In the wake of the rising number of vessels sinking in rivers, Bangladesh has been requested to join the International Oil Pollution Compensation Funds (IOPC Funds) which provides compensation for pollution-related damage resulting from oil spills from tankers, officials say.
The IOPC Funds are two inter-governmental organisations (the 1992 Fund and the Supplementary Fund) financed by contributions paid by entities that receive certain types of oil by sea.
The call came following the sinking of an oil tanker in the Shela river of the Sundarbans in December last year. It caused spillage of 350,000 litres of furnace oil causing damage to flora and fauna of the mangrove forest.
The forest, which is home to rare species like Irrawaddy and Ganges dolphins, more than 250 species of birds, Indian python and Royal Bengal tigers, faced a disaster-like situation following the incident.
The incident, according to a study of Khulna University, caused significant reduction in primary food producers like phytoplankton and zooplankton in the water of the river. The food chain of aquatic species living in the Sundarbans has faced a severe disruption due to the oil spill.
Sources said IOPC Funds director Jose Maura met Shipping Minister Shajahan Khan last month during his London visit and said the sinking of the oil tanker in the Shela River drew global attention as a significant damage from the oil spill was feared.
He told the minister that Bangladesh needed to join the IOPC Funds, if it wanted to get compensation in case of such damages caused by oil spill. Recently he also sent a letter to the minister elaborating the process of joining the funds.
"The clean-up operations (in the Sundarbans) were significant and the incident caused pollution damage over a wide area. However, since Bangladesh was not a party to the 1992 Civil Liability and the 1992 Fund Conventions, the 1992 Fund is not in a position to provide compensation to claimants," Mr Maura wrote in the letter.
He requested the minister to ratify both the 1992 Civil Liability and Fund Conventions at the earliest opportunity to ensure that in future compensation is available to victims of oil pollution-caused damage from any such incident involving a tanker.
Mr Maura said under the international regime of liability and compensation for oil pollution damage by oil spills from tankers, the owner of a tanker is liable to pay compensation up to a certain limit for oil pollution damage following an escape of persistent oil from his ship.
He said if the amount does not cover all the admissible claims, further compensation is available from the 1992 Fund if the damage occurs in a state which is a member of that Fund.
"Additional compensation may also be available from the Supplementary Fund if the state is a member of that Fund as well," he said.
The 1992 Fund is financed by levies on persistent oils carried by sea. The levies are paid by entities which receive oil after sea transport.
The Funds are meant to compensate the victims of any such incident, cover costs incurred for clean-up operations or measures to prevent or minimise pollution damage, and private bodies or individuals who have suffered damage as a result of oil pollution.
A senior official at the ministry of shipping told the FE the ministry was examining the pros and cons of the proposal before taking a decision on joining the IOPC Funds.
He said the number of incidents in Bangladeshi rivers and sea territory had been increasing.
"Joining the Funds has no financial involvement for the state, rather it would get compensation in case of damage from oil spill," he added.
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