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 in Verde Island Passage (VIP).
The response followed the release of the examination report by the JBIC’s environmental compliance arm regarding the complaint filed by affected fisherfolks and Protect VIP last December 2023. The report 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,” said Fr. Edwin Gariguez, convenor of Protect VIP.
JBIC, along with Osaka Gas, made an equity investment amounting to $100 million to Atlantic Gulf & Pacific Company (AG&P), which invested Php 14.6 billion in 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 No. 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 first-hand 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,” said Hiroki Osada, Development Finance and Environment Campaigner of Friends of the Earth Japan.
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’.
“Talagang naging matumal ang aming kita simula noong dumami ang mga planta at terminal ng LNG sa aming bayan. Nakakainsulto na araw-araw kaming pumapalaot para mag hanap-buhay, habang minamaliit lang ang aming mga daing patungkol sa epekto ng mga proyektong ito sa aming kita at kalusugan. Nangangamba kami na kung hahayaan at patuloy pang dadami ang mga proyektong ito ay tuluyan nang masisira ang dagat kung saan naka-ugat ang aming kultura at kabuhayan,” said Rodrigo de Jesus of Bukluran ng Mangingisda sa Batangas (BMB).
(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.)
“While these developments escalate, we remain firm on protecting the Verde Island Passage. We will not be fooled by JBIC’s attempt to wash its hands of this matter at the cost of communities and critical ecosystems in the VIP,” said Gariguez.
The investigation also prompted global civil societies to urge the Japan state-funded bank to halt its financial support to the said LNG facilities in an open letter.“With the continued support of AG&P and the Linseed project, JBIC is complicit in the destruction of the Verde Island Passage, a globally significant biodiversity hotspot that supports millions of Filipinos.
With such clear violations against Philippine law, we demand that JBIC withdraw financing for the AG&P and Linseed LNG import facility,” the letter reads.
