Presidential Decree No. 704 provided for the disposition and lease of public lands for fishpond purposes to qualified person or persons subject to various conditions. For this purpose different procedures in securing lease agreements will be discussed as well as the various requirements:
Procedure in censuring 25-year fishpond lease agreement
Procedure in converting existing 10-year fishpond lease agreements into 25-year fishpond lease agreements, and
Procedure in the transfer and issuance of 25-year lease agreement.
The following are qualified to lease public forest lands for fishpond purposes:
Citizens of the Philippines
Duly organized corporations, associations and cooperatives, 60% of the capital stock of which belongs to the citizens of the Philippines and registered with the Securities and Exchange Commission.
1 General Information Series, Vol. 1, No. 2, BFAR
A duly accomplished fishpond application (Appendix A) with the Bureau of Fisheries and Aquatic Resources or with the Regional Office where the area is located, together with the following:
Application fee of 
5.00 either in cash, check or postal money
order, payable to the Director of Fisheries and Aquatic Resources.
Two (2) copies of a correct sketch of the area, preferably extracted from the L.C. Map (of the Bureau of Forest Development) or Board of Technical Surveys Map, clearly indicating therein the approximate location and boundaries.
Proof or evidence (in bank certification form) of the initial
available capital in cash, equivalent to 1/5; of the total amount
needed to fully develop the area, based at 1,000.00 per hectare or
A statement of assets and properties certified by the Provincial/ City Treasurer/Assessor, or a financial statement from which may be derived the required initial capital for the development of the area.
Initial Environmental Examination (Appendix B).
Affidavit manifesting that the amount in bank deposit and/or the value of assets and properties or networth of the financial statement submitted will be exclusively used for the development of the area.
In case of corporation, association or cooperatives, two (2) xerox copies of Articles of Incorporation and By-Laws duly registered and approved by the Securities and Exchange Commission.
A duly filed fishpond application shall be referred to the Land Classification Committee (Bureau of Forest Development, as Chairman) by the Bureau of Fisheries and Aquatic Resources for the necessary survey and classification as to the availability of the area for fishpond development, together with the following:
A duplicate/xerox copy of the fishpond application.
One (1) duplicate/xerox copy of the sketch of the area.
Note: The application and the sketch of the area are transmitted
to the Composite Land Classification Team of the Forestry Regional
Office, who will undertake the survey, classification and zonification
of the area in accordance with the prescribed criteria of
classification. After proper identification and classification,
the Land Classification Committee, through its Secretariat, submits
the survey report with its comment and recommendation.
After the evaluation and review of the survey report, the Land Classification Committee recommends to the Ministry of Natural Resources for the certification as to the availability or non-availability of the area for fishpond development (Dept. Order No. 3).
Upon recommendation of the Chairman, L.C. Committee, the corresponding letter-certification on the availability or non-availability of the area for fishpond purposes shall be made to the Bureau of Fisheries and Aquatic Resources.
If the area is certified as available for fishpond purposes by the Ministry of Natural Resources, the Director of Fisheries and Aquatic Resources INSTRUCTS the Regional Director concerned to conduct the necessary investigation and inspection of the area, in accordance with the procedure prescribed for these purposes. Note: If the area is involved in any conflict or court case, the same shall be thoroughly investigated. All subsequent action on the application shall be deferred until the final resolution of the conflict or case.
After proper evaluation of the report, the applicant is advised in writing of the approval or disapproval of the application. If the application is recommended for approval, the applicant is required to comply with the following requirements:
Payment of the corresponding annual rental and cash bond deposit.
Submission of a project feasibility study for areas 25.0 has and above or a project feasibility questionnaire for areas less than 25.0 has.
Submission of twelve (12) copies (white print) of the approved survey plan of the area.
Submission of a certification issued by the Regional Office concerned, certifying that the area is not involved in an administrative case or judicial case.
The project feasibility study shall be reviewed and evaluated by the Fishpond Evaluation Committee as to the financial capacity of the applicant and the technical viability of the project study. If applicant is found financially capable and the project study is technically and financially viable, the Evaluation Committee recommends to the Director of Fisheries and Aquatic Resources, the approval of the Project Feasibility study.
Upon full compliance with the requirements by the applicant, 25-year fishpond lease agreement is prepared and subsequently forwarded to the Ministry of Natural Resources by the Director of Fisheries and Aquatic Resources, recommending approval.
Upon approval, the 25-year fishpond lease agreement is returned by the Ministry of Natural Resources to the Bureau of Fisheries and Aquatic Resources, who in turn advises the lessee of its approval. The original and another copy of the 25-year lease agreement are sent to the lessee.
The area of fishpond subject of lease shall not exceed the following:
| a) | For individual | - | Fifty (50)hectares |
| b) | For corporation or association | - | Five Hundred (500) hectares |
The following annual rentals, surcharges, cash bond and other fees shall be paid to the Bureau of Fisheries and Aquatic Resources or his authorized representative on the date they are due:
| Initial annual rental | - | 6.00 per hectare or fraction thereof for the first year; 7.00 per hectare or fraction thereof for the second year; and an increase of 1.60 per hectare or fraction thereof for the succeeding years, but not to exceed 10.00 per year. |
| Cash bond | - | 10.00 per hectare or fraction thereof. |
| Surcharges | - | Annual rentals not paid on the date they are due, are subject to the following surcharges: |
| Rental paid from Feb. 1 to March 31 | - 10% |
| Rental paid from April 1 to June 30 | - 15% |
| Rental paid from July 1 to Sept. 30 | - 20% |
| Rental paid from Oct. 1 to Dec. 31 | - 25% |
| Rental paid after one year | - 40% |
When equity is needed as indicated in a project feasibility study, the following shall be shown and submitted in a certification as having deposited in any bank:
| 1) | For 25.0 hectares and less | - 10% of the total project cost |
| 2) | For more than 25.0 hectares but not exceeding 50.0 has. | - 15% of the total project cost |
| 3) | For more than 50.0 has. | - 20% of the total project cost. |
The applicant is also required to submit a sworn letter of undertaking stating that such bank deposit will be exclusively used for the development of the areas.
Aside from the terms and conditions embodied in the lease agreement, a fishpond lessee is under obligation to:
Submit a semi-annual report to the Director of Fisheries and Aquatic Resources on the development, operation and production of the area.
Develop 50% of the area and be made producing in commercial scale within three (3) years; and the remaining portion of the area shall be developed and be made producing in commercial scale within five (5) years, both periods to begin from the date of the execution of the lease agreement.
Pay regularly the annual rentals.
Pay the surcharges, if any.
Assume responsibility of any and all acts of his agents, employees and laborers in the development and operation of the area.
Holders of existing 10-year fishpond lease agreements may request for its conversion into a 25-year lease agreements; and
Actual occupants of fishpond areas by virtue of expired yearly permits who are regularly paying the rentals therefore, are under obligation to secure 25-year fishpond lease agreement for the area.
A duly accomplished fishpond application shall be filed with the Bureau of Fisheries and Aquatic Resources or with the Regional Office concerned, together with the following:
Application fee of 5.00 either in cash, check or postal
money order payable to the Director of Fisheries and
Aquatic Resources.
Full payment of all rentals and other obligations due. Original or xerox copies of official receipts for such payments for three (3) consecutive years, including the present year should be submitted.
Project feasibility study (only for undeveloped portion).
Twelve (12) copies (white print) of the approved survey plan of the area.
Recent report of improvements certified by the Regional Director concerned or his authorized representative. The report shall show that 50% of the area had been developed if the permit or lease had been held for three (3) years, and the whole area should be fully developed if held for five (5) years or more.
Certification issued by the Regional Director concerned certifying that the area is not involved in any administrative case or conflict.
Certification issued by the Clerk of Court (CFI) of the Province/City, certifying that the area is not involved in any judicial case.
Upon full compliance with the regulatory requirements, the Project Feasibility Study is referred to the Fishpond Evaluation Committee for proper evaluation as to the financial capability of the applicant and the viability of the project study.
If the applicant is found financially qualified and the project study is technically viable, the Evaluation Committee recommends approval to the Office of the Director.
After the preparation of the 25-year fishpond lease agreement, the Director of Fisheries and Aquatic Resources forwards the same to the Ministry of Natural Resources for his approval.
Upon approval the 25-year fishpond lease agreement is returned by the Ministry of Natural Resources to the Bureau of Fisheries and Aquatic Resources, which in turn advises the lessee of its approval. The original and another copy of the lease agreement are sent to the lessee.
Transferee who is a holder of either one of the following documents:
Deed of Sale
Deed of Assumption of leasehold rights and interests of the fishpond area from the Development Bank of the Philippines
Deed of waiver or quitclaim.
A duly accomplished fishpond application shall be filed with the Bureau of Fisheries and Aquatic Resources or with the Regional Office concerned together with the following:
Application fee of 5.00 either in cash, check or postal
money order payable to the Director of Fisheries and
Aquatic Resources
Up-dating of all rentals due the area
Cash bond deposit in the name of the transferee
Transfer fee
Recent improvements report (certification form) duly certified by the Fisheries Regional Director or his authorized representatives
Submission of twelve (12) copies (white print) of the survey plan of the area, prepared by a Licensed Private Land Surveyor (Geodetic Engineer) and duly approved by the Director of Lands or Regional Lands Director
Submission of certification from the Fisheries Regional Director and from the Clerk of Court, CFI, as to whether or not the area is involved in any administrative or judicial case
Project Study or Feasibility Study if the area is not developed.
Upon full compliance with the regulatory requirements, the project feasibility study is referred to the Fishpond Evaluation Committee for proper evaluation as to the financial capability of the applicant and the viability of the project study.
If the applicant is found financially qualified and the project study is technically viable, the Evaluation Committee recommends approval to the Office of the Director.
After the preparation of the 25-year fishpond lease agreement, the Director of Fisheries and Aquatic Resources forwards the same to the Ministry of Natural Resources, recommending approval.
Upon approval the 25-year fishpond lease agreement is returned to the Ministry of Natural Resources to the Bureau of Fisheries and Aquatic Resources which in turn advises the lessee of its approval. The original and another copy of the lease agreement are sent to the lessee.
