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Bacolod City, Philippines Monday, February 20, 2006
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Approval of bills seeking fund
to address oil spill sought

BORACAY ISLAND, Aklan -- The Coast Guard is pushing for the passage of pending bills that will provide an emergency fund to effectively address oil spills like the recent massive spill in Semirara, Antique.

Deputy Commander Allen Torribio, chief of the Coast Guard's Marine Environmental Protection Command, said they had difficulties in responding to the spill and in the ongoing cleanup operations in Semirara because of the lack of funds.

Torribio said in a public hearing of the Senate committee on environment and natural resources and the Joint Congressional Oversight Committee on Clean Water here on Saturday that the National Power Corp. has failed to provide funds to the Coast Guard for the cleanup operations which started two months ago.

The Coast Guard has already shelled out around P14 million from its operational funds but has not been reimbursed by the Napocor, Torribio said.

He said the spillers should not wait for insurance firms to release payments because this would take from several weeks to months and would affect response to spills and cleanup operations.

There are several pending bills in the Senate and in the House creating an oil spill liability fund. Napocor president Cyril del Callar said in the hearing that the state-owned agency "is not skirting" its responsibility to shoulder the cost of the cleanup and the damages.

He said they are still processing their insurance claims before the Government Service Insurance System.

Del Callar said the Napocor has already released P3.5 million from its funds for operations related to the oil spill. It has also released another P15 million through the Semirara Mining Company which it will refund when the insurance claims are released.

The Coast Guard earlier said the cost of the oil spill, the biggest in the country's history, would run around P90 million. But Torribio said in the hearing that the cost could go up.

Sen. Pia Cayetano, chairperson of the Senate committee on environment and natural resources, pointed out Napocor's failure to tap the Environmental Guarantee Fund amounting to P5 million which could have helped in the cleanup operations.

Under Presidential Decree 1586 or the Philippine Environmental Impact System Law, the EGF is a trust fund put up by proponents of environmentally-critical projects which could be immediately released in incidents that cause pollution like oil spills. It is a requirement in applying for an Environmental Certificate Compliance from the Department of Environment and Natural Resources.

Del Callar said they have not tapped the fund even as he admitted that they are still waiting for the release of their insurance claims.

Cayetano said the mechanics for the immediate release of the stand-by fund should be made clearer and specific.

Del Callar also assured the affected residents of Semirara that they provide alternative livelihood programs to compensate for their loss of income but he could not actual figures on the amount they will be providing for the residents.

He told reporters that they are still waiting for recommendations from the barangay on the feasible livelihood projects and programs.

At least 364,120 liters of bunker fuel have been spilled off the coast of Semirara after a Napocor power barge carrying more than 800,000 liters of oil ran aground 200 meters from the island on Dec. 18.

The spill has contaminated around 113 hectares of mangroves and other marine life and has affected around 10,000 residents of the 5,045-hectare island.*

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Approval of bills seeking fund to address oil spill sought