2. FAO 197-1: s. 2000
SUBJECT: Rules and Regulations governing
the lease of public lands for fishpond
development.
Pursuant to the provisions of Sections 3,
6, 12, 13, 45, 46, 50, 55, 57, 65, and 107 of
Republic Act 8550, otherwise known as the
Philippine Fisheries Code of 1998, and
Section 4 of Republic Act No. 7881, the
following rules and regulations governing
the lease of public lands for fishpond
development purposes are hereby
promulgated.
3. FAO 197-1: s. 2012
SUBJECT: Revised rules and regulations
governing the lease of public lands for
fishpond and mangrove-friendly aquaculture
Pursuant to Section 16, Article II of the 1987
Constitution, Sections 3, 6, 12, 13, 45, 46, 50,
55, 57, 65, 103 (b) and 107 of Republic Act 8550,
Republic Act 8289 as amended by Republic Act
9501 and Executive Order 26 series of 2011, the
following rules and regulations governing the
lease of public lands for fishpond and mangrove-
friendly aquaculture are hereby promulgated for
the guidance of all concerned:
4. New terminologies (Sec. 1)
• Abandoned fishpond
– No occupation, possession/operations
• No report to BFAR after 6 mos. & 10 days
after lease issuance
• Sub-leasing
• Absence of a clear indication of
aquaculture operations
• Aquasilviculture Stewarship Contract (ASC)
– Contract issued by DA Sec., to fisherfolk
groups, MSMEs
to use released fishpond areas for mangrove
aqua-friendly aquaculture
7. General conditions of permits
(Sec. 7)
• Previously in FAO 60, omitted in FAO 197
• Must be communicated to all applicants
• Sec. 7 FAO 197-1
– Power of Congress
– Permittee shall comply with the laws, rules &
regl.
– Legal status of land
– No title acquired
– Adjudication of area & damage
– Statements in application as part of the
conditions of the permit contract or lease
8. General conditions of permits
(Sec. 7)
• Sec. 7 FAO 197-1
– Surface right
– Exclusive privilege
– Free access to area
– Free navigation
– Rentals
– Disposition of improvements (Draft guidelines
for comments)
• No right to claim for reimbursements over
introduced improvements
• Upon expiration or cancellation, all
improvements becomes govt., property
9. Form and contents of application (Sec. 8)
• Old form to be used for FLA
• New ASC application form (for comments)
Place of filing (Sec. 9 & 11)
• Regional or Provincial
• Filing at Provincial or Regional Office
10. Application fee (Sec. 10)
• Php. 2,000.00 FLA or ASC
• Complete set of initial requirements
– Same with FAO 197, s. 2000
– Outright rejection and not considered filed
(incomplete requirements)
Recording of applications (Sec. 12)
• All accepted applications for ASC or FLA shall be
given serial numbers and shall be duly recorded
in the registry book provided for the purpose
11. Priority right of application (Sec. 13)
• “First come, first serve” basis
– Qualified applicants
– Complete set of initial requirements (Sec. 11)
• Preference to bona fide Fisherfolk groups & MSMEs
– Over Cancelled/terminated FLAs/ASCs
– Over 50 yr old cancelled FLAs (Sec. 4, FAO 197 s.
2000)
• Raffle scheme (Regional Office)
– Two or more applicants, same area, same date
• Provided: Qualified + complete set of initial
requirements
12. Initial set of requirements
(Sec. 14)
• Basically same with FAO 197
– Four copies sketch plan derived from
LC Map of DENR
– Articles of incorporation from SEC
(corporation);
– Certificate of bank deposit: Php.
5,000/ha or fraction
• Before Php 10, 000
– Affidavit: Initial capital investment
for fishpond devt.
13. Initial set of requirements
(Sec. 14)
• New items
– Notarized affidavit: adherence to Good
Aquaculture Practices (see appendix FAO 197-1, s.
2012)
– For Fisherfolk/ MSMEs
• See Sec. 5 A (a) and A (b)
– 50 % of members/workers registered voters
in the locality;
– MFARMC endorsement;
– One year of existence (fisher groups) OR
audited FS (MSMEs); and
– Financial management sytems in place
– Willing to undergo training on mangrove-
friendly aqua.
14. Filing applications for GP (Sec. 15)
• Project profile
– General & specific objectives of the project;
– Methodology of project implementation;
– Sketch plan of the area
15. Final set of requirements (Sec. 16)
• Basically the same with FAO 197, s. 2000
– 12 copies Approved survey plan;
– Notarized FLA/ASC contract;
– Certifications from RTC & BFAR;
– Payment of initial rent + cash bond;
– DENR ECC or CNC; and
– Updated SSS payments (if applicable)
16. Requirements for Renewal FLA/ASC
(Sec. 17)
• Not specified under FAO 197, s. 2000
– Application fee Php. 2, 000;
– Updated rental + cash bond;
– Court certification;
– Photocopy of approved survey plan;
– Inspection w/ recommendation by the RD
• Adherence to GAP;
• No unpaid rentals
• No admin. Case
– New survey plan (if any changes)
18. Requirements on transfer (Sec. 19)
• Covers FLA and ASC
• Same with FAO 197, s. 2000.. PLUS the ff:
– Application fee Php. 2, 000 (increase from Php. 1,000)
– Cash bond Php. 500 / ha or fraction (increase from Php. 100)
– Affidavit: Good Aquaculture Practices (appendix FAO 197-1)
– Prior written approval from the DA Sec
• Letter (F) Sec. 13 FAO 197, s. 2000
– Violated in countless case...root of many court cases
• Draft Guidelines now ready for comments
• Issuance of “Prior Approval” to be delegated to
BFAR (National) Director
19. Grounds for rejection of application (Sec. 20)
• Same with FAO 197, s. 2000.. PLUS the ff:
• Incomplete initial requirements
• Often violated in the past
• Failure to submit requirements under Sec. 16 or
17 (new/renewal) or Sec 18 & 19 (transfer) within
6 months from receipt of Notice of Compliance.
Provided nature of non-compliance is due to
inaction or delay of concerned govt. agencies
20. Rentals (Sec. 21)
• Annual rent for FLA
• 2012- Php. 1, 000/ha or fraction
• 2013- Php. 1, 000/ ha or fraction
• 2014- Php. 1, 100/ha or fraction
• 2015- Php. 1, 200/ha or fraction
• 2016- Php. 1,300/ha or fraction
• 2017- Php. 1,400/ha or fraction
• 2018 – onward -1,500/ha or fraction
• Annual rent for ASC
• Php. 500/ha or fraction
21. Surcharges & Discount (Sec. 23)
• Last payment w/o surcharge:
• Last working day of February of each year
• Surcharge rate
• 10 % Discount: if due rent for the following year is
paid on or before Dec. 31 of the current year
23. Terms & Conditions (Sec. 26)
• For FLA, full development of the entire area,
5 yrs after issuance
• Required annual production levels (FLA)
– 2013 = 1,000 kg/ha or its equivalent;
– 100 kg increase/year until it reaches 1, 500 kg by
year 2018.
• Evaluation for under-utilization to be
undertaken 6 yrs (2018) after issuance of FLA
• For ASC, full utilization of the area 5 yrs after
issuance, producing at 1, 000 kg/ha/yr
26. Legal basis of ASC
• RA 8550
– SEC. 45. Disposition of Public Lands for Fishery Purposes.
• FLA may be issued for public lands that may be declared
available for fishpond development primarily to qualified
fisherfolk cooperatives/associations: Provided, however,
That upon the expiration of existing FLAs the current lessees
shall be given priority and be entitled to an extension of
twenty-five (25) years in the utilization of their respective
leased areas. There after, such FLAs shall be granted to any
Filipino citizen with preference, primarily to qualified
fisherfolk cooperatives/associations as well as small and
medium enterprises as defined under Republic Act No. 8289.
• That the Department shall declare as reservation, portions
of available public lands certified as suitable for fishpond
purposes for fish sanctuary, conservation, and ecological
purposes.
27. • RA 8550 (Implementing Rules & Regulations)
– Rule 49.2 Identification of Abandoned,
Undeveloped, Underutilized Fishponds. –
• The Department, through BFAR, shall
within one (1) year from the effectivity
of this IRR, review and update fishpond
surveys and identify abandoned,
undeveloped or underutilized fishpond
which, after due process, can be given
to qualified persons OR reverted to
forest lands.
28. • RA 8550 (Implementing Rules & Regulations)
SEC. 49. Reversion of All Abandoned,
Undeveloped
or Underutilized Fishponds.
• Rule 49.1 Joint Guidelines.
– The Department, through BFAR and the
DENR, shall be guided in the
implementation of this Section by the
Joint DA- DENR General Memorandum
Order No. 3, Series of 1991, which shall
be reviewed and revised accordingly
within six (6) months from the
effectivity of this
Legal basis of ASC
Note: The Sept 17, 2011 talks created a TWG to review the DA-DENR G.M.O No. 3 , subsequently managed to
draft a Joint A.O. A Write-shop consultation conducted on Oct 10-11, 2011, produced a draft but was
rejected by DENR/NGO representatives on May 5, 2012 and alternatively proposed separate FAO
(cancellation) and DAO (reversion). BFAR,was not present in the May 5, 2012 meeting
29. • Persons who may apply for ASC
– Fisherfolk coop/associations (reg. under PHL
laws)
• At least 50% of members are registered
voters of the municipality where the area
is being applied for is located;
• Endorsed by the M-FARMC;
• Financial capability and existing financial
mngt. System;
• Existing for at least 1 (one) year;
• Willing to undergo training on mangrove-
friendly aqua OR
already engage in it.
ASC Regulation
30. • Persons who may apply for ASC
– Fishery-based MSMEs (reg. under PHL laws)
• The principal or proprietor and at least 50 % of the
paid workers are registered voters of the province;
• Duly audited and notarized financial statement; and
• Endorsed by the M-FARMC
– IN THE ABSENCE OF FISHERY COOP/MSMEs
• Filipino individual, at least 21 yrs old;
• Registered voter in the area where the area being
applied for is located
• Endorsed by the M-FARMC
• Willing to undergo training on mang.-friendly aqua
ASC Regulation
31. • Area that may be granted
– Not exceeding 50 has.,
– DA Sec., discretion to increase the
area
• Public interest
• Financial capacity
• Importance of the project/industry
• Period of Contract
– 10 years; renewable for another 10 yrs
ASC Regulation
32. • Suitable areas for ASC
– New applications on un-touched released areas
• 110 k has. released under DENR-BFD AOs
but only
59 K has. issued w/ FLAs
– Cancelled or terminated FLAs
• Depending on the actual physical status of
the area
– Segregation of fully developed portion
• Final recommendation to the DA Secretary
for the area to be
made available for ASC /FLA will be done
by the CO
ASC Regulation
