Napocor won’t receive full claim of P90M for clean-up of Semirara oil spill — GSIS

State-owned National Power Corp. (Napocor) will not be able to receive its entire P90-million insurance claim from the Government Service Insurance System (GSIS) for the clean-up of the Semirara oil spill, a ranking GSIS official said.

"We will pay once the adjuster determines the liability but we don’t believe it will reach P90 million. Normally, claims are inflated," GSIS president Winston Garcia told reporters.

A Singaporean insurance adjuster has arrived in the country to evaluate Napocor’s insurance claim based on the extent of the damage resulting from the oil spill.

Napocor said it had spent about P90 million for the clean-up operations. The amount, Napocor said, will be covered by insurance from the GSIS.

The GSIS, in turn, will collect from its re-insurers, British Marine Insurance and GPS.

On Dec. 18, 2005, Napocor’s Power Barge 106, while being towed by a tugboat to San Jose, Occidental Mindoro from Masbate City, ran aground within the vicinity of Semirara Island due to bad weather conditions.

Consequently, its fuel tanks were damaged causing the accidental spillage of approximately 210,000 liters of Bunker C fuel oil, which was carried by the prevailing current towards the island. The tugboat was manned and operated by a contracted private operator.

Affected were some 600 meters of the island’s rocky and sandy shoreline, and more than 100 hectares of mangrove areas with about 70 hectares heavily affected and 30 hectares slightly affected.

Napocor president Cyril del Callar said earlier that clean-up operations are ongoing and the oil spill has been contained within the Cayvilo Cove in the island.

He said the clean-up activity is expected to be completed by next month.