EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
48
‘HLB. No. 34

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

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 PSO0-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 cities and towns along the
whole length of the country’s 36,289 km. coastline. Our archipelago lies at the Earth’s center

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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 11.9 percent of the Filipino diet, at 37
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. Likewise, 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
hitp/vww-fao.org/docrep/w13 10e4w 13 1004, htm

2 Bureau of Fisheries and Aquatic Resources ~ Philippine Fisheries Profile 2017: Food Consumption


The latest BFAR data show total mariculture production in 2017 of 117,790.2 metric
tons (mt) with the biggest production at 86,005 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 2018 Labor Force Survey has reported that 1.1
million employed in Fishing and Aquaculture received an Average Daily Basic Pay of
267.84, which is P174.94 less or 49% smaller than the all-industry daily basic pay of
442.78, as of 2018. If a fisherman would work for 30 days in a month, he would earn
8,035.2, which is P4,541.8 lower than the 2018 first-half poverty threshold of P12,577 and
P768.8 lower than the food threshold of P8,804 a month. 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,

* 2018 Labor Force Survey



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EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
HB. No. 3448

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

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;

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;


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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 lines 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, otherwise known as the
Local Government Code, the officials of the local government unit 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.


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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 concemed, taking into consideration its affordability to ordinary
fisherfolks and the viability for its continued operation. In granting lease agreements, local
government units shall give preference to local fisherfolk.

A development plan shall 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 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 or more provinces, the provinces
concerned shall enter into a Joint Venture Agreement where the issue of ownership shall be
defined.

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.


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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 local government unit/units.

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 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 Local Government Unit shall ensure 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

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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 Local Government Uni

Fisherfolk Cooperatives and Associations, and, Non-Governmental Organizations. ~ The
SEAFDEC, through its Aquaculture Department, shall provide technical assistance, training
and marketing support to local government units, 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 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 initial
stocks and feeds. The LBP shall issue guidelines on 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. 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-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


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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 local government units 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 local government
units 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 of the program
which includes a complete list 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. — The initial amount of Five Hundred Million Pesos
(P500,000,000.00) is hereby appropriated to effectively carry out the provisions of this Act
during the first year of implementation. Thereafter, such sums as may be necessary for the
continued implementation of this Act shall be included in the succeeding General
‘Appropriations Act.

Sec. 21. Implementing Rules and Regulations. ~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 within ninety (90) days upon
the approval 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,