Guidelines for issuing Aquaculture Projects Licenses

1 Kingdom of Saudi Arabia Ministry of Agriculture Deputy-Ministry for Fisheries Affairs First: Guidelines for issuing Aquaculture Projects Licenses Department of Fisheries Resources (2014 AD – 1435 AH) 2 This translation is provided for guidance. The governing text is the Arabic text 3 Introduction As the authority responsible for overseeing the aquaculture industry in the Kingdom, the Fish Farming Department of the Ministry of Agriculture is responsible for controlling the licensing of aquaculture projects and all control works. Since it is important to keep up with the current developments in the aquaculture sector and the steady increase in the number of its projects, as well as the expected future growth for this promising industry in all its aspects, this system of instructions, controls, and procedures have been developed. This established framework aims to grow this sector and its conformity with the concept of sustainable development of aquaculture in the Kingdom. These instructions provide the general features of the new directives of aquaculture projects licenses and controlling the businesses thereof. Also, these instructions provide the procedures for submitting new license applications and the requirements thereof for any investor who wishes to start or continue investing in aquaculture projects. Moreover, these instructions provide a controlling vision for implementing these projects after obtaining their licenses. In general, these instructions must be observed when applying the controls and procedures of issuing licenses and controlling aquaculture projects and the businesses thereof. These controls and their regulating procedures of issuing aquaculture project licenses and controlling the businesses thereof include all obligations all investors must comply with. Any investor engaged in the management and administration of aquaculture operations shall be responsible for carrying out such controls. The competent authority shall be responsible for overseeing the activities of aquaculture projects. You may receive a soft copy of these guidelines, controls, procedures, and all license application forms on the Ministry's website. 4 First: Definitions • Instructions The administrative and technical directives explaining the control outlines and procedures for issuing aquaculture project licenses and controlling the businesses thereof. • Competent authority The Fish Farming Department working under the responsibility of the Deputy-Ministry for Fisheries Affairs in the Ministry of Agriculture, which is responsible for all aquaculture businesses in the Kingdom. • Related authorities The authorities having relationship with some interim procedures for project licenses in the Kingdom • Regulations A set of provisions regulating the issuance of licenses and the establishment and operation of aquaculture projects in the Kingdom. • Procedures A set of detailed executive steps of the controls of issuing licenses, establishing and operating aquaculture projects in the Kingdom. • Decision-making Committee The Committee responsible for deciding on applications for aquaculture projects in the Kingdom, chaired by H.E. Deputy Minister for Fisheries Affairs, is composed of various experts from the relevant ministries, a legal expert, and the Saudi Aquaculture Society. • Committee of Five A committee formed to consider the applications of waterfront owners to conduct refilling and dredging operations. This committee comprises the Ministry of Municipal and Rural Affairs, the Ministry of Interior (the General Directorate of Border Guard), the Ministry of Agriculture, the Ministry of Finance, and the General Authority of Meteorology and Environmental Protection • Responsible aquaculture The production of marine organisms such as fish, crustaceans, oysters, algae, aquatic weeds and others under 5 family conditions and the control of breeding factors in compliance with all controls and standard reference criteria regulating production processes. Second: Axes regulating licenses issuance The hubs regulating the issuance of aquaculture project licenses and controlling the businesses thereof include the following main items: 1- General instructions 1.1 The general instructions aim to clarify the controls and procedures’ outlines of issuing aquaculture projects licenses and controlling the businesses thereof. 1.2 They clarify the nature of aquaculture projects and the controls and procedures system through which they must work. 2- Regulations 2.1 They are the main legal framework for aquaculture projects in the Kingdom. 2.2 They specify the powers and duties of the governmental authorities (the competent authority and other related authorities) and the main obligations of aquaculture projects. 2.3 They stress the legal capacity of the administrative and technical stipulations outlined in the procedures of issuing aquaculture project licenses. 3- Procedures 3.1 Administrative procedures include detailed lines related to the stages of issuing aquaculture project licenses. 3.2 The technical procedures specify the optimal limits of aquaculture standards with regard to controlling works and obligatory inspection of production systems, environment management, veterinary quarantine, and biosecurity. 6 Third: Standards and controls of issuing aquaculture projects licenses and controlling businesses thereof 4- The controls of issuing aquaculture project licenses and controlling the businesses thereof aim to promote responsible breeding of marine organisms within a sustainable development framework of the aquaculture industry. This can be accomplished through a strong administrative and technological framework that enables the creation and growth of a marine organisms breeding industry capable of meeting the local market requirements and competing in international markets. These controls aim to protect this industry against the threats generally represented in pathogens, sources of chemical contamination, environmental damages that may arise from excess organic loads, and others. 5- The controls are based on sound management principles, internationally recognized common standards, and the best administrative and technical practices, such as: 5.1 Ensuring the maintenance, long-term management, and sustainable exploitation of aquaculture projects and the resources thereof to meet the requirements of current and future generations. 5.2 Avoiding and mitigating the negative effects that may occur as a result of aquaculture practices on terrestrial, coastal, and marine environments. 5.3 Observing the rights, interests, and needs of the aquaculture industry and its workforce. 5.4 The obligatory implementation and application of these controls and the procedures based thereon. 5.5 Applying the principles of good control, accountability, and transparency. 5.6 Coordination with the Saudi Aquaculture Society with regard to the related decisions. 6- Encouraging investment by all aquaculture sectors, ensuring that investors contribute to the successful growth of this field, and emphasizing the targeting of serious investors with professional and economic skills and the opportunity to receive licenses under these controls. Fourth: Mechanisms of obtaining aquaculture projects licenses 7 7- Requisites for obtaining licenses The requisites of these controls are based on the fact that all aquaculture projects in the Kingdom shall obtain the licenses regulating their businesses 7.1 New projects licenses To obtain aquaculture project licenses, investors shall follow several successive stages. The goal of these phases is to ensure the seriousness, consistency, and appropriateness of these projects with the production systems of investors and to be subject to inspection by the competent authority and other relevant authorities. These stages are: 7.1.1 Submitting application and pre-qualification 7.1.2 Submitting project’s initial technical and economic feasibility study 7.1.3 Carrying out meeting and submitting proposals to the Decision-making committee for approval 7.1.4 Obtaining security approval from the General Directorate of Border Guard (for marine projects) 7.1.5 Issuing initial approval of site examinations (for marine projects) 7.1.6 Submitting project’s environmental feasibility study and obtaining environmental approval. In case a project needs a berth, the Committee of Five’s approval of refilling and dredging works shall be obtained. 7.1.7 Submitting project’s final technical and economic feasibility study 7.1.8 Issuing final approval and project’s licenses (structural – operational) Here is a brief introduction for each stage, noting that all the plans and studies’ details and requirements for each stage are listed in the related technical procedures: 7.1.1 First stage: submitting application and pre-qualification 8 This stage of submitting an application and ensuring the investor’s pre-qualification, as stated in the application form, aims to allow the investor to submit an aquaculture project licensing application. After that, the competent authority verifies the application’s conformity with the general principles of marine organisms’ responsible breeding within the sustainable development requirements of the aquaculture industry in the Kingdom. The application form includes the information necessary for assessing investor’s pre-qualification. This form is accessible via the Ministry’s website. After receiving the form, the competent authority reviews it. This may require more information to support the review process. Based on this review, the competent authority may decide on whether to invite the investor to submit its project’s initial feasibility study or to notify it of the application refusal. 7.1.2 Second stage: Submitting project’s initial technical and economic feasibility study • This stage of submitting an initial technical and economic feasibility study aims to provide the competent authority with initial details on the proposed project’s feasibility and investor’s financing sources. • For marine projects: after approving the project’s initial technical and economic feasibility study, the competent authority examines the selected site and verifies the initial technical appropriateness thereof. • The project’s initial technical and economic feasibility study, as detailed in the related technical procedures, contains three key elements: 7.1.2.1 Technical measures plans: they include farmed species’ details, selected site’s specifications and its objective appropriateness, utilities and production systems, biosecurity, production schedule and feed use, environmental and social considerations related to the economic aspects. 7.1.2.2 Economic efficiency requirements: Cost estimation, cash flow, the required financing, sources, and investor’s financial situation. 9 7.1.2.3 Technical efficiency requirements: they include the project’s proposed administrative and technical team and information about their aquaculture expertise, and investor’s expertise in such kind of projects. 7.1.3 Third stage: Carrying out meeting and submitting proposals to the Decision-making committee for approval The competent authority requests from investor to provide a visual presentation explaining the content of the project’s initial technical and economic feasibility study before a technical committee is formed thereby, and then it files results to the Decision-making committee for approval. 7.1.4 Fourth stage: Obtaining security approval from the General Directorate of Border Guard (for marine projects) After approval by the decision-making committee, the competent authority shall address the General Directorate of the Border Guard to obtain security approval of the project's site. 7.1.5 Fourth stage: Issuing initial approval of site examinations (for marine projects) 7.1.5.1 The competent authority issues initial approval of the investor’s proposed site examinations for a one-year renewable period after approving the project’s initial technical and economic feasibility study. 7.1.5.2 The purpose of issuing initial approval of site examinations is to: • Assess site appropriateness for establishing and operating project • Carry out soil and water testing in the project’s site • Determine the site’s absorptive capacity by using accredited simulation systems through experienced companies. 10 7.1.6 Sixth stage: Submitting project’s environmental feasibility study A- Marine projects’ environmental feasibility study After verifying the appropriateness of project’s initial examinations and the sufficiency of site’s absorptive capacity, as targeted by the initial feasibility study, the competent authority addresses the General Authority of Meteorology and Environmental Protection to start the procedures for the project’s environmental approval. Investors must carry out the necessary environmental studies by a technical firm accredited by the latter Authority. • The key purpose of submitting a project’s environmental feasibility study is to ensure taking the necessary measures in accordance with standard environmental criteria. • Marine aquaculture projects require implementing a full assessment of environmental effects in accordance with standard environmental criteria. The environmental feasibility studies of marine aquaculture projects are submitted to the General Authority of Meteorology and Environmental Protection for review, approval, and issuing the necessary environmental licenses. This approval allows investors to start preparing the project’s final technical and economic feasibility studies, as stated in the seventh stage. B- Committee of five’s approval • In case a project needs a berth, the competent authority addresses the Committee of five to study the berth’s request and its environmental and technical specifications and approve its establishment as per the related regulations. In case there is a need for allocating coastal land for a berth, the allocated land is leased as per the applicable regulations. C- Assessing the state of groundwater for inland water projects • Inland aquaculture projects require assessing the influence of using water on the nature and state of groundwater to verify water appropriateness, in terms of quantity and quality, according to standard specifications, of which a report must be submitted to the 11 competent authority. This approval allows investors to start preparing the project’s final technical and economic feasibility studies. • Project’s water management: ✓ If an aquaculture project operates on an open system and is related to an agricultural project: the aquaculture project water needs must not exceed its related agricultural project water needs. ✓ If an aquaculture project operates on a closed system and is related to an agricultural project: the water exchange rate of the aquaculture project must not exceed 50% of the total water amount, with observance to the appropriateness with its related agricultural project needs. ✓ If an aquaculture project operates on a closed system and is not related to an agricultural project: the aquaculture project must operate on a water complete recycling system of 95% rate. 7.1.7 Seventh stage: Submitting project’s final technical and economic feasibility study This final study aims to provide the competent authority with the detailed information necessary for the approval/non-approval of issuing a structural license. This assessment is based on: 7.1.7.1 The technical and economic feasibility of the proposed project 7.1.7.2 The feasibility of schedule and investor’s technical and economic ability to implement it. 7.1.7.3 The investor’s technical and economic abilities 7.1.7.4 Studies’ appropriateness and applicability 7.1.7.5 Compliance of final technical and economic feasibility studies with the requirements stipulated in the related technical procedures. 7.1.7.6 Biosecurity and health precautions plane and the plane of coping with diseases injuries and managing risks resulting from injuring project by any pests injuries 12 7.1.7.7 Reviewing the final technical and economic feasibility study of the project by the competent authority and, if approved, the licensing procedures for the project will proceed. 7.1.8 Eighth stage: Final approval and issuing project’s licenses (structural – operational) This stage aims to issue project licenses by the competent authority as follows: 7.1.8.1 Issuing project’s structural license, the period of which is specified as per the final technical and economic feasibility study. 7.1.8.2 Issuing project’s operational license of a thirty-year period (renewable) after verifying the structural stage completion in accordance with the technical specifications set in the final technical and economic feasibility study. In some cases, a trial operation may be allowed if a long construction period is needed. 7.1.8.3 If a project is in operation and operates with its maximum productive potential and its investor wishes to extend to a neighboring vacant area; it must submit to the competent authority an application attached to all the justifications and studies supporting this proposal. After that, the competent authority reviews and decides on this application in coordination with the related authorities, taking into account that the application must go through all the aforementioned license issuance stages. Based on the foregoing, the project’s operational license is updated to include the total area after expansion and the new total productive capacity. 7.1.8.4 If a project is licensed with a specific area, and its operational processes are not activated in 30% of the total area, the competent authority addresses a notice to the investor stating that it shall complete the operational processes in the rest of the site and the targeted productive capacity stated in the related technical and economic feasibility study. This completion shall be made within a period specified by the competent authority in coordination with the investor. If the investor fails to do so, the project shall be relicensed as per the actual used area of the site, and the remaining area shall be withdrawn from the investor. 13 7.1.8.5 If a project is given an operational license and no operational processes are implemented within two years from the license issuance date, the competent authority addresses a notice to the investor stating that it shall complete the project’s operational processes as per the targeted productive capacity stated in the related technical and economic feasibility study. If the investor fails to do so, the project’s license shall be revoked, and the site shall be withdrawn from the investor and reallocated to another serious investor, taking into account the dealing with the establishment’s assets in the site. 7.2 Unlicensed projects in operation: 7.2.1 If an investor has an unlicensed aquaculture project, it shall notify the competent authority or the Fisheries branch as soon as possible within no more than a year from these controls’ effectiveness date. Otherwise, the competent authority may suspend the project and impose penalties. 7.2.2 A specialized technical team from the Ministry or the Fisheries branch organizes a visit to the project’s site and inspects facilities, with a view to: 7.2.2.1 Specify any urgent measures to be taken immediately to protect the environment and human health. 7.2.2.2 Issue a provisional license for the project if it is established that it complies with the standard criteria. 7.2.2.3 Advise on the other steps necessary to obtain license. 7.2.2.4 Make the investor comply with any technical notices provided by the technical team and implement any conditions necessary for obtaining the provisional license for aquaculture projects. 7.2.2.5 The provisional license allows continuing aquaculture businesses until the operational license is obtained. Fifth: Responsible management of the operation processes of aquaculture projects 14 8- Responsible management controls of projects’ operation processes 8.1 The Ministry grants aquaculture licenses under these controls based on the technical, economic, and environmental feasibility studies submitted by the competent authority and the other related authorities. 8.2 Under these controls, the investor shall start the project implementation once the structural license is issued. The project’s structural and operational implementation stages shall be done under the direct technical and administrative supervision of the competent authority to ensure that the implementation processes comply with the technical standards, schedule and other measures, production methods, and the responsible practices stated in the final technical and economic feasibility studies and the approved environmental study. 8.3 The investor shall strictly comply with the technical controls, procedures, and requirements issued or regularly updated by the competent authority. 8.4 The competent authority issues, reviews, develops, and updates the controls and procedures regularly, if necessary, in accordance with the aquaculture industry’s updates, including: 8.4.1 Specifying the minimum distances between projects 8.4.2 Environmental management 8.4.3 The needed equipment, establishments, etc. 8.4.4 Biosecurity 8.4.5 Preventing aquaculture marine organisms from access to natural environments. 8.4.6 Protecting natural reserves 8.4.7 Recruiting technically qualified staff to ensure effective aquaculture practices 8.4.8 Using antibiotic and chemical therapy, vaccines, and others 8.5 Taking into account the application of responsible operational practices to allow access to international markets for the products of aquaculture projects of marine organisms 15 Sixth: Inspection and monitoring 9- Inspection and monitoring controls 9.1 All investors shall submit to the competent authority regular reports about the achieved progress of the aquaculture project’s implementation stages, including: 9.1.1 The progress of the project’s structural work stages with regard to structural license. 9.1.2 The achieved progress of the project’s operational, administrative, and productive works with regard to structural license. 9.2 Inspectors officially appointed by the competent authority may visit the project’s site and any other project-related facilities to follow up and monitor the implementation and operation stages and to verify compliance with granted licenses’ conditions and the applicable regulations, subject to biosecurity controls. 9.3 Inspector may give a notice to investor in case of the (potential) breaching of the controls and stipulations regulating aquaculture licenses or the controls of structural or operational practices. In such a case, this investor shall take the necessary steps to resolve this breach or ensure the non-occurrence of a future potential breach. 9.4 Non-compliance with notice is a breach. According to the powers stated in controls allowing imposing penalties, suspending or withdrawing license, the competent authority may carry out remedial steps upon its responsibility and charge this cost to the investor. 16 Kingdom of Saudi Arabia Ministry of Agriculture Deputy-Ministry for Fisheries Affairs Second: Procedures for obtaining aquaculture projects licenses Fish Farming Department (2014 AD – 1435 AH) 17 Second: Procedures for obtaining aquaculture projects licenses Introduction The purpose of these procedures is to develop and regulate the licensing mechanisms for aquaculture projects in the Kingdom of Saudi Arabia. The terms used in these procedures have the same meaning outlined in the controls. 18 License application procedures 1. Application submission and pre-qualification procedures 1.1 Any investor (individuals or companies) wishing to submit a license application for an aquaculture project shall apply to the competent authority containing: 1.1.1 Technical description of the proposed project 1.1.2 A copy of: • National ID document, for Saudi citizen • Passport for foreign investor (after the approval of the General Investment Authority) • Commercial register for companies and establishments 1.1.3 A proof of financial solvency (bank certificate) 1.1.4 Signing a pledge to comply with all the technical and administrative controls and requirements applicable for establishing and operating project in case of application approval. 1.2 If an aquaculture project is to be carried out within inland waters, the applicant, in addition to the previous, shall submit: • A proof indicating that the aquaculture project is to be carried out within an established agriculture project • A copy of land title documents or a certified copy of lease contract of a period no less than 10 years. 1.3 The competent authority will approve a pre-qualification application if: • All the documents and information required by clauses (1.1) and (1.2) are provided and submitted • The competent authority becomes certain that these documents and information are accurate and correct. 2. Submitting project’s initial technical and economic feasibility study 19 If the pre-qualification application is approved, the competent authority will invite the applicant to submit the project’s initial technical and economic feasibility study, describing its size and specifications, economic objectives, work plan and mechanisms, and submit the documents proving its technical and financial ability for establishing and operating its project. Initial technical and economic feasibility study and visual presentation are assessed in accordance with the content of this technical and economic feasibility study by: 1. The competent authority. 2. As applicable, any other authority in the Kingdom related to the license application, including: • The Ministry of Water and Electricity: to assess the appropriateness of inland project’s water needs with the water reserves in the project’s area. • The Deputy-Ministry for Lands Affairs: to assess land use for coastal marine aquaculture projects • The General Directorate of Border Guard: to obtain security approval for marine aquaculture projects (floating cages and fences) 2.1 The competent authority approves initial study if it becomes certain that: 2.1.1 There is no objection to the project by any related authority, as mentioned in clause (1.4) above. 2.2 The proposed aquaculture project, as per the initial technical and economic feasibility study, is 1. Technically executable 2. Economically feasible 2.1.3 The proposed aquaculture project conforms with the aquaculture industry growth with regard to sustainable development and aquaculture responsible requirements in the long run. 2.2 The competent authority will: • Furnish investor with the reasons for refusing initial technical and economic feasibility study in writing, in case of refusal. • Submit to clear investor recommendations when approving technical and economic feasibility study and require correcting some of its clauses. 20 3. Carrying out meeting and submitting a proposal to the Decision-making committee for approval The competent authority may ask investor to submit a visual presentation clarifying the content of the initial technical and economic feasibility study before a technical committee is formed thereby. After that, results will be filed to the Decision-making committee for approval. 4. Obtaining security approval from the General Directorate of Border Guard for marine projects (for marine projects) After the decision-making committee’s approval, the competent authority addresses the General Directorate of Border Guard to obtain security approval for the project’s site. 5. Issuing initial approval for site examinations (for marine projects) 5.1 The competent authority issues initial approval of the investor’s proposed site examinations for a one-year renewable period after approving the project’s initial technical and economic feasibility study. 5.2 The purpose of issuing initial approval of site examinations is to: • Assess site appropriateness for establishing and operating project. • Carry out soil and water testing on the project’s site. • Determine the site’s absorptive capacity. • Assess the project’s environmental effect (environmental study) 6. Submitting project’s environmental feasibility study 6.1 The investor shall submit: • Assessment of the environmental effect for marine aquaculture projects • Assessment of the effect of using water for inland aquaculture projects 6.2 Environmental study shall be bound by the requirements and standards stipulated by the related governmental authorities. 7. Submitting project’s final technical and economic feasibility study 21 7.1 If environmental study is approved, the competent authority shall invite investors to submit a final technical and economic feasibility study, which shall include: • Project’s facilities technical management • Project’s economic aspects • The measures proposed for environment management and biosecurity • The procedures proposed for control • Project’s facilities engineering drawing 7.2 The competent authority may: • Approve project’s final technical and economic feasibility study • Approve project’s final technical and economic feasibility study with giving recommendations to make minor or major amendments • Refuse project’s final technical and economic feasibility study with furnishing investor with the reasons for the refusal in writing. 7.3 The competent authority will approve investor’s application and issue a license under aquaculture controls in the following cases: • Approving environmental study • Approving project’s final technical and economic feasibility study • For coastal marine aquaculture projects, approving project’s site lease contract by the Deputy ministry for Land Affairs. 8. Issuing project’s licenses (structural – operational) This procedure aims that the competent authority issues project’s licenses as follows: 8.1 Issuing project’s structural license, the period of which is set according to a final technical and economic feasibility study. 22 8.2 Issuance of a 30-year operating license for the project (renewable) after verifying the structural stage completion in compliance with the technical specifications set out in the final technical and economic feasibility study. 8.3 If a project is in operation and working with its full productive capacity and its investor wishes to expand into a neighboring vacant area; it must submit an application attached by all justifications and studies supporting this proposal to the competent authority. 8.4 If a project is licensed with a specific area, and its operational processes are not activated in 30% of the total area, the competent authority shall address a notice to the investor stating that it shall complete the operational processes in the rest of the site and the targeted productive capacity stated in the related technical and economic feasibility study. This completion shall be made within a period specified by the competent authority in coordination with the investor. 8.5 If a project is given an operational license and no operational processes are implemented within two years from the license issuance date, the competent authority shall addresses a notice to the investor stating that it shall complete the project’s operational processes as per the targeted productive capacity stated in the related technical and economic feasibility study. 23 Kingdom of Saudi Arabia Ministry of Agriculture Deputy-Ministry for Fisheries Affairs Third: Controls of issuing aquaculture projects licenses Fish Farming Department (2014 AD – 1435 AH) 24 Controls of issuing aquaculture projects licenses Introduction The aquaculture industry in the Kingdom is based on the efficient use of the available natural resources by setting up general policies, programs, and plans to coordinate these resources for sustainable development. Council of Ministers Resolution issued the Act on Fishing, Exploitation and Protection of Marine Life in the Territorial Waters of the Kingdom of Saudi Arabia No. 14 of 21/1/1408 AH and crowned by Royal Decree No. M/9 on 3/27/1408 AH. This Ministry seeks to achieve self-sufficiency in fish products and to contribute to national food security, to add variety and to update the production base to make the best use of available resources, to improve economic and marketing efficiency and to provide a variety of high quality, affordable fish products and to export surplus products. Due to the promising development of the aquaculture fields and businesses, it is necessary to keep up with this development through setting up modern mechanisms and controls regulating the processes of issuing aquaculture project licenses and controlling the businesses thereof. 25 First: Definitions • Procedures : A set of detailed executive steps for the control of issuing licenses, establishing and operating aquaculture projects in the Kingdom • Controls : a set of provisions regulating issuing licenses, establishing and operating aquaculture projects in the Kingdom • Investor : The legal entity applying for obtaining a license for marine organisms breeding project • Aquaculture : The production of marine organisms such as fishes, crustaceans, oysters, algae, aquatic weeds, and others under families conditions and controlling breeding factors. • Inland aquaculture : Increasing, caring for, and fattening marine organisms in internal areas using fresh water or drinking water as a culture environment. • Marine aquaculture : Increasing, caring for, and fattening marine organisms in marine areas using saltwater as a culture environment. • Aquaculture businesses : Any business carried out and related directly or indirectly to aquaculture • Aquaculture facilities : The main production units (such as nursing and breeding ponds – hatchery – feed plant) and supporting units (such as water treatment unit – ventilation units – laboratories – offices – storehouses – boats – transportation) 26 • Competent authority : The Fish Farming Department operating under the responsibility of the Deputy-Ministry for Fisheries Affairs in the Ministry of Agriculture, which is responsible for all aquaculture businesses in the Kingdom • Related authorities : The authorities related to some interim procedures for aquaculture projects licenses in the Kingdom • Environmental effect assessment : The process of identifying and assessing potential biological effects of the proposed project on the natural environment and all influences resulting thereof. • Licensee : The investor who holds the granted license • Initial approval of site examinations : An initial approval issued by the competent authority to start project’s site tests and analysis • Responsible aquaculture : The production of marine organisms such as fishes, crustaceans, oysters, algae, aquatic weeds, and others under families conditions and controlling breeding factors, and in accordance with all standard reference controls and criteria regulating production processes. • Sustainable aquaculture : A set of aquaculture practices ensuring the continuity of production processes in an economically feasible, environmentally responsible way. • Open aquaculture system : A system depending on its operation on open ponds in which water is partially exchanged as per water quality specifications. • Closed aquaculture system : A system depending on its operation on closed management of water by recycling after treating it mechanically and biologically. • Decision-making committee : A committee specializing in deciding on the applications of aquaculture projects in the Kingdom, headed by H.E Deputy-Minister for Fisheries Affairs, with some specialists from the related departments, legal consultants, and the Saudi Aquaculture Society. 27 Aquaculture inspector : The competent authority’s responsible person who has the right to control and inspect aquaculture projects. 28 Second: Objectives and General Principles 1. Objectives These controls aim to support the aquaculture industry development within the framework of sustainable development and long-term responsible aquaculture. 2. General Principles The competent authority shall undertake to establish a national aquaculture policy in order to achieve the following general policies: 1.2 Sustainable management of the aquaculture industry to ensure long-term management and conservation of aquaculture projects and water resources to meet the needs of present and future generations. 2.2 Ensuring the long-term competitiveness of the aquaculture industry in both national and foreign markets. 2.3 Applying the management, protection, and development standards of the aquaculture industry based on international standards and industry-standard best practices. 2.4 Monitoring, studying and evaluating the impacts resulting from the operational processes of aquaculture projects on the inland, coastal, and marine ecosystems. 2.5 Collecting, documenting, and exchanging information and preparing studies related to the fields of aquaculture. 2.6 Taking into account the interests, needs, and rights of the aquaculture industry workers. 2.7 Participating the investors and relevant authorities in decision-making. 29 Third: Management and Control 3- Responsibility of the competent authority The competent authority shall be entrusted with the responsibility of managing and controlling the operations and activities of the aquaculture industry on the territory, on the coasts, and in the sea water of Saudi Arabia. 4- Powers of the competent authority 4.1 The competent authority shall have full authority and responsibility for implementing such controls aimed at the development, planning, and implementation of the policies and legislation required to ensure the proper functioning of the aquaculture sector. 4.2 The competent authority may conclude an agreement with any legal person, governmental agency, or any organization, or local or international agency for any purpose related to the aquaculture sector in Saudi Arabia. 5- Aquaculture controls and procedures The competent authority shall: 5.1 Determine the detailed steps or administrative systems for any part of these controls and procedures. 5.2 Determine the technical requirements, standards, procedures, and systems that shall be applied in aquaculture activities, including the different types and stages of aquaculture projects or components of their current and future activities. 5.3 Controls and procedures approved by the competent authority: 5.3.1 The mandatory date shall be set to begin to apply these controls and procedures to aquaculture activities. 5.3.2 Advertising by appropriate means to notify investors of Mr. Minister's approval. 5.4 These controls and procedures shall be applied after approval. 30 6- Coordination between the competent authority and the relevant authorities In compliance with these comprehensive controls and procedures, the competent authority shall consider the appropriate administrative methods and steps for coordinating the licensing and supervision of aquaculture projects with all competent authorities. 7- Specialized committees The competent authority may establish what it deems necessary from the specialized administrative and technical committees to ensure the management and implementation of these controls and procedures regulating aquaculture activities with the participation of the Saudi Aquaculture Society. 8- Challenges 8.1 Any investor who may be impacted by any decision of the competent authority under these controls may first submit to Mr. Minister a challenge against that decision within fourteen days from the date of receiving the notification. 8.2 Mr. Minister or his authorized representative shall consider any challenge under Paragraph (8.1) and take whatever he deems appropriate in its regard. 8.3 The decision of Mr. Minister or whoever he delegates shall be final in any challenge submitted. 8.4 In case of any dispute between the investor and the Ministry, the dispute shall be considered in accordance with the regulations concerned with that activity. 31 Fourth: Licensing controls This chapter deals with the types of licenses for aquaculture projects, the requirements and mechanisms for obtaining them, and the procedures regulating this. 9- Necessity of obtaining projects license: Engaging in aquaculture activities without obtaining a valid license is considered a breach under these regulations. 10- Types of licenses The types of aquaculture project licenses issued by the competent authority shall include construction licenses, operational licenses (for new projects), and transitional licenses (for existing unlicensed projects). 10.1 Construction licenses 10.1.1 The Competent Authority shall issue the construction license for the aquaculture project's construction phase, including infrastructure construction and equipment installation. 10.1.2 The construction license shall be issued according to the technical and economic feasibility study of the project. 10.1.3 If the period of validity of the construction license expires without completing the project construction, the competent authority may: 10.1.3.1 Extend the license for another period. 10.1.3.2 Cancel the license if it is deemed to be appropriate. 10.2 Operational licenses 10.2.1 The competent authority shall issue the operating license for the aquaculture project if it is ascertained that: 32 10.2.1.1 The construction works have been completed in good condition, including infrastructure development and equipment installation. 10.2.1.2 The aquaculture project shall be sufficiently capable of initiating production following the terms of the license granted and the other standards contained in these controls and their procedures. 10.2.2 The operational license period shall be limited to thirty years. It may be renewed for other similar periods if it is confirmed to the competent authority that the licensed area for the project has been developed and operated in accordance with the production capacity listed in the technical and economic feasibility study of the project. 10.2.3 The competent authority may warn the investor and consider suspending or canceling the operating license of the project if it is ascertained that the investor is not serious and is not committed to controls and procedures regulating the operational processes according to the technical and economic feasibility study of the project. 10.3 Transitional licenses 10.3.1 The investor, who practices aquaculture activity without a license, shall immediately submit to the competent authority an application to obtain a transitional license in the form and manner specified by the competent authority. 10.3.2 After the investor submits the application mentioned in paragraph (10. 3.1), the competent authority shall visit the unlicensed project site to do the following: 10.3.2.1 Inspect the facilities. 10.3.2.2 Making a report aimed at identifying any urgent steps that shall be taken immediately to protect the environment, human health, or other neighboring aquaculture projects, and determining when these steps shall be completed. 33 10.3.2.3 Issuing a transitional project license if it is confirmed to the competent authority that the unlicensed aquaculture project can be continued temporarily without risks to the environment, human health, or other neighboring aquaculture projects. 10.3.3 The investor shall apply for an operating license for his project within one year from the date of obtaining the transitional license. 10.3.4 The transitional license shall expire if the application for obtaining the operating license is not submitted after one year from the date of issuance of the transitional license, in accordance with paragraph (10. 3. 3) above. 11- Procedures for obtaining licenses 11.1 General terms 11.1.1 The application shall be submitted according to the form prepared by the competent authority. 11.1.2 The competent authority shall issue any administrative decision or prepare a protocol in accordance with these controls that includes detailed requirements for the procedures for obtaining licenses. 11.2 Special terms 11.2.1 Inland water aquaculture projects A license for an inland water aquaculture project shall be issued according to the following: 11.2.1.1 The fish project shall work with an open system within an existing agricultural project, provided that the fish project water requirements do not exceed the agricultural project water requirements. 11.2.1.2 The fish project shall work with a closed system within an existing agricultural project, provided that the rate of water change in the fish project does not exceed 20% of the water volume in the fish project. 11.2.1.3 The fish project shall not be associated with an existing agricultural project. In this case, a closed water management system shall be followed, provided that the rate of water change in the fish project does not exceed 5% of the total volume of water in the fish project. A study shall be prepared on the aspects of utilizing the sewage water. 11.2.1.4 The licensing stages generally include the following terms: 34 11.2.1.4.1 Submission of the license application by the investor In order to obtain a license for an inland aquaculture project, the investor shall complete the application form data prepared by the competent authority and attach to the form all the documents and documents required and detailed in the procedures for such projects. 11.2.1.4.2 Submit a preliminary technical and economic feasibility study for the project The competent authority shall request the investor to submit the preliminary technical and economic feasibility study for the project, which is detailed in the relevant technical procedures, which includes three main elements: • Technical Procedures: include farmed species, site, facilities, production systems, biosecurity standards, production schedule, feed use, and environmental considerations. • Economic Efficiency Requirements: These include cost estimation, cash flow, required financing, sources, and investor's financial condition. • Technical Competency Requirements: includes the proposed administrative and technical team to manage the project, and a statement of their experiences in aquaculture and the investor's experience in this type of projects. 11.2.1.4.3 Water Status Report in the Project Area • • The competent authority shall request a technical report from the Ministry of Water and Electricity on the nature, quantity, and efficiency of the well water to ensure its suitability for the proposed project. 11.2.1.4.4 Submit the Final Technical and Economic Study for the Project • The competent authority shall request the investor to submit the final technical and economic feasibility study for the project in accordance with the detailed criteria contained in the relevant procedures. • The competent authority shall make any amendments to the final technical and economic feasibility study of a project as it deems appropriate. The competent authority shall, after accepting the amended studies and reports, complete the statutory procedures. 35 11.2.1.4.5 Issuing the Construction License • The construction license for the project shall be issued based on the competent authority's approval. Its period shall be determined according to the technical and economic feasibility study for the project, and it can be extended if necessary. • The construction license shall include the requirements of the construction phase based on the competent authority’s recommendations. 11.2.1.4.6 Issuing an Operating License • • The operating license for the project shall be issued for a period of thirty years, which may be extended after inspection by the competent authority and shall ensure that the construction process has been completed in accordance with the requirements in the construction license issued for the project. • The competent authority shall warn the investor who is not bound by the controls of the target production capacity and stipulated in the technical and economic feasibility study that it shall be completed within a period of time determined by the competent authority. • The competent authority shall warn the investor who has issued an operating license and has not carried out any operational works during the period stated in the study of the necessity to complete the operational operations in the project, and if the investor does not comply, consideration shall be given to suspending or canceling the license granted to the project. 11.2.2 Coastal and Offshore Aquaculture Projects 11.2.2.1 The investor shall complete the form data for obtaining a license for a coastal or offshore aquaculture project prepared by the competent authority and attach to the form all the papers and documents required and detailed in the procedures for such type of projects. 11.2.2.2 Submit a Preliminary Technical and Economic Feasibility Study for the Project. 11.2.2.2.1 The competent authority shall request the investor to submit the initial technical and economic feasibility study for the project, which is detailed in the relevant technical procedures and includes three main elements: 36 • Technical Procedures: include farmed species, site, facilities, production systems, biosecurity standards, production schedule, feed use, and environmental considerations and social considerations related to economic aspects • Economic Efficiency Requirements: These include cost estimation, cash flow, required financing, sources, and investor's financial condition. • The competent authority shall order the investor to submit a visual presentation describing the content of the preliminary technical and economic feasibility study to the technical committee formed by the investor and to submit the results to the decision-making committee for approval. 11.2.2.2.2 The competent authority shall, after the technical and economic feasibility study approval of the project by addressing the border guards to take the security approval for the proposed project site. 11.2.2.2.3 After security approval, the competent authority shall issue preliminary approval for one year to conduct project site tests (for marine projects). 11.2.2.3 Preliminary Approval for Site Tests 11.2.2.3.1 The competent authority shall issue initial approval for site tests to enable any necessary tests to be carried out to prepare the studies and analyses required to evaluate the site technically and environmentally. 11.2.2.3.2 According to these controls, the competent authority may issue any procedure that includes detailed requirements for issuing preliminary approval for site tests. 11.2.2.4 Submitting the Environmental Study 11.2.2.4.1The competent authority shall direct the investor to submit an environmental feasibility study for the project to the General Authority of Meteorology and Environmental Protection to assess the environmental feasibility of the project. 11.2.2.4.2 If the project requires its own berth, the competent authority shall address the Committee of Five to study the marina's request and its environmental and technical specifications and agree to establish the berth according to the relevant regulations. 11.2.2.5 Submitting a Technical and Economic Feasibility Study 37 • The competent authority requests the investor to submit the final technical and economic feasibility study for the project in accordance with the detailed criteria and related procedures. • The competent authority shall request the investor to make amendments to the technical feasibility study, reports, and any other allocations. After approving the updated studies and reports, the competent authority shall complete the statutory procedures relating to them. 11.2.2.6 Issuing the Construction License • The construction license for the project shall be issued based on the final technical and economic feasibility study for the project. Its period shall be extended with the approval of the competent authority • The construction license shall include the requirements for the construction phase of the project based on the visions of the competent authority. 11.2.2.7 Issuing the operating license • The operating license for the project is issued for a period of thirty years, which is renewable after the approval of the competent authority. • If the project is existing and operating at full production capacity and the investor wishes to expand into a nearby vacant area, it shall submit an application to the competent authority attached with all the justifications and studies supporting this proposal. At the same time, the competent authority reviews the request and decides on the same in coordination with the relevant authorities, taking into account that the application shall go through all the aforementioned license issuance stages. Accordingly, the operating license of the project will be modified to include the total area after expansion as well as the new total production capacity. • If the project has been licensed for a specific area and the operational processes have not been activated in 30% of the entire area, the competent authority shall issue a notice to the investor to complete the operational processes in the rest of the site and to complete the target production capacity stipulated in the technical and economic feasibility study within a period of time determined by the competent authority in coordination with the investor. In the event of non-compliance by the 38 investor, a license for the project will be re-issued according to what was exploited from the site, and the rest of the area shall be withdrawn from the investor. • If an operating license has been issued for the project and no operational work has been carried out within two years of the license being issued, the competent authority shall inform the investor of the need to complete the operation of the project in compliance with the target production capacity set out in the technical and economic feasibility study. In the case of an investor's inability to comply, the project's license will be reissued based on what has already been exploited from the site, and the rest of the area will be withheld from the investor. 11.3 License Renewal Controls 11.3.1 The competent authority may renew the license for the aquaculture project after ensuring that: 11.3.1.1 The project conforms to the objectives stipulated in the environmental study and the technical and economic feasibility study. 11.3.1.2 The investor shall comply with the controls and requirements of the license granted thereto. 11.3.1.3 The technical and financial ability of the investor to continue in the productive program of the project according to what was mentioned in the technical and economic study and the operational license thereto. 11.3.1.4 The project has no negative impacts on the environment. 11.3.2 The competent authority may refuse to renew the license if the following is confirmed: 11.3.2.1 Failure of the investor to abide by the terms and conditions of the license granted thereto. 11.3.2.2 The investor provides the competent authority or other relevant authorities with incorrect, incomplete, or misleading information. 11.3.2.3 The licensed investor undertakes another activity or practice that may cause damages to the aquaculture industry. 39 11.4 Controls for adding facilities to aquaculture projects Investors of aquaculture projects licensed under these controls may add new facilities to the projects within the licensed site with the authority’s approval and adherence to the conditions regulating the same. 11.5 Controls for expanding aquaculture projects Investors of aquaculture projects licensed and operating at full production capacity in accordance with these controls may expand projects outside the licensed site with the approval of the competent authority and adherence to the conditions regulating the same, taking into account that the expansion application shall go through all the aforementioned licensing stages. Accordingly, a new operating license for the project will be issued that includes the total area after expansion as well as the new total production capacity. 11.6 License Assignment Controls 11.6.1 The license shall only be assigned with written approval from the competent authority. 11.6.2 The license shall not be assigned unless the following is confirmed with the competent authority: 11.6.2.1 The appointed investor shall have the technical and financial capacity required to develop or complete the establishment or operation of an aquaculture project in accordance with the regulations governing the same and issued by the competent authority. 11.6.2.2 Project continuity has no negative impacts on the environment. 11.6.3 The competent authority may issue a procedure in accordance with these controls for the detailed requirements of the steps for assigning a license. 11.7 license Amendment Controls 11.7.1 According to these regulations, the competent authority shall amend the license according to the justifications for amending the production plan mentioned in the investor’s application and the approval of the competent authority thereon. 40 11.7.2 The competent authority, under these controls, may request additional studies, plans, or any other information it deems necessary to make a decision to amend the license. 11.8 Responsible Operating Controls According to these controls, the competent authority may stipulate a commitment to rehabilitate the affected areas in the event of irresponsible operation of the project, abandonment, or assignment thereof. 11.9 Consulting Office Controls 11.9.1 The consulting offices with experience and competence in the following areas shall be accredited: 11.9.1.1 Technical design of appropriate aquaculture projects in the Kingdom of Saudi Arabia. 11.9.1.2 Economic and financial analysis of aquaculture projects. 11.9.1.3 Environmental management for aquaculture projects. 11.9.2 A special license may be given by the competent authority allowing the existing and new consultants to conduct business related to the preparation of technical and economic studies for aquaculture projects in compliance with the regulations regulating the same. 11.9.3 The competent authority, according to these regulations, may issue a procedure to define the requirements or criteria for accrediting consulting offices and their licenses. 11.9.4 The competent authority, according to these controls, may suspend or revoke the license granted to the consulting office in case of violating the requirements of the license according to the type of violation. Fifth: Controls of responsible aquaculture practices 12. Distance between projects The competent authority may determine the minimum distance that must be maintained between aquaculture projects and adjust the same if it deems it appropriate. 13. Environmental Management 41 13.1 Aquaculture facilities shall be constructed and operated in an environmentally responsible manner. 13.2 The competent authority may issue procedures for detailed requirements to ensure environmentally responsible aquaculture. 13.3 The investor shall make the necessary environmental surveys and document the project area's environmental condition, based on the permit for the aquaculture site tests issued to it by the competent authority. 14. Facilities and Equipment 14.1 The installations and equipment suitable for aquaculture activities should be selected, which shall have good characteristics and be used with appropriate precautions. 14.2 The competent authority may issue a procedure that includes the characteristics and requirements of the installations and equipment as well as their manufacture, use, and approval documents. 15. Biosecurity standards 15.1 Aquaculture facilities shall be constructed and operated according to the prescribed biosecurity standards and controls. 15.2 The competent authority may issue a procedure for the requirements, standards, and biosecurity controls in aquaculture projects. 16. The entry of cultured aquaculture into natural environments 16.1 The establishment and operation of aquaculture facilities shall be carried out in compliance with specified standards to prevent the intrusion into the natural environment of cultured aquaculture. 16.2 The competent authority may issue a procedure for the investor's requirements to implement the plans and steps to prevent cultured aquaculture's entry into the natural environment. 17. Rehabilitation of damaged project areas 42 17.1 Any investor working in aquaculture activities must rehabilitate the site and the surrounding areas if the construction or production phase has not been completed in whole or in part, including the safe disposal of aquaculture, equipment, etc. 17.2 The competent authority may issue a procedure for the requirements of rehabilitating areas affected by the operation of projects. 18. Natural reserves The competent authority may prohibit or change the location of aquaculture activities if these measures are necessary to preserve natural reserves of special value for aquatic organisms. 19. Technical and administrative competence of project work teams 19.1 Any investor working in aquaculture activities must employ highly qualified technical and administrative personnel to manage the project. 19.2 The competent authority may issue a special procedure for the employment of qualified technical and administrative personnel, as well as a requirement for test experience and a minimum appropriate standard of qualifications and experience. 20. Use of antibiotics, chemical treatments, and vaccines 20.1 Antibiotics, chemical treatments, and vaccines shall be used in aquaculture projects in accordance with the regulations governing the same, which are issued by the competent authority. 20.2 The competent authority may issue a procedure for requirements related to the use of antibiotics, chemical treatments, and vaccines in the aquaculture projects. 21. Others According to these regulations, the competent authority may issue a procedure for any other requirements to ensure the efficiency and responsibility of aquaculture practices. Sixth: Investors' Commitments Controls 22 General commitments of the investor 22.1 The investor must carry out the licensed aquaculture project within the timetable approved in the final technical and economic feasibility study. 22.2 The investor must carry out the licensed aquaculture project in accordance with: 43 22.2.1 Technical and environmental standards, production methods, control, and practices are mentioned in the final technical and economic feasibility study. 22..2.2 Definitions and requirements stipulated in the license. 22.2.3 Any commitment, standard, and requirement stipulated in these relevant controls and other controls. 23. Compliance with general obligations 23.1 The competent authority may cancel the license if it is confirmed that the investor has failed to comply with the timetable approved in the final technical and economic feasibility study and has not started practicing the operational activities of the project after obtaining the operational license. 23.2 The competent authority may suspend, cancel or amend the license if it is confirmed that there has been a violation of any obligation, standard and requirement stipulated in these controls or the final technical and economic feasibility study. 23.3 The competent authority shall document the violation and send notice to the investor before suspending or canceling the license. 23.4 The competent authority shall examine any complaints submitted by the investor before suspending or canceling the license. 24. Keeping records 24.1 The investor must keep records of the information related to the aquaculture project, which includes the following: 24.1.1 Production records, which include the number of stored aquatic organisms as well as the number of aquaculture harvested, the quantities of consumed feed, the therapeutic chemicals, their use, the average weight, mortality rates, etc., for all production cycles. 24.1.2 Applicable environmental control standards. 44 24.1.3 Political and administrative operational procedures. 24.1.4 Use of antibiotics, chemical treatments, and vaccines. 24.2 The competent authority may, in accordance with these controls, issue a procedure concerning specific provisions for the keeping of records. 25. Duty to report The licensed investor must notify the competent authority immediately when any of the following cases occur with its project: 25.1 The occurrence of unusual mortality. 25.2 The emergence of an epidemic disease. 25.3 The entry of cultured aquaculture into natural habitats. 25.4 Any tidal phenomenon or natural disaster affecting the project. 26 The investor responsibility 26.1 The investor is responsible for any losses that occur due to: 26.1.1 Violation of the license, including incompatibility with environmental monitoring, biosecurity, and other controls. 26.1.2 Failure to inform the competent authority of any other reporting matters from these controls. 26.1.3 Negligence resulting from project operations. 26.2 The investor must send all records and documentation relating to the project to the competent authority upon request to do so under these controls. Seventh: Controls of commitment, monitoring, and reporting 27 Technical reports The investor must submit a periodic technical report that is consistent in its appearance and style with the requirements of the competent authority with regard to the following: 27.1 Progress in the construction work stages. 27.2 Progress in the operational, management, and production stages. 28. Supervision 45 28.1 The competent authority may visit the project site and any facilities connected thereto to follow up and monitor the implementation phases at any time. 28.2 The competent authority may carry out unannounced visits and periodic inspection work as it deems appropriate, without informing the investor. 29. Inspectors 29.1 The competent authority may select the aquaculture inspector to examine the matters related to the following: 29.1.1 Management of aquaculture activities including: 29.1.1.1 Technical Management for operating licensed aquaculture projects. 29.1.1.2 Aquaculture health and safety management, including normal or epidemic mortality, or discovering the occurrence of a new disease. 29.1.2 Commitment to these controls and licensing requirements. 29.2 The aquaculture inspector may enter the project facilities during working hours to inspect administrative and technical work measures. 29.3 It is prohibited for any person to obstruct the inspector from performing his duties under these controls. 30. Examinations and sample collection 30.1 The investor shall, upon the request of the aquaculture inspector, submit for examination any record or technical operating plan of the project. 30.2 The inspector may carry out the following: 30.2.1 Conduct any examination or investigation, if necessary, to determine the extent of the project's compliance with licensing requirements. 30.2.2 Request for inspecting and taking copies of the license, record, document, or any other documents, including electronic records or the required documents related to the operation of any of the facilities, equipment, machines, or transportation means in the project. 46 30.2.3 Request for testing aquaculture, chemicals, vaccines, or any other materials in the project. 30.2.4 Take samples of water, sediments, or living organisms from any basin, container, or box located anywhere on the project site. 30.2.5 Examine, photograph, or mark any part of the project facilities or anything found therein. 30.3 The inspector may open or authorize any person to open any container or box in the project and take samples from there in the manner specified by the inspector. 30.4 The inspector may prohibit the total or partial transfer of aquatic organisms in the project, treatment or disposal of them, their products, or any container or box. 30.5 The inspector may when there is any record or document saved on computer: 30.5.1 Access, check and verify the same and verify any used materials related to the record or document. 30.5.2 Ask any responsible or competent person to operate the computer and other devices to provide him with assistance as it requests. 30.6 The inspector may dispose of any sample obtained if it is no longer required. 30.7 The inspector may, upon entering the aquaculture projects, accompany other persons with him to complete the inspection work, if necessary. 31. Identifying the inspectors An inspector who exercises any of his powers delegated to him under these controls shall present his identification card upon request, which indicates his job identity as an inspector. 32. Privacy (Confidentiality) 32.1 Any official exercising his duties or responsibilities under these controls (including employees of the competent authority or inspectors) shall not be entitled to disclose information or any data of a special nature acquired by virtue of their powers, duties, and responsibilities to anyone who does not have such authority or exercises such tasks and responsibilities, unless officially authorized. 32.2 The following information is considered private (confidential) under these controls: 47 32.2.1 Any information or data of a commercial nature contained in the project records, reports, or documents. 32.2.2 Any information or data that may be approved from time to time. 32.3 According to these controls, it is permissible to: 32.3.1 Disclose private information to the competent authority. 32.3.2 The competent authority may disclose and publish private information related to the project. 32.3.3 The competent authority may use the private information to provide advice and guidance. Eighth: Controls of compulsory execution 33. Forced Execution Notices 33.1 The inspector may send a notice to the investor (forced execution notice) under this control if the investor violates or breaches or is expected to violate a licensing requirement. 33.2 The forced execution notice shall include the following: 33.2.1 Present the inspector’s vision mentioned in Paragraph (33. 1). 33.2.2 Determine the matters that constitute a breach or lead to a violation. 33.2.3 Determine the steps that must be taken to remedy the violation or to ensure that it does not occur and the period required for the same. 33.3 The steps of the forced execution notice are aimed at: 33.3.1 The operation of the aquaculture project compliant with any of the licensing requirements or with these controls. 33.3.2 Remedying the effects resulting from pollution or damage resulting from the violation. 34. Information on compliance with forced execution notices The investor to whom the forced execution notice was addressed must inform the inspector immediately of the extent of his commitment to implementing the notice requirements and the details of the steps it took to comply with those requirements. 35. Commitment to the notice 48 35.1 If the investor does not abide by the forced execution notice, the inspector may enter the project facilities and take steps that appear necessary to him either to ensure compliance with all the requirements mentioned in the notice or to remedy the effects of non-execution. 35.2 The inspector who enters the project facilities may accompany other persons, equipment, and means of transport that it deems necessary to complete the inspection work. 35.3 The inspector may take any measures to counter the investor’s failure to comply with the notice and its requirements. The competent authority may recover all costs of implementing these procedures as a debt owed by the investor. 36. Violations 36.1 The investor is considered a violator without an acceptable excuse, and the violation is proven against it in the following cases: 36.1.1 Operating the project without a license and failure to report the same. 36.1.2 Violation of construction and operational licensing requirements. 36.1.3 Failure to comply with the conditions or measures contained in the forced execution notice imposed on it. 36.1.4 Intended objection to the inspector's work or any person approved by the inspector in exercising his powers vested in him under these controls. 36.1.5 Providing any false information or reports to the competent authority, whether knowingly or negligently. 36.1.6 Intentional failure to provide any information material. 37. Sanctions 37.1 An investor who commits a violation under these controls shall pay the penalty, and if more than one violation is committed, a penalty shall be paid for each violation as follows: Violation 1st breach 2nd breach 3rd breach 49 1. Operating without license 10,000 riyals 20,000 riyals 30,000 riyals 2. Violation of licensing requirements 10,000 riyals 20,000 riyals 30,000 riyals 3-. Other violations 5000 riyals 10,000 riyals 20,000 riyals 37.2 The competent authority may approve whatever penalties it deems appropriate for the violating projects according to the type of violation. 37.3 The competent authority may suspend, cancel, or amend the project license if it is ascertained that: 37.3.1 Failure of the investor to comply with the licensing requirements and these controls. 37.3.2 Carrying out the same is in the public interest. 37.4 The competent authority may document the violation and send notice to the investor to suspend, cancel, or amend the license. The notice shall include the following: 37.4.1 Type and nature of the violation. 37.4.2 The competent authority must consider, prior to the implementation of the penalty, any appeals made by the investor. 50 Kingdom of Saudi Arabia Ministry of Agriculture Deputy-Ministry for Fisheries Affairs Fourth: Procedures for Issuing Licenses for Inland Waters Aquaculture Projects 51 Fish Farm Management (1435 HD – 2014 AD) 52 Procedures for Issuing Licenses for Inland Water Aquaculture Projects Introduction These measures shall aim to approve mechanisms for the issuance of licenses for inland water aquaculture projects and to monitor their activities 1- Scope: These measures shall include the field of cultivating, caring, and harvesting aquatic biota in the interior, rural or desert areas, and this includes ponds, reservoirs, waterways, and other fish farming methods, whether open or enclosed. 2- Definitions The definitions contained in the aquaculture controls shall apply to these measures, in addition to the following definitions: • Inland Water: water that contains concentrations of dissolved salts less than a gram of salt per liter (2 parts per thousand) • Potable Water: Water containing concentrations of dissolved salts at a rate ranging between 2 to 30 grams per liter (2 to 30 parts per thousand). • Broodstock: A group of mature individuals used in aquaculture for reproduction purposes. They are kept in captivity as a source for larvae and are usually kept in ponds or tanks where environmental conditions such as temperature and pH are controlled. • Endemic Strain: A strain that arose naturally in a local area or environment. • Imported Strains: They are the non-endemic species. • Fry: Young aquatic life stages that extend into pre-sexual maturity. • Water Requirements: the quantity and type of water suitable for the proposed project. • Impact of water use: water use reflection in operational processes on its quantitative and qualitative quality in the project area. • Open Aquaculture System: It is the system that depends on its operation on open ponds in which the water is partially changed according to the specifications and its quality. 53 Closed Aquaculture System: It is a system that depends on its operation on the closed management of water by way of recycling after treating it mechanically and biologically. 3- License Issuance Stages 3.1 First stage: Submitting the license application The license submission stage is where the official application form prepared by the competent authority is filled out, which includes: a- General information about the project Project Commercial Name: .............................................. ................................ Project Address: Region ........................................... City............................. Property Type: ......................................................................................................................... Owned  a copy of the legal instrument shall be attached with the original. Rented  attaches a 10-year lease contract authenticated by a real estate office. Distributed by the Ministry  attaches a copy of the distribution decision with the original. Determines the required site and associated with known landmarks in a sketch and determines its coordinates Activity (Project Activities): ............................................ .............. Legal capacity: Individual Foundation Company Other b. Area allocated to the project: .............................................. ........... Hectare. c- Project system Open system  closed system  d- Project Financing Private capital  A loan from the Agricultural Development Fund  Other sources  Specify................................................. .................................................. .................................................. .................................................. ............................... 3.2 The second stage: the preliminary technical and economic feasibility study They generally include the following: 54 ✓ Technical Measures Plans: include cultured species, site, facilities, production systems, biosecurity, production rates, sources and quantities of feed, and environmental considerations. ✓ Economic Competency Requirements: include estimating costs, required financing, its sources, and the financial condition of the investor. ✓ Technical Competency Requirements: include the proposed administrative and technical team for the project and a statement of their experience in aquaculture and the investor's experience in this type of project. 1.2.3 Detailed Proposals for a Preliminary Technical and Economic Feasibility Study 1.1.2.3 Cultured Strains • Strain Name: Determine the common names in Arabic and English and the scientific name of the proposed breeding species and its origin 3.2.1.2 Site and facilities a) Submit the site of the requested land area appropriately to allow its inclusion in the Ministry's geographic information system. b) Determine the area in hectares for the following facilities: • Hatchery, care, and nursery facilities • Breeding facilities (fattening) • Offices, workshops, equipment, and residential areas. • The total area that shall be used for the project. • A diagram of the productive and non-productive areas. 3.2.1.3 Production Systems Submit a description of the following production elements: a) Broodstock Care b) Hatchery and Nursery Pond c) Breeding and Fattening 3.2.1.4 Water Supplies (a) Description of the water source 55 (b) Determine the amount and volume of water used for each production stage (c) Describe any water recycling process when using a closed system, and describe approximate daily water change rates for an open system. (d) Determine the water salinity in the project area 3.2.1.5 Production schedule and feed consumption a) Evaluating the project's expected productivity for the first five years of production b) Evaluation of feed consumption rates 3.2.1.6 Environmental Considerations for Cultured Strains a) Submit technical information on cultured breeds b) Environmental description of project water management 3.2.2 Economic Requirements a) Estimating Cost and Cash Flow b) Self-Financing Capability. 3.3.2 Technical Requirements a) The proposed management team for the project b) The applicant's experience 4.2.3 Personal interview and approval of the decision committee 3.3 The Third Stage: Water requirements and the impact of water use It aims to assess water requirements and assess the impact of water use to ensure water availability for the project. The competent authority is in coordination with the Ministry of Water and Electricity to prepare a technical report on the number of wells And its productivity in the agricultural project. The impact evaluation method for water usage involves the following elements: 3.3.1 Description of the Project site and Environment a) The physical characteristics of the site environment shall include a topographic map of the site extending one kilometer from the proposed site in all directions b) Details of the soil type, including the following: 56 • A natural description of the land and any other natural features such as wadis, gravel, or sand cover. • Biological parameters, such as the nature of vegetation. • Existing crops, industry, residential areas, and any other uses of the site. 3.3.2 Identifying potential impacts Coordination with the relevant authorities and documenting the expected positive or negative impacts of operating the project, including those: a) Water use: estimation of water requirements for production b) The quality of the wastewater to ensure its conformity with the environmental standards c) Interactions with internal agricultural communities. 3.3.3 Monitoring Monitor the periodic water requirements of the project in the long term and control its quality 3.4 Fourth stage: The final technical and economic feasibility study Submitting the final technical and economic feasibility study to the competent authority after accepting the project's water requirements assessment report by the relevant authority based on which the production capacity of the fish project is estimated. 3.4.2 The final technical and economic feasibility study of the project aims to submit the competent authority with the following: • The necessary details about the technical and economic aspects of the proposed project • The necessary details about the technical and economic capabilities of the investor • A schedule for the construction implementation plan. • Guarantees of the project compliance with the requirements governing the issuance of licenses 3.4.3 The Final Technical and economic feasibility study of the project shall Include the following elements: 3.4.3.1 Technical and economic plan (a) Cultured Strains 57 • Strain Name: Determination of common vernacular names in Arabic and English and the scientific name of the proposed species. • Broodstock Origin: This shall be determined for both projects that have hatcheries as well as those that purchase small-scale aquatic biota from external sources. (b) Site Spaces and Facilities 1- Submitting the coordinates of the site of the required land area appropriately to allow its inclusion in the Ministry's geographic information system. 2- Determining the area in hectares for the following criteria: • Broodstock production facilities, hatchery, and nursery • Breeding facilities (fattening) • Offices, workshops, equipment, and other residential areas • The total area that shall be used for the project 3- Submitting standard detailed drawings showing the proposed farm's production areas, the water drainage system, and planning the land area. (c) Production facilities 1- Broodstock care facilities • A detailed and quantitative description of broodstock care facilities, accompanied by standard diagrams of those facilities, including water supplies and broodstock ’subsistence systems. • A detailed description of the biosecurity standards that shall be applied for broodstock care. 2- Hatchery and nursery • A detailed and quantitative description of the hatchery and nursery facilities, attached with standard schematic drawings of these facilities, including water supplies, larvae, and fingerlings nests. • A detailed description of the biosecurity standards that shall be applied for hatchery and nursery care • If young aquatic organisms are secured from external sources, the site (state and governorate) of the hatchery or nursery or both shall be mentioned, and it is suggested to buy from them. 3- Breeding (Fattening) 58 • A detailed and quantitative description of the water supply is attached with standard schematic drawings of these facilities, including water entry points, water supply channels, and pump equipment. • A detailed and quantitative description of the areas used for breeding and subsistence attached with it shall be standard schematic drawings of those facilities, including the number, areas, and constructions (such as unlined sand ponds, cement tanks, fiberglass, ... etc.) • A detailed and quantitative description of the water drainage system from the project attached with standard schematic drawings of those facilities, including water pumping systems and any treatments or sedimentation to control the quality of the outgoing water and its points of discharge. • A detailed description of the biosecurity standards that shall be implemented to take care of the breeding facilities (fattening) • Average storage density per cubic meter (kg / m3) • Weight of cultured organism at harvest (grams) d) Production schedule and feed consumption 1- Determine the following information on the proposed timelines for the project: The start and end dates of establishing the project (year / month) Date of preliminary storage of the first breeding (fattening) at the commercial level (year / month) Date of the first harvest at the commercial level (year / month) 2- Submitting the proposed production schedule for the project for the first five years of production as follows: Strains Annual Production (Tons) Year 1 Year 2 Year 3 Year 4 Year 5 Strain 1 Strain 2 Strain 3 59 3- Feed consumption rates • Determining the average expected feed conversion factor during the growing (fattening) period • Submit a report on the total quantity of feed expected to be consumed during the first five production years on an annual basis • Determine the type and source of feed (e) Expectations of the cost and total income 1- Total Costs • Categorizing the main items that include the quantity and a brief description of all production inputs and outputs • Table of the total expenditures costs during the first five years of the project. 2- Operating Costs • Categorizing the items that include the quantity and a brief description of all the elements of the variable costs • Table of variable costs during the first five years of the project 3- Total Income • Define and brief description of total income • Table of total incomes during the first five years of the project • Financial flow projections on an annual basis for the first five years after the grant of the construction license • Profit and Loss: Profit and Loss Analysis for the first five years of the project. 2.3.4.3 Environmental Management Plan The investor shall make an environmental management plan based on an assessment of water needs. This plan consists of the following elements: a) Scope, objectives, and applicable criteria. b) A summary of the processes related to environmental management, including a quantitative assessment of environmental risks and the environmental management methods used to prevent or reduce those risks. 60 c) An environmental monitoring plan that includes all facilities and operations within the project: 1- The site of all control and sampling points 2 - A detailed list of the standards to be measured, the intended target of measuring those standards, and the methodology for methods of analysis 3- The system for taking samples with regard to the timing, number, and frequency of its withdrawal. 3.3.4.3 Executive Plan This plan shall be based on the evaluation of both the technical, economic, and the environmental management plan, and it consists of the following elements a) A timetable for the construction of the proposed facilities, including the construction of all the main facilities mentioned in the study b) A timetable for operating the main facilities mentioned in the study on an annual basis for a period of (5) years c) A detailed scale map showing the site and size of all major facilities mentioned in the study. 4.3.4.3 The Financing Plan from the Agricultural Development Fund The competent authority shall send a copy of the approved technical and economic feasibility study and other required documents to the Agricultural Development Fund, where the project requests funding. 5.3 Fifth Stage: Issuance of Licenses 5.3.1 Issuing the construction license for the project according to the technical and economic feasibility study and stipulating in it the requirements for the construction phase based on the opinions and recommendations of the competent authority. 5.3.2 Issuing the construction license for the project (for a period of thirty years, renewed for other similar periods) after reviewing the competent authority and ensuring the completion of the construction of all project facilities in accordance with the requirements contained in the construction license issued for the project 5.3.3 The investor shall be obliged to the production capacity stated in the technical and economic feasibility study. 5.3.4 If a construction license has been issued for the project and no construction work has been carried out during the time specified in the final technical and economic feasibility study, the 61 competent authority shall warn the investor to complete the construction operation of the project in accordance with the plans set out in the study. 5.5.3 If the project has been licensed for a specific production capacity and the investor has not obliged to it, the competent authority shall warn him to complete the target production capacity stipulated in the technical and economic feasibility study within a specified period of time, and in case the investor shall not comply, the license shall be suspended or canceled according to what the competent authority deems appropriate. 5.3.6 If the project has been issued an operating license and no operational works have been carried out within two years of the issuance of the license, the competent authority shall warn the investor to complete the operational operations in the project according to the target production capacity stipulated in the technical and economic feasibility study, if the investor does not comply, the license granted to the project shall be canceled. Kingdom of Saudi Arabia Ministry of Environment, Water, and Agriculture Deputy Ministry for Fisheries Affairs Fifth: Procedures for Issuing Licenses for Coastal Aquaculture Projects 62 Fish Farm Department (1435 AH - 2014 AD) Fifth: Procedures for Issuing Licenses for Coastal Aquaculture Projects Introduction These procedures aim to approve licensing mechanisms for coastal aquaculture projects and to monitor their activities. The scope of these procedures includes the management of the aquaculture activities of marine life in coastal and near-sea areas that use seawater as an environment for breeding. 63 64 1. Definitions The definitions contained in the Aquaculture Regulations shall apply to these procedures, in addition to the following definitions: • The Competent uthority: The Fish Farms Department, which is considered under the responsibility of the Ministry's Agency for Fisheries Affairs at the Ministry of Environment, Water, and Agriculture and is responsible for all aquaculture activities in the Kingdom. • Aquaculture: The production of aquatic organisms such as fish, crustaceans, shellfish, algae, and aquatic weeds, etc., under captivity conditions and the control of breeding factors. • Carrying capacity of water: The ability of a certain water area to maintain the environmental balance without any negative impact on the natural, biological, and chemical characteristics of the water. • Absorptive capacity of water: The carrying capacity of water refers to the biomass that can be carried in a given water area without deterioration in its specifications. • Broodstock: A group of mature individuals used in aquaculture for reproductive purposes and are kept in captivity as a source of larvae. It is usually kept in ponds or tanks where environmental conditions such as temperature, lighting, and pH are controlled. • Juveniles: The younger ages of aquatic organisms extend into pre sexual maturity. • Nursery: The maintenance of aquatic larvae in a certain volume of water until they grow and reach the fingerling stage • Fence: A Pen installed on the coast with the seafloor base, and its sides and cover are made of nets, and it is used in aquaculture on the coast. 65 • Endemic strain: A strain that arose naturally in a protected area or environment. • Incoming strains: The non-endemic species in the local aquatic environment. • Intertidal zone: The coastal area above the water surface at the lowest tidal level and is below the water surface at the highest tide level. • permit of testing the site: An official permit issued by the competent authority to start the project site tests and analyzes. • The coastal area: The area where the land meets the marine waters, and therefore it is constantly exposed to changes due to sculpture by water. • Environmental and Social Impact Assessment: The process of identifying, anticipating, and assessing natural, biological, social, and other impacts related to development before making decisions. 66 2. The stages of issuing licenses 2.1. First stage: Submitting the license application The stage of submitting the license application in which the official application form prepared by the competent authority is filled out, which includes: C - General information about the project: Project Trade Name: .................................................................................................... Project address: Area: ........................................ City: ............................................... Property Type: ............................................................................................................. Owned A copy of the legal deed shall be attached to the original Rented Attach a notarized 10-year lease contract Distributed by the Ministry A copy of the distribution decision shall be attached with the original Required by the Ministry Determining the desired location and is required, as well as connecting it to known landmarks in a sketch and determines its coordinates Project activity(s): ..................................................................................................... Legal capacity: Individual Company Institution Other D- The area allocated to the project: ............................................................... Hectare C – Project System: Open System: Ponds Tanks Concrete ponds Fences Close System: D- Project financing Private capital A loan from the Agricultural Development Fund Other sources Note: ……................................................................................................................... 67 ..................................................................................................................................... 2.2 Second Stage: a preliminary technical and economic feasibility study Collectively it includes the following: ✓ Technical measures Plans: include cultured species, location, facilities, production systems, biosecurity, production rates, sources and quantities of feed, and environmental considerations. ✓ Economic Competency Requirements: include estimating costs, required financing, its sources, and the investor's financial condition. ✓ Technical Competency Requirements: include the proposed administrative and technical team for the project and a statement of their experiences in aquaculture and the investor's experience in this type of project. 2.2.1 The detailed proposals for a preliminary technical and economic feasibility study 2.2.1.1 The cultured strain • The name and origin of the breed. 2.2.1.2 Site and marine and onshore facilities • Provide the coordinates of the required marine location. • Indication of the quantitative marine area (in hectares). • A sketch showing the productive areas of the proposed project. 68 2.2.1.3 Education system Description of production systems: 2.2.1.4 Production and feed consumption schedule A) An assessment of the project's expected productivity for the first five years of production. B) Evaluation of feed consumption rates. C) Description of other uses in the project area as follows: 1. Proximity to shipping lines and owned or leased areas. 2. Proximity to the marine fishery. 3. Proximity to Natural Reserves areas. 4. Proximity to human settlements and activities. 5. Proximity to any major infrastructure such as roads, industrial installations, and military installations. 2.2.2 Economic requirements 2.2.2.1 Estimate cost and cash flow. 2.2.2.2 Self-financing capacity. 2.2.3 Technical Requirements 2.2.3.1 Proposed Management Team. 2.2.3.2 The applicant's experience. 2.2.4 Personal interview and approval of the decision committee. 2.2.5 Committee of Five approval • After approval of the initial technical and economic feasibility study of the project and after the decision committee's approval, the competent authority addresses the Committee of Five to obtain its approval for the backfill, reclamation, and dredging works of the proposed project. • In the event of the approval of the Committee of Five, the competent authority shall issue an initial approval for a year to conduct site tests for the project. 2.3 Third Stage: issuance of initial approval for site tests 69 The competent authority shall, after approval of the initial technical and economic feasibility study, issue the initial approval for the site tests to the investor in order to allow the investor to carry out the required tests to prepare the studies and analyzes necessary for the technical and environmental assessment of the site. 2.4 Fourth stage: environmental feasibility study The investor submits an environmental feasibility study to the General Authority of Meteorology and Environmental Protection to ensure the environmental viability of the project and ensure that no negative environmental impacts occur in the project area and applying appropriate procedures and drivers in accordance with the standard environmental standards issued in this regard. 2.5 Fifth Stage: The Final Technical and Economic Feasibility Study The final technical and economic feasibility study shall be submitted after the General Authority accepts the environmental study for Meteorology and Environmental Protection. (A) Objectives of the final technical and economic feasibility study of the project: 1. Provide the competent authority with all the details of the technical and economic feasibility of the proposed project to be able to issue the construction license for the project or not. 2. Providing the competent authority with sufficient details on the technical and economic capabilities of the investor to be able to issue the construction license for the project or not. 3. Provide the relevant authorities with sufficient details about the proposed project to enable them to agree to the issuance of a construction license or not. 4. Provide the competent authority with a clear and time-bound implementation plan for construction. 5. Determine licensing conditions and application procedures to ensure that the project is consistent with the general principles of long-term development of the aquaculture industry within the frameworks of sustainable development and responsible aquaculture in the Kingdom of Saudi Arabia. The final technical and economic feasibility study includes the following elements: 70 2.5.1 Technical and economic plan 2.5.1.1 Species Proposed for Aquaculture • Breed name: Determine the common names in Arabic and English and the scientific name of the proposed species. • Original breeder of broodstock: This shall be specified for both projects that have hatcheries as well as projects that purchase young aquaculture from external sources. 2.5.1.2 Assessment of tidal risk The investor shall provide the competent authority with an assessment of the tidal risks to the construction, infrastructure, and stocks of aquatic organisms, manpower, and livelihoods in the areas surrounding the proposed project. Accordingly, the investor shall: A) Evaluates information about all watercourses (permanent, seasonal, and intermittent), which pass through or at a distance of 5 km from the perimeter of the farm, and this information should include: • Information on minimum, average, and maximum water flow rates, including frequency and time patterns. • Records of any major tidal accidents. • Provide an assessment of the volume of water flows in each farm area, their frequency, and the structural precautions taken to counteract the potential tidal waves. B) Provide an assessment of the potential impacts of the following tidal waves on the project infrastructure. C) Submit copies of any official documents of the emergency plan in cases of tidal waves and the standard procedures followed in similar tidal events. 2.5.1.3 Projected costs and revenues A) The investment costs of capital • Description of all items of capital costs • Capital costs during the first five years of the project 71 B) Operating costs • Description of all items of operational costs • Recurring costs over the first five years of the project C) Revenue • Identification and brief description of all sources of income • Revenue scheduling over the first five years of the project • Projections of annual cash flow during the first five years following the granting of the license D) Profitability: profit analysis for the first five years of a project. 2.5.1.4 The Agricultural Development Fund financing plan The competent authority may submit to the Agricultural Development Fund if the investor requests obtaining financing and attach a copy of the approved technical and economic feasibility study and other required documents. 2.5.2 Implementation plan The investor shall develop an implementation plan based on both the technical and economic plan and the environmental management plan, and it shall consist of the following elements: A) The schedule for the construction of the proposed facility, including construction milestones for all major facilities. B) The schedule of annual production targets of all major facilities that have been described for a period of 10 years from the construction completion date. C) A detailed scale map showing the location and size of all the major facilities described. D) The schedule for establishing and operating any other licensed project facilities. 2.6 Sixth stage: Issuing licenses 2.6.1 Issuing the construction license for the project in accordance with the technical and economic feasibility study and stipulating in it the requirements for the construction phase of the project based on the opinions and recommendations of the competent authority. 2.6.2 Issuance of the project's operating license for a period of thirty years, renewed for other similar periods after reviewing the competent authority and ensuring that all project facilities have been 72 completed in accordance with the requirements contained in the construction license issued for the project. 2.6.3 The investor shall abide by the production capacity stipulated in the technical and economic feasibility study. 2.6.4 If the project has been issued a construction license and no construction works have been carried out within the timeline specified in the final technical and economic feasibility study, the competent authority shall warn the investor to complete the construction operations in the project in accordance with the plans outlined in practice in the study. If the investor does not comply, the construction license granted to the project shall be canceled. 2.6.5 If the project has been licensed for a specific production capacity and the investor has not adhered to it, the competent authority shall warn him to complete the target production capacity stipulated in the technical and economic feasibility study within a specified period of time, and in the case of non-compliance by the investor, the license shall be suspended or canceled according to what the competent authority finds suitable. 2.6.6 If the project has been issued an operating license and no operational works have been implemented within the timetable specified by the final technical and economic feasibility study, the competent authority shall warn the investor to complete the operational operations in the project according to the target production capacity stipulated in the study, and in case of non-compliance by the investor, the license granted to the project shall be canceled. Kingdom of Saudi Arabia 73 Ministry of Environment Water and Agriculture Deputy Ministry for Fisheries Affairs Sixth: Procedures for Issuing Licenses for Marine Aquaculture Projects in the Floating Cages Fish Farms Department (1435 HD – 2014 AD) 74 Procedures for Issuing Licenses for Marine Aquaculture Projects in the Floating Cages Introduction These procedures aim to approve the licensing mechanisms for marine aquaculture projects in the floating cages and monitor their activities. 75 1. Definitions The definitions contained in the Aquaculture Regulations shall apply to these procedures, in addition to the following definitions: Competent Authority: The Fish Farms Department working under the responsibility of the Deputy Ministry for Fisheries Affairs, at the Ministry of Environment Water and Agriculture, and is responsible for all aquaculture activities in Saudi Arabia. Aquaculture: The production of aquatic organisms such as fish, crustaceans, oyster, algae, and aquatic plants, etc., under the conditions of captivity and control of culture factors. Carrying Capacity of Water The ability of a given water area to maintain the environmental balance without any negative impact on the natural, biological, and chemical specifications of the water. Absorptive Capacity of Water The biomass that can be carried in a given water area without deterioration in its specifications. Floating Cage: A productive aquaculture system made of a net floating structure, anchors, and buoys in a circular or square shape to carry a large number of fishes and can be installed in the marine or any water area of adequate depth. Marine Aquaculture (close to the coast): The aquaculture in marine water close to the coast, either in fences or floating cages. 76 Open Marine Aquaculture (away from the coast): An open marine aquaculture in cages offshore, placed in deep waters. Broodstock A group of mature individuals of standard specification. Settlement Breed: A breed that originated naturally in a local area or environment. Incoming Breeds: A species that is not settled in the local aquatic environment. Resting Period: The process by which the sites of floating cages used in aquaculture are left every two to three years in order to improve the biological and chemical water condition. Nursery: The maintenance of aquatic organisms’ larvae in a certain water volume until they grow and reach the fingerling stage. Juveniles: The young ages of the aquatic organisms extend into pre-sexual maturity. Intertidal Area: The coastal area that is above the water surface at the lowest tidal level and is below the water surface at the highest tide level. Site Test Permit: An official permit issued by the competent authority to start the project site tests and analysis. 77 2. Stages of licensing 2.1 First stage: Submitting the license application The stage of submitting the license application in which the official application form prepared by the competent authority is filled out, which includes: c- General information about the project: Project Commercial Name: …………………………………………………………………………………………………………………………………… Project title: Region ……………………………………………………………………. City …………………………………………………………………… Project Activity (s): ………………………………………………………………………………………………………………………………………………… Legal Capacity: Individual  Company  Establishment  Others  d- Project coordinates: East: North: The sketch showing the boundaries of the proposed project, the coast, and the area of the ground services. e- Area allocated for the project: …………………………………………………………………………………………………………. Dunam f- Floating Cages Information: Number of cages: Cage dimensions: Diameter: Depth: g- Project Funding Private capital  A loan from the Agricultural Development Fund  Other Sources  Specify............................................................................................................................................................................... ............................................................................................................................................................................................ ................ 78 2.2 Second Stage: A preliminary technical and economic feasibility study It collectively includes the following: ✓ Technical Measures Plans: include cultured species, location, facilities, production systems, biosecurity, production rates, sources and quantities of feed, and environmental considerations. ✓ Economic Competency Requirements: include estimating costs, required funding and its sources, and the investor's financial condition. ✓ Technical Competency Requirements: It includes the proposed administrative and technical team for the project, a statement of their experiences in aquaculture, and the investor's experience in this type of project. 2.2.1 Detailed proposals for a preliminary technical and economic feasibility study 2.2.1.1 Aquaculture train • Name and origin of the strain. 2.2.1.2 Offshore and onshore sites and facilities • Provide the coordinates of the required marine site. • Indication of the total marine area (in hectares). • A sketch showing the productive areas of the proposed project. 2.2.1.3 Culture Systems Description of production systems: 2.2.1.4 Production Schedule and Feed Consumption a) Assessing the project's expected productivity for the first five years of production. b) Evaluating the feed consumption rates. c) Describing other uses in the project area as follows: 1. Proximity to marine lanes and areas owned or leased. 2. Proximity to marine fishing areas. 3. Proximity to nature reserve areas. 4. Proximity to human settlements and activities. 5. Proximity to any major infrastructure such as roads, industrial facilities, and military installations. 79 2.2.2 Economic requirements 1.2.2.2 Estimate cost and cash flow. 3.2.2.2 Self-financing capacity. 3.2.2 Technical requirements 1.3.2.2 Proposed Management Team. 2.3.2.2 Applicant's Experience. 3.2 Third stage: Personal interview and approval of the decision committee The qualified authority requests that the investor make a visual presentation describing the content of the preliminary technical and economic feasibility study of the project to the technical committee established by it and then submit the results to the decision committee for approval. 2.4 Fourth stage: Committee of Five approval The competent authority addresses the Committee of Five to study the landfill and dredging works required for the project for approval according to the relevant regulations. 2.5 Fifth stage: Issuance of an initial approval for the site rests The competent authority shall, after approval of the preliminary technical and economic feasibility study, issue the initial approval of the development site tests in order to allow the investor to carry out the necessary tests to prepare the required studies and analyzes for the technical and environmental assessment of the site. 2.6 Sixth stage: Environmental feasibility study: The investor shall submit the environmental feasibility study to the General Authority for Meteorology and Environmental Protection to ensure the environmental feasibility of the project and to ensure that there are no adverse environmental effects in the project region and to ensure that suitable processes and means are implemented in compliance with the standard environmental measures. 2.7 Seventh stage: Final technical and economic feasibility study The final technical and economic feasibility study shall be submitted after accepting the environmental study by the General Authority of Meteorology and Environmental Protection. (b) The aims of the final technical and economic feasibility study of the project: 6. To provide the competent authority with all technical and economic details of the proposed project to be able to issue the construction license for the project. 80 7. To provide the competent authority with sufficient details about the technical and economic potential of the investor to be able to issue the construction license for the project. 8. To provide the relative authorities with enough details about the proposed project to be able to issue the construction license for the project. 9. To provide the competent authority with a clear and time-bound implementation plan for construction. 10. To determine licensing conditions and their implementation procedures to ensure that the project is consistent with the general principles of long-term development of the aquaculture industry, frameworks for sustainable development, and responsible aquaculture in the Kingdom of Saudi Arabia. (c) The final technical and economic feasibility study of the project shall be modified based on the following: • Recommendations issued by the competent authority in its evaluation of technical and economic proposals. • Recommendations of the General Authority of Meteorology and Environmental Protection regarding the environmental feasibility study. The Final Technical and Economic Feasibility Study Include the Following Elements: 2.7.1 Technical and economic plan 2.7.1.1 Species proposed for strains • Strain name: Determine the common names in Arabic and English and the scientific name of the proposed species for strains • Origin of broodstock: This shall be specified for both projects that have hatcheries as well as projects that purchase young aquaculture from external sources. 2.7.1.2 Location of marine and onshore facilities a) Provide the coordinates of the required marine site in an appropriate form to access the Ministry's geographical information system. b) Referring to the total marine area (hectares) in terms of: 1. The Productive Area: in which the production units and cultivable areas shall be located. 81 a. Total marine area c) Provide a depth map of the proposed site and the minimum depth of productive areas (in meters) d) Details of the Proposed Inland Site, Including: 1. A list of the site and a brief description of all onshore facilities, including offices, warehouses, laboratories, housing, workshops, water resources, it's treatment, power production, and distribution. 2. A list of the site and a brief description of the water facilities, including all support vessels, barges, floating fodder stores, distribution facilities, and anchors. e) Submit detailed drawings at a scale indicating the production areas of the proposed project, the maritime boundaries, the coast, and the land site planning, including all the facilities mentioned above in addition to the roads and other means of communication. 2.7.1.3 Breeding systems This section concerns marine breeding systems only. With regard to land-based facilities (for example, larval production, hatchery, and care), the coastal marine aquaculture projects protocol can be used. a) Description of Production Systems 1. Description of the production units' type, such as floating cages, enclosures, etc. 2. Description of the number, sizes, and categories of these units (surface dimensions and depth of nets in meters) and the total surface area. If these units are to be installed in stages, it is necessary to describe their number, dimensions, and total surface area in each stage, taking into account the details of the schedule. 3. Description of the system for connecting production units, anchors, cables, and floats cubic meter (kg / m3) 4. Reference to the initially proposed storage density in kilograms per cubic meter (kg / m3) 5. Average weight of fish at harvest (grams) 6. Description of the mechanisms and practices used to ensure the stock's inability to enter the surrounding natural environment, and if this occurs, the necessary measures shall be taken to address it. b) The Reducing Risks Method and Emergency Planning 1. Description of the mechanisms and practices that allow facilities to withstand harsh climatic conditions 82 2. Description of the mechanisms and practices used to prevent stock loss 3. Description of the emergency plans that shall be implemented in the event of damage to a facility (for example, a ship collision or bad weather) that leads to a loss of stock to the external environment. 2.7.1.4 Schedule of production and use of feed a) Define the following information on the project schedule. 1. Starting and ending dates of establishing the project (Month / Year) 2. Date of the first production after first storage (Month / Year) 3. Date of the first commercial harvest (Month / Year) b) Submitting the schedule for the expected production of the project for the first five years as follows: Cultured Species Annual Production (Tons) First Year Second Year Third Year Fourth Year Fifth Year Species 1 Species 2 Species 3 e) Feed Utilization and Consumption 1. Renewal of the expected average food conversion factor over a training period 2. Submitting an estimate of the total feed used annually during the first five years of production 3. Referring to the type and source of the feed, with the use of chemical analysis terms for the feed (Dry matter, crude protein, crude fat, ash-free extract) 4. Reference to how the feed shall be distributed to • Production Area • Production Units 2.7.1.5 Environmental, social and economic considerations a) Detailed information shall be provided on the following environmental risks associated with the use of cultured strains: 1. Possible cross-breeding of cultured strains that shall penetrate natural habitats with native species 83 2. The organisms that shall enter the natural environment compete with the local species for place, food, and other resources 3. Risks of Transmission of Pathogens from Cultured Aquatic Organisms to Endemic Local Species b) A detailed description of the environmental conditions in the proposed site for the project along with a 1-kilometer extension in the vicinity of the project, including the land spaces and areas of coastal highlands and depressions such as the swamp areas, valleys, lakes, bays and open seas with support with maps and plans as follows: 1. Description of the land, seabed, and topography in terms of soil type 2. Provide a map of the proposed site showing the height of the land and the tides' height. 3. Reference to any major facilities in the land and marine areas, including any residential gatherings, agricultural areas, waterways, parents, mangroves, coral reefs, and seaweeds. 4. Description of the speed, trends, and its seasonal changes of ocean currents 5. Description of information on wind speed, direction, and its seasonal changes 6. Description of the water quality in the area, in terms of temperature, salinity, pH, dissolved oxygen, and levels of organic elements 7. Description of the severe general weather phenomena in the area and their probability m 8. Description of medicines and other water channels located within 1 km of the project perimeter, including information on historical events of torrents and their risks. c) Detailed description of other uses in the project area is as follows: 1. Proximity to sea-lanes and areas owned or leased. 2. Proximity to the fishing grounds. 3. Proximity to natural protected areas. 4. Proximity to human settlements and marine activities 5. Proximity to any infrastructure such as roads, industrial facilities, and military facilities. 2.7.1.6 Assessment of tidal risk The investor shall provide the competent authority with an assessment of the tidal risks to the construction, infrastructure, and stocks of aquatic organisms, manpower, and livelihoods in the areas surrounding the proposed project. Accordingly, the investor shall: 84 Evaluate information about all watercourses (permanent, seasonal, and intermittent), which pass through or at a distance of 5 km from the perimeter of the farm, and this information should include: • Information on minimum, average, and maximum water flow rates, including frequency and time patterns. • Records of any major tidal accidents. • Provide an assessment of the volume of water flows in each farm area, their frequency, and the structural precautions taken to counteract the potential tidal waves. b) Provide an assessment of the potential impacts of the following tidal waves on the project infrastructure. c) Submit copies of any official documents of the emergency plan in cases of tidal waves and the standard procedures followed in similar tidal events. 2.7.1.7 Expected costs and revenues a) The investment costs of capital • Description of all items of capital costs • Capital costs during the first five years of the project b) Operating Costs • Description of all items of operational costs • Recurring costs over the first five years of the project c) Revenue • Identification and brief description of all sources of income • Revenue scheduling over the first five years of the project • Projections of annual cash flow during the first five years following the granting of the license d) Profit and Loss: profit and loss analysis for the first five years of the project. 2.7.1..8 The Agricultural Development Fund Financing Plan The competent authority may submit a copy of the approved technical and economic feasibility study and other necessary documents to the Agricultural Development Fund if the investor requests funding. 2.7.2 Implementation plan 85 The investor shall develop an implementation plan based on both the technical and economic plan and the environmental management plan, and it shall consist of the following elements: a) The schedule for constructing the proposed facility, including construction milestones for all major facilities. b) The schedule of annual production targets of all major facilities that have been described for a period of 10 years from the date of completion of construction. c) A detailed scale map showing the location and size of all the major facilities described. d) The schedule for establishing and operating any other licensed project facilities. 8.2 Eighth stage: Issuing licenses 2.8.1 Issuing a construction license for the project in compliance with the technical and economic feasibility study and setting out the specifications for the construction phase of the project on the basis of the opinions and recommendations of the competent authority. 2.8.2 Issuance of an operating license for the project for a period of thirty years, renewed for similar periods after inspection by the competent authority and ensuring that all project facilities have been completed in compliance with the provisions of the construction license issued for the project. 2.8.3 If a construction license has been given and the construction activities are not completed within the period stated in the final technical and economic feasibility report, the competent authority shall warn the investor to complete the construction operations of the project in compliance with the plans set out in practice in the study. If the investor fails to comply, the construction license granted to the project shall be canceled. 2.8.4 If the project has been licensed for a specific production capacity and the investor has not obliged to it, the competent authority shall warn him to complete the target production capacity stipulated in the technical and economic feasibility study within a specified period of time, and in the case of non-compliance by the investor, the license shall be suspended or canceled according to what the competent authority finds suitable. 2.8.5 If the project has been issued an operating license and no operational works have been carried out within the schedule specified by the final technical and economic feasibility study, the competent authority shall warn the investor to complete the operational operations in the project according to the 86 target production capacity stipulated in the study, and in case of non-compliance by the investor, the license granted to the project shall be canceled. 2.8.6 The investor shall be obliged to the production capacity stipulated in the technical and economic feasibility study. Kingdom of Saudi Arabia Ministry of Agriculture Deputy-Ministry for Fisheries Affairs 87 Seventh: Application Form and Terms of obtaining Aquaculture Projects Licenses Fish Farming Department (2014 AD – 1435 AH) 88 Application Form of Obtaining Aquaculture Projects Licenses Investor: Individuals □ Companies □ Foreigner □ Other □ Data to be filled in in a clear handwriting Investor name: ……………………………………………………………………………………………………………..….. ID No.: ………………………………………………………………………………………………..…………………………….. Commercial Register No. (Companies): …………………………………………………………………………….. Passport No.: ………………… Issued by: …………………….. On: ……………………. Permanent Address: District ……………………………………………. City …………………………………… P.O Box ……………………………………….. Postal Code ……………………………………. Telephone: Work: ……………………………………………………. Mobile: ……………………………………………………………. Fax: ……………………………………………………………. Email: ……………………………………………………….. 89 Project Information Project’s Trade Name: ………………………………………………………………………………. Project Address: District ……………………………… City ………………………………….. Ownership type: ……………………………………………………………………… Owned □ Attaching a copy of legal instrument with the original copy Leased □ Attaching lease contract of a 10-year period, certified by notary public Allocated by the Ministry □ Attaching a copy of allocation resolution with the original copy Required by the Ministry □ Specifying the required site with known landmarks in a site sketch stating its coordinates Project Business (businesses): …………………………………………………………… Legal capacity: Individual □ Company □ Firm □ Other □ Project’s site: Marine sites: Coastal land □ Inshore □ Inland sites: Connected to agriculture project □ Not connected to agriculture project □ Project’s allocated land: ………………………………………………………………………….. hectare Project system: Project type: Marine aquaculture □ Inland aquaculture □ Marine sites: Open system: pools □ Fences □ Concrete ponds □ Floating cages □ Closed system □ Inland sites: Open system: Pools □ Tanks □ Concrete basins □ Closed system: Connected to aquaculture project □ Not connected to aquaculture project □ Cultured Aquatic Species: Fishes □ Caridean Shrimp □ Other □ 90 Cultured Aquatic Species’ name: Common Arabic name: ………………………………………….. Common English name: ……………………..………………….. Scientific name ………………………………… Project’s productive capacity ……………………………………………….. Ton/year Project financing Private capital □ Loan from Agriculture Development Fund □ Other sources □ Specify…………………………………………………………………………………………………………………………………………………… ……………………………………………………………….. 91 Terms of Obtaining Aquaculture Project License First: Inland water projects Terms of obtaining a license: 1. Submitting an application for this department or a fisheries branch for establishing an aquaculture project, mentioning its type and productive capacity, and attached by the following documents: ✓ For individuals, submitting a copy of national ID, and for companies and firms, submitting a copy of national ID and a certified copy of commercial registry. ✓ A copy of title deed or a certified copy of lease contract of project’s site and no less than ten years, certified by notary public ✓ A site sketch of the project stating its coordinates ✓ A document by investor proving its financial status through submitting financial solvency by a national bank. 2. Submitting project’s initial technical and economic feasibility study, stating investor’s financing sources, in addition to: ✓ Technical measures plans: Including cultured aquatic species, site, production systems, biosecurity, production schedule, and feed use. ✓ Economic efficiency requirements: Including costs estimation, required financing and sources thereof, and investor’s financial status ✓ Technical efficiency requirements: Including project’s proposed administrative and technical team. 3. 3. A meeting with the investor shall be held by the competent authority with the intention of reviewing a visual presentation explaining the content of the initial technical and economic feasibility study of the project before a technical committee shall be established. 4. Assessing groundwater condition in the project’s area to make sure of its quantitative and qualitative appropriateness as per the project’s needs: A- If an aquaculture project operates on an open system inside an agriculture project in operation, the aquaculture project’s water needs must not exceed the related agriculture project’s water needs. 92 B- If an aquaculture project operates on a closed system and is connected to an agriculture project, the water exchange rate of the aquaculture project must not exceed 20% of the aquaculture total water amount. C- If an aquaculture project is not connected to an agriculture project in operation, a water management closed system must be followed, provided that the water exchange rate of the aquaculture project must not exceed 5% of the aquaculture total water amount. A study of how to benefit from discharged water shall be set. 5. Decision-making committee’s approval 6. Submitting project’s final technical and economic feasibility study: 7. Issuing project’s licenses as per: A- Project’s structural license, the period of which is set according to the project’s final technical and economic feasibility study. B- Project’s operational license of a thirty-year period (renewable) after making sure of the completion of the structural stage in accordance with the technical specifications stated in the project’s technical and economic feasibility study. 8. Submitting a written undertaking by investor stating that it shall strictly comply with all provisions/terms stipulated in the contract executed between it and this Ministry in case of license approval. If an investor breaches the contract provisions, this Ministry may terminate the contract after notifying the investor. Second: Coastal marine water projects Investor must submit the related application to this Department, to a fisheries branch or a Ministry’s branch, attached by the application form of approving the establishment of an aquaculture coastal investment project after filling it in and attaching the following documents: A- A site sketch of the project stating its coordinates B- A copy of national ID or, for companies and firms, a copy of commercial register, or, for foreign investor, a copy of passport. C- All related undertakings (attached) 1- Providing a document by investor evidencing its financial ability for establishing and operating project (financial solvency statement by a bank) 93 2- Carrying out a meeting with investors and providing visual presentation and initial technical and economic study stating the project’s objectives and work’s plan and mechanisms. 4- Assessing project’s site technically and stating its area by the competent authority’s specialists 5- Decision-making approval 6- Investigating site’s returns in favor of the Ministry by the Deputy-Ministry for Lands Affairs 7- Issuing an initial approval of project’s site examinations. 8- Submitting a project’s specialized environmental study to the General Authority of Meteorology and Environmental Protection. 9- Committee of Five’s approval of refilling and dredging works. 10- Submitting final technical and economic feasibility study to the competent authority of a capacity compatible with the site’s area and project’s facilities, to be set by a consulting firm accredited by this Ministry. 11- Releasing a lease contract with investors by the Deputy-Ministry for Lands Affair. 12- Issuing project’s licenses by the competent authority in accordance with the following mechanism: A) Structural license: the period of which is set in accordance with the project’s final technical and economic feasibility study B) Operational license: of a thirty-year renewable period 13- Referring a copy of project’s final technical and economic feasibility study attached by a copy of project’s license to the Agriculture Development Fund for financing the project in accordance with regulations, if so required by the investor. Third: Inshore marine water projects (Floating cages) 1- Investor must submit the related application to this Department, to a fisheries branch or to a Ministry’s branch, attached by the application form of approving the establishment of an aquaculture inshore investment project on floating cages system after filling it in and attaching the following documents: A- A site sketch of the project stating its coordinates B- A copy of national ID or, for companies and firms, a copy of commercial register, or, for foreign investor, a copy of passport. C- All related undertakings (attached) 94 2- Providing a document by investor evidencing its financial ability for establishing and operating project (financial solvency statement by a bank). 3- Carrying out a meeting with investors and providing a visual presentation of initial technical and economic study containing the project’s objectives, work’s plan, and mechanisms. 4- Assessing project’s site technically and stating its area by the competent authority’s specialists 5- Decision-making approval 6- Security approval of site by the General Directorate of Border Guard 7- Issuing an initial approval of project’s site examinations. 8- Submitting a project’s specialized environmental study to the General Authority of Meteorology and Environmental Protection. 9- Committee of Five’s approval of project’s berth if so required. 10- Submitting final technical and economic feasibility study by the investor to the competent authority of a targeted, productive capacity compatible with site’s area and project’s facilities, to be set by a consulting firm accredited by this Ministry. 11- Issuing project’s licenses by the competent authority in accordance with the following mechanism: A) Structural license: the period of which is set in accordance with the project’s final technical and economic feasibility study B) Operational license: of a thirty-year renewable period 12- Referring a copy of project’s final technical and economic feasibility study attached by a copy of project’s license to the Agriculture Development Fund for financing the project in accordance with regulations, if so required by the investor. 95 Undertaking “It is prohibited to establish any aquaculture project in the Kingdom of Saudi Arabia without this Deputy-Ministry’s approval.” I (we) ………………………………………………………………………………………………………., Submitting this application to obtain a license for …………………………………………… project In the area of …………………………………………………………………………, Undertake to comply with: 1- All clauses stated in the controls and mechanisms for issuing inland water aquaculture projects’ licenses. 2- Opening records of writing down all information related to my project. 3- Posting signs containing the project’s name and site at the nearest main road leading into the project. 4- Not expanding the project or adding any other production units without obtaining this Deputy-Ministry’s approval. 5- Starting the project's execution once the license is issued, and conducting the implementation stages under direct technical and administrative supervision by this Department to ensure that the investor implements its project according to the schedule stipulated in the feasibility study submitted and approved by the Ministry. This Department has the right to access the project at any time with the aim to follow up and control its implementation stages. 6- Submitting a monthly technical report to this Department on work progress at the project’s implementation stages (related questionnaire to be filled in) in order to detect achievement percentages and impediments that may be encountered by implementation operations. The investor must continue providing this Department with the project’s monthly technical report after starting operations and production (related questionnaire to be filled in). 7- Recruiting qualified technical staff for managing the project and providing the evidence thereof to the Department. This Department regularly follows up on the technical performance of this staff. 8- Assigning a technical coordinator by the project to be the point of contact between the project and this Department. 96 9- Achieving aquaculture project feasibility studies (a license’s requirement) by a consulting firm accredited by this Ministry. 10- Applying all clauses stated in the controls and mechanisms on issuing inland water aquaculture projects’ licenses. 11- Productive capacities described in the feasibility study, which is approved by this Department and upon which the license is issued. 12- Allowing this Deputy-Ministry’s officials to access the projects at any time to follow up operations from a technical aspect and take samples. 13- Applying biosecurity standards to the project. Applicant name: ……………………………………………………………………………… Signature: ……………………………………………………………………………………….. Its relation to project: …………………………………………………………………….. Date: ……………………………………………………………………………………………….. Name of researcher supervising data filling in: …………………………………. Signature: …………………………………………………………………………. Date: …………………………………………………………………………. Notice: Study will be assessed in the light of the information stated by the Department’s researchers before licensing the project. For more information on filling in this form, please call us at: 4016666 / 4012777, extension No. 4083. 97 Kingdom of Saudi Arabia Ministry of Agriculture Deputy-Ministry for Fisheries Affairs Eighth: Application Form and Procedures for Correcting the Status of Established, Unlicensed Inland Aquaculture Projects Fish Farming Department (2014 AD – 1435 AH) 98 Application Form for Correcting the Status of Inland Aquaculture Projects Investor’s name: ………………………………………………………………………………………………… ID No.: ………………………………………………………………………………..…………………………….. Permanent Address: District ………………………………. City …………………………………….…… P.O Box ………………………………………………………….….. Postal Code …………………………. Telephone: Work: ……………………………………………………….……………………………………. Mobile: ………………………………………………………………………………..………………………………. Fax: ……………………………………………………………………………………………………………………… Email: ………………………...……………………………………………………………………………………….. Cultured Aquatic Species: Fishes □ Ornamental Fish □ Other □ Cultured Aquatic Species’ name: Common Arabic name: ……………………………………………………..………………………………..….. Common English name: ……………………..……………………………..………………………………..…….. Scientific name ………………………………..………………………………..…………………..……………… Project’s productive capacity …………………………………………….. Tons/year 99 Project Information Project’s Trade Name: ……………...................………………………………………………………. Project Address: District ……………………………… City ………………………………….. Agriculture Directorate……………………………………… Ministry’s branch………………….. Commercial register No. ………………………… dated ………………….. issued by….………….. Land possession type: Owned □ Grant □ Legitimate revival □ Lease □ Other □ Project Status: Managed by its owner □ Leased(1) □ Requirements stated in appendix No. (1) must be met Farm General Business: …………………………………………………………………………………… Water Source: ……………….. Wells number: ………….… Flow rate (Gallon/Minute) ………. Project commencement date: …………………………… First production date: ………………….. Farm total area: ……………………………………….. Unite: ………………………………………. Allocated area for fish: …………..…………..…… Unite: ………………………….. Is there a hatchery in the project? Yes □ No □ Are there broodstock in the project? Yes □ No □ Number of broodstock ponds ……………………………. Total area ……….……………..M2 Number of hatching ponds …………… Buildings type ……………... Total water amount:…………..M3 Number of nursery ponds ………..…… Buildings type ……………. Total water amount: …………..M3 Number of rearing ponds ………….… Buildings type ………………. Total water amount:…………..M3 Number of grow-out ponds ………... Buildings type ………………. Total water amount:…………..M3 100 Project’s Technical Feasibility First: site appropriateness Water amount Enough □ Not enough □ Water quality Appropriate □ Inappropriate □ Soil quality (for ground ponds) Appropriate □ Inappropriate □ Allocated area for the project Satisfactory □ Unsatisfactory □ Need more area □ No need □ Area could be increased □ Impossible □ Site climate conditions: Good □ Not good □ Not good conditions ……………………………………………..……………………………………………..……………………………………………………………………… …..……………………………………………………..……….………………………………………………………………………………..…………..… …………………………………………..………………………………………………………………………… Temperature: ………………………… °C Road leading into the project: its distance from main road ……………………. Km Paved □ Not paved □ Good □ Bad □ General services: Electricity 101 Yes □ No □ Telephone Yes □ No □ Freshwater From the project □ Outside the project □ Transported through …………….Km distance Nearest city………………………………….. Distance …………………………. Km Nearest marketing place …………………………………………………………………………….. Nearest similar project’s name ……………………………………. It is ……………. Km away from here Second: Cultured Aquatic Species Tilapia □ Carp □ Catfish □ Other □ Arabic name: …………………………………………………………………………………………………… English name: ………………………………………………………………………………………………….. Scientific name: ……………………………………………………………………………………………… Cultured Aquatic Species is suitable for environment Yes □ No □ Do you agree to bring new species? Yes □ No □ Source of larvae and fingerlings From project □ Hatched inside the Kingdom □ Hatched outside the Kingdom □ Hatchery’ name and address: ………………………………………………………………………… Purchase costs: 102 Larvae …………………………… Riyals/ 1000 larva Fingerlings …………………… Riyals/ Fingerling Rearing method: Extensive □ Semi intensive □ Intensive □ highly intensive □ Do you agree to convert the project to the closed system? Yes □ No □ Storage intensity: ………………………………. Fish/m3 Productive capacity: ………………………… Tons/year Production cycles number/year ………………………………………. Cycles Third: Feeding Feed source Local □ Company’s name: ……………………………………………….. Imported □ Company’s name: ………………………………………..……… There is a feed plant □ Productive capacity: …………..……………………………….. Tons/year There is no feed plant □ Feeds manufactured by farm □ Feeds are not used □ Feed price per ton: ……………………….……………………….……………………….……………… Riyals Daily feeding rate (% of body weight): Broodstock for hatching: ……………………………….% Larvae: ……………………………………….% 103 Fingerlings: ……………………………………….% Juvenile fish: ……………………………………….% Feeding techniques: Manual □ Automatic □ Other □ Mention …………………………………………………………………………………………………….. Feed warehouse: Yes □ No □ Area: ……………………………….. m2 Fourth: Harvesting and marketing Harvesting is made Manually □ Automatically □ Other □ Mention ……………………………………………………………………………………………… Harvesting times: Daily □ Weekly □ Monthly □ Annually □ Daily production: ………………………………….. Kg Marketing size: Tilapia □ Average: …………………………………………… G Carp □ Average: …………………………………………… G Catfish □ Average: …………………………………………… G Other □ Average: …………………………………………… G 104 Production transportation: Refrigerator car □ Car with water basin □ Usual car □ Other □ Mention …………………………………………………………………………………………………. Species marketing rate: Species % Alive Chilled Other Tilapia □ □ □ □ Carp □ □ □ □ Catfish □ □ □ □ Ornamental Fish □ □ □ □ Other □ □ □ □ Marketing place and rate Local □ Average: …………………………... % □ Export □ Average: …………………………... % □ Fish market □ Average: …………………………... % □ Private shop □ Average: …………………………... % □ Farm marketing □ Average: …………………………... % □ Hotels and restaurants □ Average: …………………………... % □ Other □ Average: …………………………... % □ Marketing method and percentage: Wholesale □ Average: …………………………... % □ Retail □ Average: …………………………... % □ As requested □ Average: …………………………... % □ 105 Project Financing Private capital □ Loan from Agriculture Development Fund □ Commercial loan □ Other source □ Mention …………………..…………………..…………………..…………………..…………………..…………………..…………………..…………………..… ………………..…………………..…………………..…………………..…………………..………………….. Project Expenditures and Revenues First: Fixed investment costs: …………………………………………………………………………………… Second: Annual maintenance and consumption: ………………………………………………… Third: Operational costs: ………………………………………………..…………………………………… Revenues: ………………………………………………………….………………………………………………… 106 Appendix (1) Lessee name: ……………………………………………………………………………………………………………………. Address: ………………………………………………………………………………………………………………………….. Telephone: ………………………………………………………………… Fax ………………………….………………… Contract term: ……… Commencing from ……..…………… A copy of the contract to be attached Is the project established by the lessee? Yes □ No □ Are there facilities added by the lessee? Yes □ No □ Has the lessee amended any of project’s technical feasibility clauses? Yes □ No □ Summary of major amendments: 1. ………………………………………………………………………………………………………………………………………… 2. ………………………………………………………………………………………………………………………………………… 3. ………………………………………………………………………………………………………………………………………… 4. ………………………………………………………………………………………………………………………………………… 5. ………………………………………………………………………………………………………………………………………… 6. ………………………………………………………………………………………………………………………………………… 7. ………………………………………………………………………………………………………………………………………… Lessee name: ……………………………………………………………………………… Signature: ……………………………………………………………………………… 107 Undertaking I (we) ………………………………………………………………………………………………………., Submitting this application to obtain license for …………………………………………… project In the area of …………………………………………………………………………, undertake to comply with: 12- Applying all clauses stated in the controls and mechanisms on issuing inland water aquaculture projects’ licenses. 13- Opening records to write down all information related to my project. 14- Posting signs containing project’s name and site at the nearest main road leading into the project. 15- Not expanding the project or adding any other production units without obtaining this Deputy Ministry’s approval. 16- Submitting monthly technical report to this Department on work progress in the project 17- Recruiting a qualified technical staff for managing the project and providing an evidence thereof to the Department. This Department regularly follows up the technical performance of this staff. 18- Assigning a technical coordinator by the project to be the point of contact between the project and this Department. 19- Achieving aquaculture projects feasibility studies (a license’s requirement) by a consulting firm accredited by this Ministry. 20- For coastal projects, investor shall comply with the provisions stated in Article five of (the contract) signed therewith, stating that: (investor may not transfer or sublease the whole or part of the leased site to third party). No consideration will be given for transfer applications submitted to this Sector, in which investor leasing a coastal site requests to transfer it to another investor. 108 21- Productive capacities described in the feasibility study, which is approved by this Department and upon which the license is issued. 12- Allowing this Deputy-Ministry’s officials to access to the projects at any time in order to follow up operations from technical aspect and take samples. 13- Applying biosecurity standards to the project. Applicant name: ……………………………………………………………………………… Signature: ……………………………………………………………………………………….. Its relation to project: …………………………………………………………………….. Date: ……………………………………………………………………………………………….. Name of researcher supervising data filling in: …………………………………. Signature: …………………………………………………………………………. Date: …………………………………………………………………………. Notice: Study will be assessed in the light of the information stated by the Department’s researchers before licensing the project. For more information on filling in this form, please call us at: 4016666 / 4012777, extension No. 4083. 109 Procedures for Correcting the Status of Established, Unlicensed Inland Aquaculture Projects 1- Investor will submit an application for correcting the status of its established project to this Department, a Deputy-Ministry’s branch, or a Ministry’s branch, attached by the following documents: A- A copy of land’s title deed or a certified copy of lease contract of no less than ten-year period. B- A site sketch of the project stated by coordinates C- A copy of national ID or a copy of commercial register. D- All related undertakings 2- Accessing to the project by a socialized technical team appointed by this Department or Deputy Ministry branches and filling in the form set by this Department (Application form of correcting the status of established project). 3- Visiting the site (by this Department, or a Deputy-Ministry’s branch, or Agriculture directorates) and examining facilities situated in the agriculture project and preparing a technical report thereof. 4- Addressing the Ministry’s branch based in the project area to prepare a technical report on water production of the wells found at the project. 5- Based on the reports stated in clauses (3 and 4), the productive capacity suitable for the aquarium project is set. 6- Directing investor to submit project’s technical and economic feasibility study as per the set production capacity, to be set up by a consulting firm accredited by this Ministry. 7- Achieving project’s technical and economic feasibility study (a license’ requirement) by a consulting firm accredited by this Ministry. 110 8- Assessing project’s technical and economic feasibility study by a technical committee comprises of this Department’s specialists within a maximum period of three weeks. 9- Issuing project’s operational license by this Department of a thirty-year period renewable as applicable. 111 Kingdom of Saudi Arabia Ministry of Environment, Water, and Agriculture Deputy-Ministry for Fisheries Affairs Ninth: Controls for firms issuing aquaculture projects’ technical and economic feasibility studies Fish Farming Department (2014 AD – 1435 AH) 112 Controls for firms issuing aquaculture projects’ technical and economic feasibility studies These controls aim at establishing general principles for setting detailed technical and economic feasibility studies to be submitted to the Ministry of Environment, Water, and Agriculture. Feasibility studies firms set up these feasibility studies for individuals, companies, or business enterprises wishing to invest in the aquaculture sector. These controls are as follows: 1. The firm must be accredited by the Ministry and has a valid license. 2. The firm must have experts, and technicians specialized in setting up aquaculture project’s technical and economic feasibility studies. 3. The firm must have competency by the Fish Farming Department. 4. The firm is obliged to correct errors and amend clauses reviewed and approved by the specialized technical committee assigned to assess studies. 5. The technical view of the studies firm is not binding on this Ministry. 6. The firm must prepare the project’s financial and economic analysis, the estimated cost for implementing the project, revenues, profits, and the return rate on the invested capital. 7. The firm must prepare the project’s engineering drawings in appropriate drawing scales, including the project layout and any other details in enlarged drawing scales. 8. The studies firm shall not amend or change the project or any of its drawings or documents approved by the investor formerly unless it obtains a written approval by the investor to be submitted to the Ministry. 9. The studies firm shall keep confidential the study’s information of the investor, submitted to the Ministry. 10. The Ministry may request any project related documents or papers from the studies firm for review. 11. The studies firm shall print a colored copy of the study’s original copy and two photocopies on white deluxe 80-gram papers. 12. The firm may not add any media to the study or promote a specific product therein. 13. The studies firm is responsible for any scientific material included in the study. 14. The Ministry does not recognize any undocumented scientific material in the technical and economic feasibility studies. 113 15. The firm must comply with the technical controls certified and approved by the Ministry in implementing the submitted technical and economic feasibility studies. 16. The study must mainly comprise of the following chapters in the order of appearance: o Objective presentation related to the project subject and its cultured aquatic species o Aquaculture constituents in the project’s area o Proposed cultured aquatic species o Engineering proposal of project’s facilities and equipment o Proposed aquaculture system o Harvesting and marketing o Project’s workforce o Financial and economic analysis o Project’s environmental effects o Biosecurity o References o Attachments: project’s engineering drawings and components to be clear and in conformity with the specifications stated in the study.