FILE PHOTO: Together with an oil spill boom and skimmer, the Philippine Coast Guard (PCG) was around the suspected area of the sunken oil tanker MT Princess Empress at the northeast of Balingawan Port, Lucta Port, and Buloc Bay in Oriental Mindoro on March 14, 2023. | PHOTO: Malayan Towage and Salvage Corporation via Philippine Coast Guard
MANILA, Philippines — A claim of up to 203 million Special Drawing Rights (SDRs) or $284 million (P15.8 billion) from the International Oil Pollution Compensation (IOPC) Funds may be available to those affected by the Oriental Mindoro oil spill, said a Justice Undersecretary on Wednesday.
According to Department of Justice (DOJ) Undersecretary Raul Vasquez, claimants of the fund would be those whose livelihood were affected by the oil spill, including government agencies.
“The maximum coverage for the oil spill, based on the IOPC, would only be up to 203 million SDR or in US Dollars, it would be $284 million US dollars. It is not $1 billion dollars, as earlier mentioned and then floated around,” Vasquez said in an interview on ANC’s Rundown.
According to the International Monetary Fund’s website (IMF), the SDR sums up values in US dollars (based on market exchange rates) amid major currencies like the Euro, Japanese yen, and others.
“The SDR currency value is calculated daily,” said the IMF.
Vasquez said that talks of a $1 billion claim came from the assumption that there was going to be a supplementary fund of 750 million SDR.
While there is a supplementary fund, the Philippines is not a consignee of that particular agreement, making it unavailable, according to Vasquez.
The $284 million claim would cover “all of those areas affected,” said Vasquez. This would include fisherfolk, as well as government agencies.
The Department of Environment and Natural Resources, Philippine Coast Guard, and the Office of Civil Defense will have an “inter-agency determination” to see how much of the claim could go to the government, said Vasquez.
When asked about the timeline of the possible compensation however, Vasquez was not able to provide any dates, saying that he had also asked the same question to the IOPC representative.
The DOJ Undersecretary explained that the IOPC is a mutual fund. Since the Philippines is a member state, it contributed to the fund and is also entitled to compensation.
“Everybody contributes, and the fund would be the source of the payment for all claims in respect to oil pollution,” he said.
The MT Princess Empress sank in the waters of Oriental Mindoro on February 28, causing widespread loss of livelihood in the province especially for fisherfolks.
In March, the insurance association of the ship owners of the MT Princess Empress had also given out claims to those affected by the oil spill through a claims caravan.