Probe on need for environmental insurance sought

MANILA, Philippines - A lawmaker is asking the House of Representatives to probe the necessity of requiring the Mandatory Environmental Insurance Coverage (MEIC) to address the effect of environmental damages of mining operations in the country.

Rep. Erineo Maliksi (3rd District, Cavite) filed House Resolution 2907 asking the House Committees on Natural Resources, Ecology, and Trade and Industry to conduct an inquiry on how the Environmental Guarantee Fund (EGF) under the Department of Environment and Natural Resources (DENR) is being disbursed.

“It is incumbent upon the government to ensure that, upon occurrence of man-made environmental disasters, areas are rehabilitated up to a state which allows people to go on with the normal course of their lives,” Maliksi said.

According to Maliksi, Presidential Decree 1586 was issued on June 11, 1978 to ensure that there would be a fund used in the rehabilitation of damages to the environment due to commercial activities.

PD 1586, also known as the Philippine Environmental Statement, directs the establishment of an Environmental Impact Statement System (EIS) by all agencies and instrumentalities of the national government including government-owned and controlled corporations, firms, and entities, for every proposed project and undertaking which significantly affects the quality of the environment, Maliksi said.

The DENR, under Secretary Elisea Gozun, issued Administrative Order 2003-30, which provides for the Implementing Rules and Regulations for the EIS.  Under the AO, EGF shall be promptly disbursed and utilized for the immediate rehabilitation of areas affected by environmental damages.

The fund will also be used to compensate parties and communities affected by the negative impacts of the project and to fund community-based environment related projects including but not limited to, information and education and emergency preparedness programs, Maliksi added.

“However, the delays in the resolution in the country’s large-scale environmental disasters, such as the 1996 Marcopper mining tragedy in Marinduque, raised questions on the adequacy of the EGF to fund compensation, cleanup, and rehabilitation requirements of affected areas and communities,” Maliksi said.

Maliksi said the Marcopper mining tragedy has caused the biological death of the Boac and Maculapnit rivers, destroyed 823 hectares of farmland and displaced 20,000 families. It continues to cause undue suffering to the people of Marinduque.

Recognizing that the current instrument has fallen short at ensuring full environmental responsibility in providing adequate and timely environmental rehabilitation, clean up, remediation, and protection for the affected communities, the DENR issued an administrative order, which requires the implementation of MEIC for all on-going activities/projects and applications for an Environmental Compliance Certificate (ECC) and certificate of Non-Coverage (CNC).

However, despite the Administrative Order’s issuance in February 2006, environmental disputes continue to occur with no effective resolution in sight.

In 2005 and 2007, cyanide spills as a result of mining operations of Lafayette Phil. Inc. caused massive fish kills, which affected more than 20,000 residents of Rapu-rapu, Albay.  In 2009, scientists discovered heavy mercury contamination caused by coal mining operations in the area.

“The reality of climate change threatens to magnify the losses which will be felt by these communities in the face of man-made environmental damages, thus highlighting the need that they may be adequately compensated and rehabilitated after the occurrence of these disasters,” Maliksi said.