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Business

At long last, a facelift for Pandacan

BIZLINKS - Rey Gamboa - The Philippine Star

With finality, the Supreme Court ruled recently, a denial of all objections by the case’s defending parties on the long-standing issue about their stay in the existing Pandacan oil depots.

The Big Three, a collective name for the oil companies of Shell, Petron and Chevron (formerly Caltex), also received stern warnings from the court “under pain of contempt” if it tries once again to further delay the enforcement of the decision.

No more filing of new pleadings such as second motions for reconsideration, petition for clarification, requests for postponements, prayers for a second (or third) look, pleas for deferment, or any other kind of legal instrument that will delay enforcement of the court decision, added the High Tribunal.

The three oil companies had different reactions to the decision of the Supreme Court last November 2014, which in effect upheld City Ordinance No. 8027 passed during the term of Mayor Lito Atienza in 2001, but which was overruled by Ordinance No. 8187 during the term of Mayor Alfredo Lim in 2009.

[A petition was filed by Pandacan-based Social Justice Society with the High Court subsequently stating that the Manila City Council can only adopt measures to promote the general welfare of its inhabitants. In 2012, the Manila City Council passed Ordinance No. 8283 in favor of kicking out the oil companies’ terminal operations from Pandacan, although this was turned down by Lim.]

Big Three comments

Shell and Chevron filed motions for reconsideration and clarification, respectively, while Petron submitted a manifestation for a separate deadline for its compliance.

Shell’s motion for reconsideration was flat-out denied by the HighTribunal with a response that the subject had already been addressed in its review, and that there was no need to waste more time in going through the same motion.

The oil company responded by saying that “We shall study the implications of the Supreme Court decision and shall review the options available to Shell. Rest assured that Shell will observe the rule of law.

Earlier, Shell country chairman Ed Chua said that Shell had no alternative facility to replace the depot. “We will simply close down the facility and people will be jobless. It’s a major expense to relocate,” he had said (as published in The Philippine Star, March 12, 2015).

Caltex, on the other hand, wanted to know if it could continue to stay in Pandacan even with if it would cease the delivery and withdrawal of oil products from its facilities. The oil firm had already ceased operations in Pandacan last June.

The High Court refused to issue a clarification, saying that “there are overwhelming reasons stated in the decision to support the pronouncement of the court that the very nature of depots has no place in a densely populated area.”

In response, Caltex stated that it will “comply with the final decision of the Supreme Court on this issue.”

The Supreme Court, on the other hand, pointed out to Petron that it could not consent to its request for a separate compliance deadline. Incidentally, Petron chairman and chief executive officer Ramon Ang had earlier said that the oil firm was committed to stop its Pandacan operations by 2016.

January 2016 moving out date

There’s a slight confusion as to the basis for the date for the oil companies’ moving out date as per the latest Supreme Court ruling, but this seems to augur well for Petron, which did not wait or depend on the final court decision.

On its own initiative, Petron started work on alternative sites since three years ago. Now, two depots are operating—one in Harbour Center, and the other one in Navotas, while another one is being completed in Rosario, Cavite.

Petron, the country’s leading oil refinery and marketing company, has also stated that the cessation of Pandacan operations in 2016 will not affect fuel prices and supply.

A colorful century of existence

As the oil companies prepare for the last milestone (or tombstone) marking the end of its colorful history of Pandacan, residents must be celebrating their victory, one that would very likely change the face of the community that had lived for more than a century under the shadows of the oil companies’ tall walls.

Land values in the adjacent areas of the existing depots will be very speculative in the next few years as plans to build a business zone on the 33 hectares that will be vacated by the oil companies are already being discussed and planned.

The city government is hoping that the move out will initially give temporary jobs to workers to rehabilitate the evacuated territory, and then to build new structures. Then as commercial activity increases with the operation of malls, high-rise dwellings and other establishments, there will be additional permanent jobs.

The City of Manila badly needs a facelift—and more revenues. As Estrada has intimated, the city has electricity and water debts that need to be paid since its tax collections are not enough to pay for these most basic local government expenses.

No doubt, the former mayor of San Juan City before he ran for senator, then president of the country, is a seasoned executive in local government management.

Despite rumors of human rights abuses during his San Juan days (he would conduct early morning raids of then slums and pull out “criminals” from the lines of men), residents have been grateful to him for putting a semblance of order in the former municipality.

Even businessmen in San Juan have only praises for the former actor and a best friend of deceased presidential aspirant and fellow actor Fernando Poe, Jr.

Perhaps, Estrada is indeed someone that the City of Manila needs now as it strives to rehabilitate and uplift itself, and to become more responsive to its potential role as a City of Dreams.

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We are actively using two social networking websites to reach out more often and even interact with and engage our readers, friends and colleagues in the various areas of interest that I tackle in my column. Please like us at www.facebook.com and follow us at www.twitter.com/ReyGamboa.

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.

 

vuukle comment

BIG THREE

CALTEX

CITY

CITY OF MANILA

COURT

HIGH COURT

OIL

PANDACAN

PETRON

SUPREME COURT

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