C.A.

141 SECTION 64 DAO 2000-24 SECTION 15 & 16

a) The rental shall not be less than 3 % of the appraised or reappraised value of the land plus 1) The lessee shall not assign, encumber or sublet his rights of the lease without prior consent
1% of the appraised or reappraised value of the improvement, issued by the PENRO/RED/Secretary, as the case may be; (SECTION 15)

except for lands reclaimed by the Government which shall not be less than 4% of the
appraised or reappraised value of the land plus 2% of the appraised or reappraised value of
the improvements thereon:

Provided, That 25% of the total annual rental on all lands reclaimed prior to the approval of
this Act and 1% of the appraised or reappraised value of improvements shall accrue to the
construction and improvement portion of Portworks Fund:

And provided, further, That annual rental on lands reclaimed using the Portworks Fund
together with the fee due on account of the improvement thereon after the effectivity of this
act shall all accrue to the construction and improvement portion of the Portworks Fund.

b) The land rented and the improvements thereon shall be reappraised every 10 years if the 2) Nothing in this section shall be understood or construed to permit the assignment,
term of the lease is in excess of that period. encumbrance or subletting of foreshore lands to persons, or
associations/corporations/partnerships which are not authorized to lease such lands under
C.A. 141 as amended and other pertinent laws;

c) The term of the lease shall be as prescribed by section 38 of this Act. (25 years renewable for 3) It is strictly prohibited to remove or dispose any timber/except as provided under P.D. 705
another 25 years) as amended, or

any stone, oil, coal, salt, or other minerals or medicinal mineral waters existing within the lease
area.

Violation of these conditions by the lessee shall cause the forfeiture of his rights stipulated in
the lease agreement and render him liable to immediate dispossession and suit for damages;

d) The lessee shall construct permanent improvements appropriate for the purpose for which 4. All projects introduced by the lessee shall be subject to the Environmental Impact
the lease is granted, Assessment System;

shall commence the construction thereof within 6 months from the date of the award of the
right to lease the land, and shall complete the said construction within 18 months from said
date.
e) At the expiration of the lease or of any extension of the same, all improvements made by
the lessee, his heirs, executors, administrators, successors, or assigns shall become the
property of the Government.
f) The regulation of all rates and fees charged to the public; and the annual submission to the
Government for approval of all tariffs of such rates and fees.
g) The continuance of the easements of the coast police and other easements reserved by
existing law or by any laws hereafter enacted.
h) Subjection to all easements and other rights acquired by the owners of lands bordering
upon the foreshore or marshy land.
The violation of one or any of the conditions specified in the contract shall give rise to the
rescission of said contract. The Secretary may, however, subject to such conditions as he may
prescribe, waive the rescission from a violation of conditions of subsection (d), or extend the
time within which the construction of the improvements shall be commenced and completed.
5. The lessee shall be required to pay the annual lease rental within 15 days after receipt of the
approved lease contract for the first year. Thereafter, said lease rental shall be paid annually on
or before the 5th day of the first month of the year during the life of the lease and without the
need of notice of demand to pay;
6. The lessee shall be required to follow strictly the implementation of the approved
development plan;
7. The salvage zone described herein shall not form part of the agreement.
Further, the lease is subject to easement reserved by the Law on Waters and to the provisions
of Sections 41, 109, 110, 111, 112, 113 and 114 of C.A. 141 as amended; and
8. The lease shall not give lessee any right to conduct any reclamation work within or adjoining
the area under his lease.
Section 16 (Ground for cancellation)
The grounds for cancellation are as follows:
1. Any violation of the provisions of C.A. 141 as amended regarding Foreshore Lands and the
additional conditions under the preceding section of this Order; and
2. Non-payment of annual lease rental for 2 consecutive years.