Napocor readies payment for damage claims in oil spill

The National Power Corp. (Napocor) said over the weekend that it would soon start paying claims for damages by individuals affected by the oil spill in Semirara Island.

Napocor sources said the amount of payment for the claims would reach P9 million.

"We are now finalizing the lists of claimants and would start the release of payments soon," a source said.

The Government Service Insurance System (GSIS) is the main insurer of the state-run power firm for oil spill damages.

The GSIS will, in turn, hand over the Napocor insurance claims to its reinsurers (British Marine Insurance and GTS) which will then negotiate with the adjusters.

While awaiting the disbursement of fund, Napocor is currently shouldering all the cost for the clean-up operations.

Last May, the state-owned power firm secured a provisional certificate of completion from the Philippine Coast Guard (PCG) for the clean-up of the oil spill in the 114-hectare area in the island of Semirara .

The certificate, the PCG acknowledged Napocor’s effort to complete and finish cleaning the affected areas which include sandy and rocky beaches as well as mangroves.

The clean-up was conducted by Napocor together with a PCG-accredited private company specializing in oil-spill clean-up, First Response Marine Services Inc. (FRMSI).

Aside from the clean-up and settlement of damage claims, livelihood assistance for the affected residents are also entering the final phase of processing.

With the clean-up substantially finished, the rehabilitation of the affected mangrove areas, under the direction and guidance of the Department of Environment and Natural Resources, had also started.

On Dec. 18, 2005, Napocor-owned Power Barge 106, ran aground off the coast of Semirara Island, in Caluya, Antique, after encountering strong winds and waves due to inclement weather.

More than 210,000 liters of Bunker C fuel oil were spilled due to the accident. The strong sea currents subsequently brought the spilled oil to Kaybelo Cove, affecting some 113 hectares of shoreline, sandy and rocky beach, and mangroves.