A defining statement from the Supreme Court defends Ordinance No. 8027 saying that, “(the ordinance) was enacted right after the Philippines, along with the rest of the world, witnessed the horror of the September 11, 2001 attack on the Twin Towers … (and the objective) is to protect the residents of Manila from the catastrophic devastation that will surely occur in the case of a terrorist attack on the Pandacan Terminals.”
An official report prepared by Pandacan Police Station (PS-10) Commander P.Supt. Abad Hesito Osit states that the Pandacan District has a total land area of 3.93 square kilometers and is made up of 5 zones with a population of approximately half a million during the daytime and 200,000 at nighttime. Three PCPs or substations can be found in the areas of Beata, Zamora and Labores and when combined, have a total combined strength of 116 policemen. This means that there is one policeman for every 4,300 individuals during the daytime and one policeman for every 1,700 individuals in the evening.
The police forces are further augmented by “friendly forces” composed by a Regional Special Action Unit, the Presidential Security Group at the Malacanang Park, Civil Military Operations, and the Philippine Coast Guard that regularly patrols the Pasig River. Vital installations mentioned in the report include the oil depot of Shell, Petron and Chevron (Caltex) - each maintaining its own private security force.
Although Osit is confident about the current safety situation of the depot in Pandacan saying that, “Kung pag-uusapan ang safety, wala namang masyadong risk kung sa pagkaroon ng pagsabog (If we talk about safety, there’s not much risk involved if there is an explosion),” in the same breath, he mentions that the risk of an explosion is different “unless (the bombing) is initiated by terrorist acts.”
Any imminent threat to the Pandacan oil terminal has to pass through three layers of security. The outer layer is made up of the members of the Philippine National Police who maintain three checkpoints in Caritas, Laura-Carreon and Zamora Interlink. The checkpoints are located along the main routes where all vehicle approaches leading to the oil depot are covered by the local policemen.
The second layer is comprised of 21 individuals from the Regional Special Action Unit (RSAU) of the Philippine National Police. Most officers in the RSAU are trained in counter-terrorism and urban warfare in the United States and provide Special Weapons and Tactics (SWAT) training for key police units in the Philippines. The innermost layer is made up of the oil companies’ security guards.
According to Osit, the level of security inside the depot is something that he cannot completely comment on because some critical areas inside the facilities are off-limits, even to the Philippine National Police. “Nagkaroon kami ng ugnayan dyan with the PDSI (Pandacan Depot Services, Inc.) … ang sabi nila ang area na to may mga buffer zone yan … may mga restricted areas dyan even kami di makapasok. (We have a coordination with the PDSI … and they said that the area has buffer zones … there are restricted areas that even we cannot enter), shares the Station Commander.
‘Table drills’ or simulations are regularly conducted between the security forces and the oil companies to minimize the likelihood of a widespread disaster. A high-ranking executive from Shell explained that, “The NICA (National Intelligence Coordinating Agency) has made games … where they make sure that a lot of government agencies that are attached to it … if there’s something that happens (NICA and the agencies will know) how they play it out … they’ve already quite a number of these scenario planning, in terms of what happens, when there are terrorist attacks and the like.”
Although safety and security are the top concerns of the Department of Energy (DOE), the government agency that supervises the Pandacan installation, the Executive is quick to point out that the oil companies that operate the depot are not there for security but for operational practices. “We move products in and out in a very efficient way since that is required by the industry. The security (that we provide) around the depot is the ingress and egress. That’s the only thing we do. We check the people and vehicles that go in and out … if some (armed) people come in … it will then go to the government and they will take action. There is a RSAU beside Pandacan where we have close communication and they will then respond in case of a terrorist activity … (NICA) takes care of all the coordination.”
Col. Osit however clarified that, “Wala namang specific threat pero hindi natin maiwasan na maging isa sa mga target ito dahil sa nature ng business … malaki ang implication kasi dito nangagaling ang supply ng buong Metro Manila (There is no specific threat but we cannot avoid that this (the installation) can be one of the targets due to the nature of the business … there’s a huge implication because this is where Metro Manila gets its whole fuel supply).”
This view is shared by Shell Philippines Issues Manager Mich Cruz. “The Pandacan oil depot have been supplying the needs of Metro Manila and Luzon for the past 90 years. Currently, it supplies about 50% of the total demand for fuel, 90% of lubricants requirements and 25% of chemical needs nationwide. If the Pandacan oil depot is closed, there would be a significant impact on the supply of fuels and lubricants,” notes Cruz.
Ordinance No. 8027’s objective to reclassify the Pandacan terminals’ territory from industrial to commercial zones and to relocate the depot presents several implications for both the community and the oil companies. For example, a number of residents along the fence-line barangays of 830, 833 and 834 benefit from the existing corporate social responsibility (CSR) programs of Pilipinas Shell Foundation, Inc. These programs include skills development and training, environmental, educational and health campaigns, to name a few.
For the major oil players, the relocation of the depot, which was initially ordered to take place within six (6) months of the implementation of the Ordinance was impossible. “The airport will run dry in 3 days … the port, North Harbor, will probably cease operations in 2 to 3 days also … practically 80-90% of gas stations will run dry in 3 days also, so you can imagine the chaos … that’s why they eventually pulled out the Ordinance (No. 8027),” expressed the Shell Executive.
A City’s change of heart
In July 1, 2006, the City Council of Manila passed Ordinance 8119 classifying Pandacan as a Planned Unit Development and Overlay Zone (O-PUD). Specifically, “O-PUD Zones are identified specific sites in the City of Manila wherein the project site is comprehensively planned as an entity via unitary site plan which permits flexibility in planning/design, building siting, complementarily of building types and land uses, usable open spaces and the preservation of significant natural land features, pursuant to regulations specified for each particular PUD.” The Pandacan Oil Depot Area was listed as ‘item number 6’ along with Chinatown and Intramuros, among others.
However, since the Pandacan Depot was serving industrial functions, the facility did not conform to the zoning regulations that were implemented by the City Planning & Development Office (CPDO) through Ordinance No. 8119, which stipulates that for non-conforming uses that are industrial in nature, “The land use classified as non-conforming shall program the phase-out and relocation of the non-conforming use within seven (7) years from the date of effectivity (of the Ordinance).” In effect, the oil companies were now given a grace period of 7 years instead of the original 6 months stipulated by Ordinance No. 8027.
“They themselves superseded it (because) they did not realize it … no one knew what the extent of the operations was at the start… but when (the City Council) realized there’s no viable alternative up to now … (and) they needed time, then they came out with (Ordinance NO.) 8119,” stressed the Shell Executive.
The fact that the two ordinances run in opposite directions with the zoning classification of the Pandacan Oil Depot, including the periods for the relocation of the businesses presents an interesting insight. According to Mich Cruz, “This (new ordinance) superseded Ordinance 8027. We have also questioned the validity of Ordinance 8119 in the Regional Trial Court of Manila and the two cases are still being actively litigated.”
While the public patiently waits for the Supreme Court’s decision regarding the two ordinances, the greater question on everyone’s minds is the impending effect of the relocation. The cost for relocating the Pandacan depot is pegged at Php42 billion. Until now, the oil companies are still studying alternative sites for the transfer of the facility.
The Shell Executive goes further in explaining that the effects of the relocation can be mitigated through the support of the government. “If the government does not give the incentives to the oil companies then obviously the oil companies will pass on the costs to the consumer. There will be a reaction from the consumer … if the government asks the companies (to lower the oil prices) then we will start questioning how to recover the capital … we can build a depot in Antipolo but does the Filipino people have the money to make that alternative which is very far away from everybody? Who’s going to pay for the (infrastructure) … its not viable,” expressed the top Executive.
- Concluded in Part 3 -


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