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Image: El Comercio

One month after the Repsol oil spill, what is the economic impact?

Click on the flag for more information about Peru PERU
Thursday, February 17, 2022, 06:50 (GMT + 9)

Since the oil spill began, more than 20 beaches have been affected, fishermen have lost their jobs and businesses are without income because there is no tourism.

One month after the ecological disaster, caused by the Repsol oil spill on the Peruvian coast, marine species continue to die, crude continues to sink into the sea, the affected fishermen have no help to support their families, there are thousands of jobs lost and there is no tourism in more than 20 beaches. A great environmental and also economic damage.

According to Alfonso Miranda, president of the Committee for the Sustainable Management of the Giant Squid of the South Pacific (Calamasur), beyond what is obvious, such as the errors in the operation of the oil company, and that the whole truth was not told at the beginning (that 11,900 barrels of crude oil were dumped into the sea), there are many reflections to be made in order to be prepared for similar situations.

“In Peru, they have acted very slowly and until now it is still said that we are going to receive advice from technicians. What could happen if there is an earthquake with all fuel installations in the sea or explosive substances? Who guarantees us that there are security and protection mechanisms? It is urgent to demand that the State inform us of the contingency plan for a disaster of this nature”, he referred.

In addition, the expert said that with the oil spill there is an affectation from Ventanilla to Chancay and that it threatens to expand. As a result of this ecological disaster, approximately 3,000 artisanal fishermen were left without work.

In an estimate of loss, Miranda stated that it would be S/ 10,000 per month for each fisherman this season; that is, in total an economic loss of S/ 30 million would be recorded.

"To this we must add a significant number of trades that are carried out around the beach season because in summer the income for them increases," he said.

Without tourism and employment

Not only the fishermen are the ones who have been harmed, but also the chain of tourism and businesses on the beaches that have been contaminated. In this line, the economic loss would add more than S / 500 million until March, projected the National Chamber of Tourism (Canatur).

"The estimates are S / 500 million in the season from January to March, since tourism services have practically been canceled in more than 20 beaches, because many of them are closed due to pollution," said Carlos Canales, president of the union. 

He added that approximately 90,000 jobs in the beach tourism sector also lost their jobs due to the oil spill.

Insufficient subsidy

Both Canatur and Calamasur expressed that the S/ 1,000 bonus that the Government contemplates giving to workers affected by the oil spill is insufficient.

“Fishermen cannot settle for a bonus tip. They need to be compensated in the same proportion as their life expectancy in terms of food, housing, education and health income for their families. They have to compensate him,” said Alfonso Miranda.

Meanwhile, the president of the tourism union replied that "a very specific study must be carried out to cover adequate compensation for those affected and the payment must come from Repsol."

According to Repsol, it has reached agreements and collaboration acts with 34 groups of fishermen and merchants from Chancay, Ancón, Santa Rosa and Ventanilla, among others, comprising more than 2,800 people.

He also pointed out that they are in dialogue with other associations, which represent more than 800 people, to incorporate them into this process. Likewise, in coordination with the affected population, it is developing medium and long-term support plans.

Fine for Repsol

The Environmental Assessment and Enforcement Agency (OEFA) reported that it imposed a first fine of 100 UIT (S/ 460,000) on Repsol for non-compliance with the first measure ordered, related to the identification of the affected areas after the oil spill, which will continue to be applied successively until compliance is proven.

"It is important to specify that there is also an administrative sanctioning procedure initiated for non-compliance with this measure, where the fine can amount to up to 4,000 UIT (S / 18 million)," the OEFA said via twitter.

In a statement, the oil company specified that, through their lawyers, they have filed a claim with the owners of the Mare Doricum ship and their insurers, which marks the beginning of the coverage process for the damage caused by the oil spill.

To date, Repsol has reported a 72% clean-up progress in the areas affected by the spill from the Mare Doricum ship, and is now in the final phase of the schedule of actions to collect the product. Upon completion of this work, environmental remediation activities will begin.

Author / Source: Javier Artica / El Comercio (Article available only in spanish)

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