Gov't to seek refund from IOPC for Guimaras spill spending
The Philippine government will seek reimbursement from the International Oil Pollution Compensation (IOPC) Fund "and other appropriate sources" for all expenses incurred by national agencies in the Guimaras oil spill cleanup, Camarines Sur Rep. Luis Villafuerte, chairman of the House committee on fisheries and aquatic resources, said.
Villafuerte said Congress inserted in the 2006 supplemental budget a provision requiring the Department of Budget and Management, Department of Finance and the National Disaster Coordinating Council to seek repayment from the IOPC Fund for all spending, including aid to victims, in connection with the MT Solar I oil discharge.
Congress initially provided a total of P1.35 billion for the cleanup and rehabilitation of all zones corrupted by the spill. The amount, embodied in the supplemental budget, is broken down as follows:
P364.6 million for livelihood and support services for agrarian reform beneficiaries in affected areas (Department of Agrarian Reform);
P250 million for cash for work livelihood (Department of Social Welfare and Development);
P250 million for the recovery plans of local government units;
P118 million for the Philippine Coast Guard's cleanup operation (Department of Transportation and Communications);
P100 million for the restoration of coastal natural resources (Department of Environment and Natural Resources);
P100 million for alternative livelihood projects (Department of Agriculture);
P50 million for the Taklong Island Marine Station (University of the Philippines);
P30 million for waste disposal management (DENR);
P22 million for disease surveillance (Department of Health); and,
P65.4 million for other agencies.
Established in 1992, the IOPC Fund is part of a global regime of liability and compensation for oil spill damage.
Under the system, the owner of a tanker and its insurer are liable up to a certain amount for damage following a spill. If this amount does not cover all claims, the IOPC Fund may provide additional compensation.
The IOPC Fund is backed by levies on certain types of oil carried by sea. The levies are paid by entities that receive oil after sea transport.
Petron Corp., which chartered the Solar I, previously said it had paid P120 million in levies to the IOPC Fund since 1999. Petron also earlier said the IOPC Fund would extend up to US$ 315 million (P15.75 billion) to cover "pollution damage" as a result of the spill.
Under existing IOPC Fund rules, it may cover:
Expenses actually incurred in cleanup operations at sea or on shore;
Costs incurred for preventive measures and further damage caused by such measures;
Consequential loss or loss of earnings suffered by owners or users of property contaminated as a direct result of an incident;
Pure economic loss or loss of earnings sustained by persons even if the property damaged as a direct result of an incident does not belong to them;
Damage to human health or loss of life as a direct result of the incident; and
Environmental damage and other reasonable measures of restoration.
(PNA)