Camarines Sur Rep. Luis Villafuerte, who heads the House committee on fisheries and aquatic resources, said the Department of Budget and Management, Department of Finance, and National Disaster Coordinating Council will seek the reimbursement from IOPC as provided for in the 2006 supplemental budget. The reimbursement will cover the financial assistance to coastal communities affected by the oil spill. IOPC Fund was established in 1992.
Under IOPC’s system, the owner of a tanker and its insurer should pay a certain amount for the damage following a spill. If the amount is not enough to cover all claims, the IOPC Fund may provide additional compensation.
The IOPC Fund is backed by levies on certain types of oil transported by sea. The levies are paid by entities that receive the oil shipment.
Petron Corp., which chartered the MT Solar I, said it has paid P120 million in levies to the IOPC Fund since 1999. Petron also earlier said the IOPC Fund would extend up to $315 million (P15.75 billion) to cover "pollution damage" as a result of the spill.
Based on rules, the IOPC Fund 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."
The fund also covers "consequential loss or loss of earnings suffered by owners or users of properties contaminated as a direct result of an incident; environmental damage and other reasonable measures of restoration."