 1 meter range.
- Soil characteristics must range from silty clay to clay loam, with pH value slightly acidic or within pH 6–7.
- The proposed salt production area must be situated at most 4 kms. but not less than 2 kms. from settlements for manpower requirements.
- The area must have a source of freshwater without competing with the local population, must be accessible all year, and must have access to ready source of materials.
SPSA application, processing, and limits
- Qualified applicants include any Filipino citizen of legal age.
- Qualified applicants include any corporation, association, or cooperative duly constituted under the laws of the Philippines with 60% of the capital owned by Filipino citizens.
- Preference in applications is given to applicants who are residents of the area, community based organizations, and those corporations that practice environmental conservation prior to application.
- Application documents must include:
- letter of application;
- receipt of application fee;
- development plan;
- feasibility studies; and
- endorsement letter from affected barangays and municipalities.
- For corporations, associations, and cooperatives, additional requirements include:
- certificate of registration;
- letters of incorporation and by laws;
- directory of officers;
- track record; and
- financial records for the past three (3) years.
- The applicant must secure and submit all necessary documents to the CENRO concerned.
- The CENRO must evaluate document completeness and, if the site is within a declared salt production area, do the evaluation within 15 working days from submission.
- Application for SPSA within a declared SPA area must be recommended by the team and endorsed to the proper approving office based on size:
- PENRO for areas not more than 100 has.;
- ORED for areas not more than 1,000 has.; and
- OSEC for areas above 1,000 hectares for preparation and approval of SPSA.
- Development work must commence only after the applicant has a valid SPSA and after complying with the requirements of DAO 96-37 and other pertinent rules and regulations.
- SPSA site size limits for applications are:
- Individual: not more than 5 has.
- Association/Cooperative: not more than 100 has., or not exceeding the area of the political jurisdiction of the barangay where the association/cooperative is based
- Corporation, Foundation, and other similar groups: not more than 500 has. and the site applied for must be contiguous.
- Priority for processing SPSA applications must follow a first come first serve policy and must prioritize financially stable corporations with previous record on salt production.
Reporting, monitoring, and environmental controls
- The SPSA holder must submit a semi-annual report to the CENRO concerned during the development/construction phase of the salt production area and annually thereafter.
- Monitoring must be conducted by the Regional Office on a semi-annual basis during the development plan phase and annually thereafter.
- All reports must be forwarded to the Task Force Mangrove/Asin on a quarterly basis.
- Monitoring teams must conduct inspection and water quality testing every year.
- Mangroves and other resources must be inventoried and mapped before an SPSA is awarded, conducted with the SPSA applicant to establish baseline resource information for future monitoring.
- A Rapid Resources System appraisal must be conducted during the 3rd year, 5th year, and seventh year, and every 5th year thereafter to determine impacts of site development and provide basis for adjustment of ECC conditionalities whenever necessary.
- Compliance with the Environmental Enhancement Plan must be monitored.
- SPSA holders are encouraged to participate in DENR’s Coastal Environment Conservation and Protection efforts.
- Existing policies related to EIA, ECC, and environmental quality monitoring must be adhered to.
Development timelines, reversion, and expansion
- An SPSA holder must complete development of the whole site within 5 years.
- At least 80% of the site must be fully developed by the third year.
- If the SPSA holder violates development obligations:
- areas underdeveloped must be reverted for mangrove forest purposes.
- The agreed production volume must be attained on the seventh year; otherwise, the area must be made available for other applicants.
- SPSA holders may apply for production area expansion but must not exceed the limits prescribed in Section 7 (4).
- Priority for expansion is given to the existing and adjacent SPSA holder.
Terms, privileges, government share, and fees
- The SPSA term is twenty five (25) years, renewable for another twenty five (25) years.
- An SPSA is subject to suspension or cancellation if the SPSA holder violates the terms and conditions under the agreement.
- The government share must be computed using:
- GS = GR − (CP + MPR)
- where GS is government share, GR is gross revenue, CP is cost of production, and MPR is margin for profit and risk equal to 30% of the gross revenue.
- The application fee is P500.00 per application.
- SPSA holders receive incentives including:
- the right to occupy, possess, utilize, and develop SPA areas and claim ownership on introduced improvements;
- the right to allocate to members and enforce rights to use sustainably SPA areas;
- the right to be properly informed and consulted on all government projects implemented in the area;
- preferential access by DENR to available assistance for development and for compliance with the ECC;
- the right to receive all income and proceeds from salt production in excess of the amount set aside as government share.
Responsibilities, special use of salt ponds, and continuity
- The SPSA holder must participate in boundary delineation of the SPA.
- For an existing corporation, organization of salt producer within public land, the SPSA holder must submit:
- SEP of affected communities;
- RRA; and
- a map covering the SPA area and adjacent community and natural resources and land use.
- The SPSA holder must prepare and implement:
- a development plan;
- feasibility study;
- environmental protection and enhancement plan for the SPA.
- The SPSA holder must comply with the ECC conditionality.
- The SPSA holder must construct/develop structures or systems required for environment/environment monitoring purposes.
- The SPSA holder must assist the government in protection and conservation of adjacent natural resources.
- The SPSA holder must prioritize employment of residents.
- The SPSA holder must assist the government in public education campaign for nearby communities.
- The SPSA holder must submit an Annual Comprehensive Report and other reports required by DENR.
- Salt ponds may be used as temporary fishponds during the wet season, provided that necessary adjustments for government share are complied with.
Repeal and separability
- All rules and regulations inconsistent with DENR Administrative Order No. 98-67, S. 1998 are repealed.