MGB Central Office – The Mines and Geosciences Bureau (MGB) issued Memorandum Circular No. 2020-004 on June 3, 2020 in re: Clarificatory Guidelines for the Establishment of the Contingent Liability and Rehabilitation Fund for Dredging Projects/Activities Pursuant to the DPWH-DENR-DILG-DOTR Joint Memorandum Circular (JMC) No. 1 Series of 2019.
The said clarificatory guidelines were issued by MGB pursuant to Article IV, Section 1 of Department of Environment and Natural Resources (DENR) Administrative Order (DAO) No. 2020-07 in re: Rationalizing Dredging Activities in Heavily-Silted River Channels Pursuant to DENR-DPWH-DILG-DOTr JMC No. 1, Series of 2019, wherein all holders of dredging clearance shall comply with pertinent laws, rules and regulations on environmental protection, the allocation of funds for environment-related expenditures, environmental impact assessment, and setting up of the contingent liability and rehabilitation fund among others.
Accordingly, a Contingent Liability and Rehabilitation Fund (CLRF) shall be established as an environmental guarantee fund mechanism to ensure just and timely compensation for damages and progressive and sustainable rehabilitation for any adverse effect a mining operation or activity may cause pursuant to Section 180 of DAO No. 2010-21 in re: Revised Implementing Rules and Regulations of Republic Act No. 7942, otherwise known as the Philippine Mining Act of 1995.
The salient provisions of the same clarificatory guidelines state that the CLRF shall be established for the following dredging projects/activities, and shall be managed and administered by CLRF Steering Committee pursuant to Section 193 of DAO No. 2010-21:
- Dredging with commercial utilization of dredged materials, as stipulated under Sections 5.1.2b and 5.1.2c of the JMC No. 1, Series of 2019, and with Special Mines Extraction Permit, as stipulated under MGB Memorandum Circular No. 2019-07 in re: Clarificatory Guidelines on Section 5.1.2c of DPWH-DENR-DILG-DOTR JMC No. 2019-01; and
- DENR River Restoration through dredging activities, as stipulated under Section 5.4 of JMC No. 1 Series of 2019.
However, it is also stated that the Environmental Guarantee Fund (EGF) and Environmental Monitoring Fund shall be established for dredging with commercial utilization of dredged materials, with permits issued by the Provincial/City Mining Regulatory Board and Local Government Unit as identified under Section 5.1.2a of JMC No. 1 Series of 2019, and shall be managed and administered by the EGF Committee pursuant to Section 9.3 of DAO No. 2003-30 re: Implementing Rules and Regulations (IRR) for the Philippine Environmental Impact Statement (EIS) System. (Website Article by the MGB Central Office, June 8, 2020)