VIP guardians fire salvo

Japanese financial institutions are in hot water over financing a project of San Miguel Corp. near the world heritage area Verde Island Passage (VIP), which is considered the center of marine biodiversity.

Fisherfolk communities, environmental advocates, and civil society organizations condemned the Japan Bank for International Cooperation (JBIC) on Friday for violating Philippine-mandated laws on its investments in the Ilijan liquefied natural gas (LNG) terminal facility.

An examination report by the JBIC’s environmental compliance arm regarding the complaint filed by affected fisherfolk and Protect VIP in December 2023 concluded that the project caused no harm to the environment and local livelihoods, despite acknowledging violations of Philippine laws.

“This disappointing investigation conduct and result affirms the alarming role that Japanese public funds continue to play in emboldening continued gas and fossil fuel buildout in highly biodiverse yet climate-vulnerable developing nations like ours — at the cost of our people’s very means of living and our hope for a just energy transition,” Fr. Edwin Gariguez, convenor of Protect VIP, said.

JBIC, along with Osaka Gas, made an equity investment amounting to $100 million in Atlantic Gulf & Pacific Company (AG&P), which invested P14.6 billion in the Linseed LNG terminal in Ilijan, Batangas.

In a statement released by the group, the JBIC examination report acknowledged the AG&P-Linseed LNG import terminal’s violations of The Coconut Preservation Act of 1995 and the Department of Agrarian Reform (DAR) Administrative Order 2002-01, which contradicts the bank’s Guidelines for Confirmation of Environmental and Social Considerations.

“The latest JBIC examination report is yet another testament to Japan’s disregard for the struggles faced by communities affected by its LNG finance. The complaint procedure is supposed to be the last resort for these communities to voice their concerns and seek justice. Yet since its inception, JBIC has never acknowledged any violations of its own guidelines, even when complaints are thoroughly substantiated with empirical evidence and firsthand testimony from community members, as in this case. This raises serious questions about the validity of the complaint procedure and the independence of the examiner,” Hiroki Osada, Development Finance and Environment Campaigner of Friends of the Earth Japan, said.

JBIC also claimed that the fisherfolk petitioners “did not incur damages” from the LNG projects and that the decline in fish catch and water quality were only “theoretical possibilities.”

“Our fish catch really declined upon the rise of LNG plants and terminals in our town. It is insulting that we brave the seas every day, while our grievances about the impacts of these projects on our livelihood and health are belittled. We are concerned that if these projects are still permitted and continue to grow in number, the ocean where our income and culture are rooted would be completely destroyed.”

The investigation also prompted global civil societies to urge the Japan state-funded bank to halt its financial support to the project.