NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
aa
H.B,No, 3/08

Introduced by Representative Ralph G. Recto

AN ACT
ESTABLISHING THE NATIONAL MARICULTURE PROGRAM, PROVIDING
FUNDS THEREFOR, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

This bill aims to strengthen the Philippine fisheries sector through the
formulation of a National Mariculture Program adopting the ecosystem-based
approach. It seeks to expand and strengthen Mariculture Parks and Zones and
proposes the creation of the Maritime Zone Advisory Council consisting of
representatives from the Bureau of Fisheries and Aquatic Resources-Department of
Agriculture (BFAR-DA), the Local Government Unit (LGU) Agriculturist, the LGU
Planning and Development Coordinator, fisherfolk cooperatives/organizations and
business with direct involvement in mariculture.

The bill sets a P500-Million initial fund for implementation of the program and
mandates the Land Bank of the Philippines to extend financial assistance to
fisherfolk at easy terms, low interest rates and low amortizations. The BFAR and the
Southeast Asian Fisheries Development Center shall extend technical assistance and
recommend culture structures and procedures, among others, to ensure effective
implementation. This bill provides for the establishment of physical, and socio-
economic support infrastructures to ensure the viability of investments and the
equitable share of fisherfolk and LGUs from sustainable mariculture.

The Philippines is endowed with vast marine and coastal resources. Of the 2.2
million square kilometers of territorial waters, including the Exclusive Economic
Zone, around 266,000 sq. kms. are under the jurisdiction of around 900 coastal

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cities and towns along the whole length of the country’s 36,289 km. coastline. Our
archipelago lies at the Earth’s center of marine biodiversity, the Coral Triangle, which
hosts thousands of endemic and migratory species. We also lie in the Western
Central Pacific (Food and Agriculture Office Statistical Area 71), deemed to be one of
the highly diverse marine areas and covered by the Convention on the Conservation
and Management of Highly Migratory Fish Stocks in the Western and Central Pacific
Ocean.!

Fish is a major source of protein, constituting 11.7 percent of the Filipino diet,
at 34.3 kilograms annual per capita.? In fine weather, coastal folk can depend on the
sea for food and livelihood. The map of coastal areas largely reflects the most
densely-populated areas, inhabited by poor Filipinos migrating to where they can get
libreng ulam. However, coastal folk cut mangrove trees for fuel, charcoal production
and house construction materials.

This situation of use and misuse in the light of abundant marine resources is
best illustrated in the Verde Island Passage (VIP). An estimated seven (7) million
people live in cities and towns along the VIP, which lies in the apex of the Coral
Triangle, while 830,000 live right along the coastlines. Degradation of the VIP's
coastlines has come from the destruction of mangrove forests, logging, various
coastal developments and aquaculture.

Nationwide, our mangrove forests have whittled down to 248,000 hectares
from the 450,000 hectares surveyed a hundred years ago. In addition, mangrove
destruction has led to the loss of habitat of many species due to monoculture, or
single-species aquaculture, such as prawn farming.

Decades of practicing unsustainable system of aquaculture has led to
diminishing variety and volume of harvests with increasing numbers of abandoned,
unutilized and underutilized aquaculture areas that had become less productive due
to environmental degradation. In addition, Mariculture Parks and Zones are
vulnerable to the pollution and contamination coming from farms, construction and

other activities in inland waterways.

+ Food and Agriculture Organization ~ Major Fishing Areas in the Pacific Ocean
http://www. fao.org/docrep/w1310e/w1310E04.htm
2 Bureau of Fisheries and Aquatic Resources ~ Philippine Fisheries Profile 2020: Food Consumption

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The latest BFAR data show total mariculture production in 2020 of 150,507
metric tons (mt) with the biggest production at 102,294.57 mt coming from Region
I. However, reported figures are often not reliable because of the absence of a
standard system for reporting yields and landings as well as collection and
transmission of fees and earnings due the LGUs.

Despite the economic services derived from marine resources, the sector has
one of the most insecure labor conditions. The 2021 Labor Force Survey has
reported that 1.3 million employed in Fishing and Aquaculture received an Average
Daily Basic Pay of P379.55, which is P155.14 less or 29% smaller than the all-
industry daily basic pay of P534.69, as of 2021.? If a fisherman would work for 30
days in a month, he would earn P11,386.50, which is P695.50 lower than the 2021
first-half poverty threshold of P12,082', It is a basket case of food producers under
the shadow of hunger. Municipal fisherfolk are one of the lowest-paid and most
insecure workers in the country.

The proposed bill will address the issues of food safety and security; low
wages and insecure livelihood; declining yields due to many factors such as habitat
destruction or imprecise reporting systems; and degradation of coastal ecosystems
from anthropomorphic activities that affect the mariculture industry. The Mariculture
Zone Advisory Council to be created is tasked with the over-all management and
supervision of Mariculture Parks and Zones as well as revenue collection and
transmission of the same to local governments.

Food security and employment for millions of Filipinos are immediate direct
benefits to be gained with the implementation of a sustainable ecosystem-based
National Mariculture Program proposed herein.

In the light of the foregoing, immediate passage of the bill is earnestly

sought.

2 As of April 2021 based on Preliminary Data from the 2021 Labor Fafce Survey
4 Philippine Statistics Authority 2021 First Semester Official Poverty Statistics

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NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

H. B. No. 3708

Introduced by Representative Ralph G. Recto

AN ACT
ESTABLISHING THE NATIONAL MARICULTURE PROGRAM, PROVIDING
FUNDS THEREFOR, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

Section 1. Title. - This Act shall be known as “The National Mariculture
Program”,

Sec. 2. Declaration of Policy. - The State shall ensure food security to
everyone, utilizing and developing the country's natural wealth, and shall protect the
aquatic resources as valuable food reserve. Toward this end, the State shall ensure
the utmost protection of the country’s marine environment while optimizing the
potential contribution to food security.

Likewise, the State shall uphold the rights and interests of the Filipino
fisherfolk and they shall be given preferential use of the marine and fishing
resources in the country.

To this end, there shall be a comprehensive program on marine technology
and research, financial and marketing assistance, and other services for the benefit
of the fisherfolk and the local communities.

Sec. 3. National Mariculture Program. — The National Government, through
the Bureau of Fisheries and Aquatic Resources (BFAR), shall undertake a National
Mariculture Program (NMP), guided by the following objectives:

1. To promote mariculture as a major source of livelihood for fisherfolk;


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2. To identify and establish mariculture parks in suitable areas adopting the
ecosystem-based approach;

3. To ensure food security and enhance socio-economic growth through a
sustainable mariculture industry;

4. To conserve, protect and manage the aquatic environment conducive to
fisheries, species management and mariculture investment;

5. To develop procedures in order to minimize the adverse effects from
mariculture in view of the multiple uses of marine and coastal areas where
mariculture parks may be established;

6. To develop the technical skills of fisherfolk throughout the production,
harvesting, processing, storage and transport stages in the value chain;

7. To provide appropriate infrastructure and equipment for post-harvest
technology;

8. To provide stakeholders easy access to financial institutions; and

9. To enable stakeholders to implement activities for climate change
resiliency and disaster risk reduction and management capability.

Sec. 4. Definition of Terms. ~ As used in this Code, the following terms shall

mean as follows:

1. Mariculture shall refer to an integrated branch of aquaculture designed to
produce fish through sea cages, long fines and other culture structures in
marine and coastal areas to grow high value species, such as but not
limited to bangus, siganid, seaweeds, oysters, mussels, red snappers,
groupers and other related species;

2. Mariculture Park or Zone shall refer to duly designated fishery areas where
mariculture is undertaken; and

3. Southeast Asian Fisheries Development Center (SEAFDEC) shall refer to an
intergovernmental organization established for the purpose of sustaining
fishery development in Southeast Asia.

Sec. 5. Mariculture Development Parks and Zones. ~ Subject to the limitations

set forth under Sections 20 and 22 of Republic Act No. 8550, otherwise known as
the Philippine Fisheries Code of 1988, and Section 149 of Republic Act No, 7160,

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otherwise known as the Local Government Code, the officials of the local
government unit (LGU) concerned shall supervise the establishment of mariculture
parks and zones in duly designated areas located within the municipal waters. In
case of waters located outside of municipal waters, the Department of Agriculture
(DA) shall designate and supervise the respective mariculture area.

The technical, social, economic viability and sustainability, as well as
environmental protection, shall be taken into consideration in selecting an area for a
mariculture park or zone,

For this purpose, the province, city or municipality shall enter into a Lease
Agreement with the registered fisherfolk cooperative as well as private investors,
where the terms and conditions, as well as profit-sharing terms, are specified
therein.

However, the BFAR shall provide a ceiling for rental fees to locators, in
consultation with the Sanggunian concerned, taking into consideration its
affordability to ordinary fisherfolks and the viability for its continued operation. In
granting lease agreements, LGUs shall give preference to local fisherfolk.

A development plan shail always be required of applicants to form part of the
bases for the grant of a license by the Mariculture Zone Advisory Council.

Considering the competing uses of seas and ocean space, the Philippine Coast
Guard (PCG), shall be required to determine if a proposed mariculture park or zone
and its facilities therein pose a significant navigational hazard or obstruct safe travel,
and, to issue a certification of its findings and recommendations and submit the
same to the DA.

Sec. 6. Ownership of Mariculture Parks. - Unless the Mariculture Park is
established by a private individual or corporation, the ownership of the park shall

belong to the municipality or city which has jurisdiction over the area. If the park is
established outside the municipal waters or within the territorial jurisdiction of two
(2) or more cities or municipalities, the ownership shall belong to the provincial
government which has jurisdiction over the area. If the area is within the territorial
jurisdiction of two (2) or more provinces, the provinces concerned shall enter into a

Joint Venture Agreement where the issue of ownership shall be defined.

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Sec. 7. Mariculture Zone Advisory Council. — The Mariculture Zone Advisory
Council is hereby created which shall be composed of the following:

1. Representative from the BFAR with a rank equivalent to a Director as

Chairperson;
2. The City or Municipal Agriculturist, or in the absence thereof, the Provincial
Agriculturist as Vice-Chairperson;

3. The City or Municipal Planning and Development Coordinator;

4. A representative from the registered fisherfolk organization or cooperative;

and

5. A representative from the private business sector directly involved with the

Mariculture Zone.

All members of the Advisory Council, and not their respective proxies, shall be
required to attend all council meetings.

Sec. 8. Functions of the Maritime Zone Advisory Council, — The Mariculture
Zone Advisory Council shall have the following functions:

1. To operate, administer, manage and develop the Mariculture Zone

according to the principles set forth in this Act;

2. To register, regulate and supervise the enterprises in the Mariculture Zone

in an efficient and decentralized manner;

3, To exercise general supervision over the development, plans, activities

and operations of the Mariculture Zone; and

4. To ensure that all revenues of the Mariculture Zone are properly collected

and remitted to the LGUs.

Sec. 9. Mooring Spaces. ~ Grant of Mariculture Zone areas shall be based on
mooring spaces to ensure that usage of area for sea cages, long lines and other
culture structures is limited to the granted space as provided, Granted mooring
spaces not developed/installed with culture structures within six (6) months will be
forfeited and awarded to other qualified applicants. The BFAR shall prescribe the
guidelines in the installation of sea cages, long lines and other culture structures.

Sec. 10. Support Infrastructures. — To ensure reliable access, cost-effective

distance and economic feasibility of the Mariculture Park and Zone, the Advisory


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Council shall cause the establishment of support infrastructures such as, but not
limited to floating guardhouses, onshore feed warehouse, net mending and drying
shed, a pier, ice plant and cold storage facility.

To ensure fish safety and control diseases, the Advisory Council shall provide
for a water quality monitoring system to determine the presence of marine litter,
agricultural run-off and pathogenic contaminants in the Mariculture Parks and Zones.

In addition to the physical infrastructure, socio-economic infrastructure shall
likewise be placed to ensure the success of the Mariculture Park and Zone such as
the registration of fisherfolk, fisheries cooperatives and organizations.

Sec. 11. Energy Supply. ~The LGU shall ensure twenty-four (24)-hour electric
power supply for the Mariculture Park and Zone cold storage facility through self-
generation or through a power supply agreement with an electric cooperative,
distribution utility, sub-transmission or transmission company serving the area
nearest the Mariculture Park and Zone: Provided, That the Advisory Council shall first
determine the feasibility of installing a self-generating renewable energy system for
the exclusive use of the Mariculture Park and Zone: Provided, further, That the
Advisory Council shall utilize power from self-generation if the price per kilowatt hour
is lower than power from other entities.

Sec, 12, Aquaculture Technical Assistance and Training to LGUs, Fisherfolk
Cooperatives and Associations, and, Non-Governmental Organizations. — The
SEAFDEC, through its Aquaculture Department, shall provide technical assistance,
training and marketing support to LGUs, coastal fishermen, _fisherfolk
cooperatives/association, and non-government organizations with respect to the
establishment, utilization and management of mariculture systems in their respective
jurisdictions. The SEAFDEC shall closely coordinate with the stakeholders concerned
for this purpose.

Sec. 13. Private Sector as Economic Partners. — Private individual investors or
enterprises shall, as far as practicable, be encouraged to take an active role in the
establishment, utilization and management of mariculture systems. Qualified private
investors or entrepreneurs shall coordinate with the local government officials


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concerned, local fishing community and appropriate government agencies, for this
purpose.

Sec. 14. Financing Scheme. - The Land Bank of the Philippines (LBP) shall
provide financial assistance to registered fisherfolk organizations/cooperatives for
the construction of the fish cage, long line and other culture structures and for the

procurement of the
scheduled annual payments of the loan. It shall reduce the interest rate and/or

reduce the principal obligation to make the repayment affordable for the fisher-folk.

| stocks and feeds. The LBP shall issue guidelines on the

The LBP shall render quarterly reports on the disbursement of funds for the National
Mariculture Program.

Sec. 15. Continuing Research and Development. - The BFAR shall conduct
continuing research and development as well as application of technological
advancements in the mariculture industry. A one (1)-hectare Research and
Development area shall be designated within a province, city or municipality for the
conduct of research and demonstration activities as well as a venue for the
manpower capability trainings in the mariculture zone. This area shall be jointly
managed by the LGU and BFAR.

Sec. 16. Monitoring and Evaluation. - The DA shall monitor the
implementation of Research and Development programs and mariculture projects.
The BFAR shall review all existing mariculture parks and zones every four (4) years,
to determine their viability or effectiveness. The BFAR shall employ the services of
independent evaluators to assess the overall impact of the country’s mariculture
development. A quarterly Performance Evaluation issued by independent evaluators
shall be submitted to the BFAR for this purpose.

Sec. 17. Identification of Mariculture Areas. — Within six (6) months from the
effectivity of this Act, the BFAR shall identify the LGUs which have potential areas for
the establishment of mariculture parks: Provided, That not later than one (1) year
from the effectivity of this Act, the BFAR, in coordination with the LGUs concerned,
shall complete the blueprint of each mariculture park in the identified areas.

Sec. 18. Annual Report. ~The DA, through the BFAR, shall render an annual

report to Congress on the accomplishment of the program. A review on the viability

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of the program which includes a complete list of areas suitable for the establishment
of mariculture parks in the country with their respective feasibility study shall be
made by the agencies concerned after three (3) years of its implementation.

Sec. 19. Information Campaign. — The BFAR shall undertake intensive public
information campaign within three (3) months from the effectivity of this Act.

Sec. 20. Appropriations. — To effectively carry out the provisions of this Act
during the first year of implementation, the initial amount of Five Hundred Million
Pesos (P500,000,000.00) is authorized to be taken from the applicable
appropriations of the DA and from Over-All savings of the Executive Branch of
government. Thereafter, such sums as may be necessary for the continued
implementation of this Act shall be included in the succeeding annual General
Appropriations Act.

Sec. 21. Implementing Rules and Regulations. — Within ninety (90) days upon
the approval of this Act, the DA, through the BFAR, together with the Department of
Interior and Local Government (DILG) and the representatives of the League of
Provinces, League of Cities, and League of Municipalities, shall adopt rules and
regulations necessary to implement the provisions of this Act.

Sec. 22. Repealing Clause. ~ All laws, acts, decrees, executive orders,
issuances, presidential proclamations and rules and regulations or parts thereof
which are contrary to and inconsistent with this Act are hereby repealed, amended
or modified accordingly.

Sec. 23. Effectivity. - This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,