I. Background

An explosion in Pandacan, Manila, the busy capital of the Philippines, could arguably turn into the world's biggest petrochemical disaster. Pandacan is one of the most densely populated districts in Manila. Its boundaries contain the historic yet polluted Pasig River, other historical sites, and, as of last count, 83,998 residents of diverse economic backgrounds. However, many of the area's residents are living in poverty and occupy tiny houses that are built close to one another. Hundreds or even thousands of homes, especially those of the poor, are dangerously close to the Pandacan Petrochemical Depots which harbor tanks containing 330.5 million litres of gasoline, aviation fuel, crude-oil, bunker oil, diesel, and possibly other flammeable and potentially toxic substances.

The Presidential Palace, Malacanang, is only two kilometers away from the depot. Schools, daycares, churches, restaurants, and streetside barbecue vendors proliferate the area as well.

Even the ordinary observer can see that the risk posed if a fire or terrorist attack occurs is enormous. The United Firefighters of the Philippines and an international expert on disaster management estimate that the explosion of the Pandacan oil depot would result in devastation within a 2-kilometer radius. Aidan Tasker Lynch, disaster management expert and Executive Director of the Philippine Society of Emergency Medical Technicians, contrasts the Pandacan situation to the PEMEX explosion north of Mexico City in 1984. The explosion caused 600 deaths, 7,000 injuries, and damge or destruction to thousands of homes. The area had to be evacuated of tens of thousands if not hundreds of thousands of people.

However, in Mexico, nobody lived closer than 140 meters to the LPG depot. In Pandacan, the dwellings run right up to the depot walls, with the most densely populated being the closest. The depots, run by Pilipinas Shell Petroleum Corporation, Caltex Philippines (owned byTexaco which merged with Chevron in 2001), Mobil, Petron Corporation, and Unioil, sit on over 30 hectares of land.

Because the depots sit right on the bank of the Pasig River (which flows directly through the heart of Manila), it is feared that fire could also travel through spillage onto the river and spread to other parts of the city. What makes the situation worse, according to Alvin Estrada, spokesperson for the United Firefighters of the Philippines, is that Manila's fleet of barely adequately equipped fire trucks is limited to only 6 antiquated vehicles and there is very little in the way of Emergency Medical Services. It is greatly feared that an explosion or fire involving these depots could arguably lead to be the world's biggest petrochemical disaster. In addition, on a day-to-day basis it appears that toxic pollution could be the cause of many illnesses, including serious ones, that Pandacan residents suffer from.

The Petrochemical Depots were built in 1910 in Pandacan because of the area's proximity both to roads and to the river. The Martija family and Lucera Castillejos and Maria Wilma Barrias, who tell their stories in this report, have lived next to the depots since the late 1960s and early 1970s. When they moved to Pandacan, it was not densely populated but it has since filled up with numerous residents, including the workers of the oil companies that run the depots. These families cannot move back to the provinces they came from where it might be cheaper and cleaner because they are poor and their livelihood is in the city. They suffer from asthma, anemia, tuberculosis, primary complex (tuberculosis in babies), skin diseases, ulcers, broncho-pneumonia, colds, coughing, and other ailments. According to Tasker-Lynch, residents have also mentioned that many people in Pandacan have cancer, especially children.

II. Residents and Their Stories

A. The Martija Family

1. Aida and Family

Aida Martija and her family have lived in Pandacan since 1974. They live in a small house located in a poor and cramped section of Pandacan. Life for them is hard because many family members are sick and every day they fear that something could go wrong at the depots. Their fear is well-founded because of the accidents they talk about having lived through. However, they cannot relocate to a better place because their only viable livelihood is in the city.

Says Aida in Tagalog, "There's two families in this house consisting of nine people and most of them are sick. Six of them have asthma. Various members suffer from bronchitis, primary complex (tuberculosis in infants), broncho-pneumonia, anemia, skin diseases, intestinal disease, and ulcers. We suffer from a strange skin disease that seems like an epidemic. Is it every year that we get it?" she asks somewhat rhetorically of Janylyn Arroyo-Martija, her daughter-in-law.

The rest of the year, younger family members suffer from skin disease anyway. Janylyn Arroyo-Martija, says, "All of a sudden a bump will appear like he [my son] has been bitten, but I don't see any insect. My son scratches it and then he gets little scabs all over, even on his face and feet."

In 1979, the family says there was a gas leak that could have exploded at the depots. Everyone was terrified as they ran to look for cover. Aida had to search for her children later on since they had all scattered. The trauma of that memory still lives with them especially since Aida's children were very young at the time.

2. Aida and Janylyn's Observations About the Situation

There are many families like the Martijas that cannot relocate because they are too poor. Many of them, in fact, are workers at the companies that run the depots. Janylyn said that if they were to relocate to the province, they, like the Martija family, would have no livelihood as they have no farmland or fishing boat.

They name the schools that are close to the depot. The Polytechnical University of the Philippines (PUP) is in the next district and yet has reported foul-smelling substances from the depot. Even closer to the depot than PUP are the Carlos P. Garcia high school which is right in front of the entrance to Shell and the St. Joseph Parochial School which is near a Caltex filling station.

Aida and Janylyn told of the Barangay (Section) 835 daycare center which is estimated to be about 10 to 15 meters from the depot. The daycare was visited by a doctor from St. Lourdes Hospital and the family says that the results of the doctor's study showed that 30 out of 40 children at the daycare, or 75%, have anemia.

Janylyn says that in the event of a fire in Pandacan, firefighters focus on making sure the depots are secure because of the high risk posed by the flammeable materials. "For example," she says, "if there was a house burning, Petron would be affected right away. So the firefighters would focus on making sure Petron, and not the houses, are ok. They would pay attention to Petron first and let the houses burn."

When asked about the companies, Aida says that they don't do much to help the Pandacan community. "Sometimes Petron Foundation has a solicitation letter and I never do anything. I don't ever go to them or solicit from them. Even if you did ask of them, they'd only give a small amount."

Janylyn adds, "During Christmas and during fiestas, they do very little. They give small donations of about 1,000 pesos ($20 US) or a few thousand."

"The daycare was made by Petron through [Congresswoman] Sandy Ocampo. The politicians benefit from Petron by making a daycare in the Barangays," says Aida. "But maybe if there was a [people's] movement, we could make the owners of the company see. They are also people."

When there are leaks, Janylyn says, "…they don't say anything about what we are breathing, but many people become dizzy."

They don't complain because, Aida says, "Even if you do, nothing happens. They [the companies] just make excuses." The companies have made no comment about the illnesses that the residents are suffering. Aida just wants them to leave. Of course, a lot of money would be needed to relocate the depots, "…but it is better to spend the money than to have people roasted," Aida says.

She suspects that one factor that makes it so difficult to remove the depots is all the money that comes from the oil companies. She wonders why the Santo NiNo Church does not have a strong stand on the issue especially since it is right in the middle of Caltex. She thinks that the Church might receive a large donation from them. Property taxes paid by the oil companies also go to the government. Aida emphasizes, therefore, that a people's movement is needed in order to increase pressure to move. She complains that no one in the government does health surveys and yet it is clear from the health center records that there are too many sick people to just let things continue as they are. Overall, she says that the Mayor and a majority of the 37-member City Council want the depots relocated, but a people's movement is strongly needed.

This matter is urgent to the Martija family not only because of health problems but because they fear for their lives in the event of a terrorist attack. In Aida's words, the terrorists "…don't care who they get."

B. Ulpiano Basan, Former Worker at Caltex and Petron

Ulpiano Basan, a mason, worked at Caltex and then Petron in the 70's and 80's. It was he who closed the valve at Petron during the 1979 leak mentioned by the Martija family.

He says that just last year in 2001, "The students and teachers at Polytechnical University of the Philippines (PUP) smelled leaks from the depot. PUP is already far from the depot so of course it is even worse here [next to the depot]. They had to cut classes just because of that. They went to the hospital. It was on the radio and on TV. People were dizzy and vomiting. They smelled 'gasul' [liquefied petroleum gas (LPG)] three times in a span of two weeks. " The LPG leak could have ignited.

According to Ulpiano, during a fire, residents sometimes have to pay the firefighters in order to save their homes because the firefighters' priority is to ensure the safety of the petrochemical depots.

C. Lucera Castillejos and Maria Wilma Barrias

1. Lucera and Maria

Lucera Castillejos and Maria Wilma Barrias have lived in Pandacan since 1969. The number of residents has greatly increased since then and with the larger population have come many problems not only including the dangers of having so many households close to the depot but also drug addiction and the feeling that neighbors in the community don't know each other anymore. Health problems for the community abound.

Lucera said that the health of small children is especially affected by the depots. Young children are sickly and the elderly cough a lot. Residents suffer from asthma, coughs, colds, and allergies, various other respiratory diseases. Many of the 13 people in Lucera's and Maria's household suffer from coughs, cold, and allergies. Maria said that it hurts when she breathes in strange-smelling fumes from the depot.

When Lucera smells fumes from the depot, she says, "I become weak, my chest hurts, I get a cold and a cough."

Maria says that the symptoms Lucera named only last a short time but they also worry about what the chemicals are doing to their bodies in the long run. "It hurts, when it goes in. It seems to go in really deep. They use different kinds of chemicals. When they load gasoline, of course, it [the vapors] goes into the air. Others are used to it, so it has no effect on them. It's even more true of the gasoline. They inhale it and become intoxicated. It turns out they are [drug] addicts."

Lucera says, "When they clean the tanks, toxics come out into the air and the water in the [Pasig] river. Chemicals and poison come out. It also goes into the soil. The smell wafts out."

Maria said that what comes out of the tank "smells like penicillin." It hurts the chest when they inhale it.

Aside from suffering physical illnesses, fear and trauma also plague the residents. "Once a year, they have a fire drill. It's just a test. But of course, people who are new here panic and think there is a fire and that they are dead. Old-timers like us luckily know it's a fire drill," says Maria. When asked if advanced notice is given, she answers, "No. Just to the people inside. The workers. They should give us notice. When people hear the alarm, the new people living by the train tracks just gape at the tanks. People here have developed phobias. In 1988 there was a fire. About 4 Barangays were burned." She added that because Barangay 836, which is very close to the depot, was burning, they feared the depot would catch fire.

2. Lucera and Maria's Observations About the Situation

Lucera and Maria do their part to make things better in their community. They are members of Alay Kapwa and Families, Children, Empowerment, and Development (FCED) - community organizations that try to help residents in different ways. Alay Kapwa wants the depots out of Pandacan. FCED monitors the health of babies and their families. Despite their efforts at making life better, however, Maria complained, "That depot is an old issue. Even when I was 9 years old. Since 1969. They even changed their names. They've had about 4 or 5 names. Nothing's happened because the government is getting a big payoff [property tax]. They pretend to be negotiating, but not really. When the money comes out, the issue goes away. When a bundle of money comes out, it goes away. At least during elections, it comes out daily on tv. You really believe it."

Maria says that the person who really needs to act is the Mayor of Manila, Lito Atienza. Many are saying that the depots have to move in six months but she does not believe it can happen that soon. Maria also complained about lack of transparency in some of the dealings between the government and the oil companies. Of one particular meeting between Lito Atienza and some oil companies, she says, "We had no idea what they were talking about inside. Shouldn't those things be transparent to the community? All we saw was that on TV they had had negotiations. It should have been made clear." Lucera concluded that everyone needs to work together to solve the problems, not just government officials. (Though the local city government has held public meetings at which residents were present, Maria's comment makes the point that residents must be more aware and more involved and that the local government has a measure of responsibility in this effort.)

Maria says of the companies Shell, Caltex, Petron, and Mobil, "I think they only pay attention to their profit. Even if the people next to it have concerns, the priority is the company. You know when there was a fire here, the employees of Shell were locked up inside. They didn't let them out. The first place they fought the fire was inside instead of outside. They locked the doors. I know because my husband was working there. Putting out the fire at the depot was given priority before extinguishing it at the residences."

Lucera says that the companies don't do anything to help the community. "They do nothing except that they say are going to leave in 6 months. But nothing happens. The managers never says anything to the community like, 'OK, here is how you should prepare since we are leaving.' We wonder why they say they will go but nothing happens." By this time, she would have expected precautionary warnings and preparations regarding a move if it were really true.

III. The Players (Government, Business, and NGOs)

A. The Department of Energy (DOE)

Energy Secretary Vincent Perez of the DOE said that the DOE, Caltex Philippines, Inc, Petron Corporation, and Pilipinas Shell Petroleum Corporation agreed to prepare a Master Plan for relocating the depots. The study is supposed to be done within one year, meaning by the end of 2002 or beginning of 2003. Any major capital expenditures except those for the purposes of security, health, and safety are to be avoided. However, the community won't see complete removal of the depots until 2008, meaning it will have taken them 6 years to move.

As mentioned earlier in this report, 2008 is also 5 years after the deadline agreed to by the oil companies in 1993.

B. Oil Corporations - Pilipinas Shell Petroleum, Caltex Philippines, Petron Corporation, Mobil, and Unioil

Following are what the oil corporations have said regarding the depot issue, and regarding their health, safety, environment, and sustainable development policies and practices.

1. Petron

Petron Vice President for Supply and Operations Jose K. Campos said towards the end of 2001 that it is willing to cooperate with the government if depot relocation is determined necessary. Petron expects a relocation to cost P3 billion not including the costs of the new site and infrastructure needed (Petron had earlier said the move would cost P1 Billion [US $20 million] , but for some reason, increased their estimate for the cost of the move.) However, he said that the matter needed to be evaluated carefully.

It is good that Petron might be willing to move and so far has been the only oil company to say so, but how much more evalutaion is needed to show how obviously dangerous the situation is?

Petron's website says, "Pandacan Terminal's equipment, facilities, and procedures meet the most stringent international safety standards."

If the Pandacan terminal meets safety standards, why are Petron tanks and residences locates side by side?

Petron's website also says, "He [Campos] added that the Company is capable of handling any safety and environmental emergency and that they are always involved in fighting fires in the vicinity of the Terminal. He cited a recent fire in the residential community of Pandacan, which was extinguished by the industry's fire-fighting teams before the arrival of the fire department."

If homes, schools, restaurants, stores, barbecue vendors, and the depot tanks were not so close to each other in the first place, fires would not pose as huge of a threat as they do now.

2. Shell

In September 2001, after the September 11 attacks, Shell said that a risk study would need to be done to show whether "we really need to transfer or just improve our facilities."

Besides the fact that the situation in Pandacan is obviously dangerous, the oil companies already conducted a study in 1993 and do not need to do a new one according to Manila City Councilor Jocelyn Dawis-Asuncion. She said in late 2001 that the oil firms' most recent proposal to conduct a "comprehensive study" which could take 6 to 18 months is a delaying tactic. They conducted studies in 1993 on the possible transfer. "They considered the transfer eight years ago so all they need to do is to plug in current values and they have a study," she said.

"Shell aims to have a Health, Safety and Environment (HSE) performance it can be proud of, to earn the earn the confidence of customers, shareholders and society at large, to be a good neighbor and to contribute to the principles of Sustainable Development."

If only Shell would live up to this statement…

"Worldwide, it is the policy of each Shell company to: Have a systematic approach to HSE [Health, Safety, and Environment] management designed to ensure compliance with the law and to achieve continuous performance improvement."

Shell should comply with its agreement with the Ramos administration in 1993 to move by 2003 (see section V. of this report).

"In this light, Shell companies in the Philippines have made a commitment to: Pursue the goal of no harm to people; Protect the environment in a manner that is consistent with Sustainable Development and business viability; Publicly report our performance."

As we can see from Aida's, Lucera's, and Ulpiano's stories, people and the environment have been harmed for too long.

"Sustainable Development is a way of developing and safeguarding our reputation and it will help us develop our businesses in line with society's needs and expectations."

From this statement, it looks like Shell's priority in 'developing sustainably' is to gain good PR mileage for the company.

3. Caltex

"Caltex recognises the importance of: protecting the health and safety of its employees, contractors and customers, and the communities in which it operates; protecting and preserving the environment; ensuring the safe operation of its facilities; producing safe products; and meeting its social responsibilities."

If only Caltex would put its money where its beliefs are…

"To fulfil [sic] the intent, each Caltex Corporation subsidiary and Business Unit will: Comply with all applicable environmental, health, fire and safety laws and regulations and apply, consistent with industry best practice and Caltex' EHS Principles, responsible standards in the absence of appropriate laws and regulations…"

There is now an order from the Mayor of Manila to move by mid-2002 and still Caltex and the DOE say long-drawn out studies need to be done. Petron has already explicity stated it might be willing to move and has given an estimate for it, but Caltex has done nothing of the sort.

4. Mobil

Here are the practices Mobil engages in in Australia, a first world country:

Regarding soil remediation, Mobil's Australia website says, "It [Mobil] has well-tried procedures to contain or clean up leaks or spillages should they occur… In validating soil quality at operating sites (particularly those marked for closure), Mobil carries out a careful survey to check for liquids and vapours. Sometimes bore wells are sunk to obtain soil samples for laboratory analysis. Where soil is contaminated, a number of remediation techniques are available… In some extreme cases soil will have to be removed and replaced with clean soil. The contaminated soil… is taken to a location such [as] an approved landfill site where it can be remediated safely, with no possible impact on human health."

Would Mobil follow these practices in the Philippines, a third world country?

Regarding the Altona Refinery in Australia, Mobil's Australia website says, "When first established in 1946, the refinery was located several kilometres from the nearest residents, but urban spread has meant the Western suburbs industrial and residential communities are now inseparably linked… Coupled with increasingly stringent environmental requirements, there has thus been a dramatic increase in the community's environmental expectations… In a number of areas, the Refinery has consistently achieved better results than are required by various regulatory authorities. Since 1989, significant progress has been made in beautification of the refinery site through extensive tree planting programs. Waste water, atmospheric emissions and solid wastes have all been substantially reduced."

Altona sounds like Pandacan, except for the fact that communities in Pandacan are literally right next to the tanks. Similar to Altona, people in Pandacan have had an increase in environmental expectations and one can only hope these expectations will become stronger.

5. Unioil

As of this writing, no information was found on Unioil's environment, health, and safety practices. However, regarding its Pandacan facilities, Unioil does say on its website that, "At present Unioil's storage tanks are strategically located in Pandacan and Sta. Ana to facilitate the efficient distribution of products from Bataan to Manila."

Efficiency, it seems, does not take into account human health and safety. No mention of these or other environmental or health concerns could be found on Unioil's website.

C. Other players including Non-government parties (Note: this is by no means a comprehensive list)

1. Akbayan Citizens' Action Party - A citizens' political party with the aim of achieving greater participation of citizens and alternative social movement groups in the formal processes of government.
2. Alvin Estrada - spokesperson for the United Fire Fighters of the Philippines
3. Dick Gabac - Akbayan Citizens' Action Party'sa community organizer in Pandacan.
4. Aidan E. Tasker-Lynch - Executive Director of the Philippine Society of Emergency Medical Technicians and Training Director of the Life Support Training Institute. He has been involved in different sectors of the oil industry for 15 years, including his term as Chief of Emergency Medical Services for the Industrial (Petrochemical) City of Yanbu in Saudi Arabia. At present he is a consultant in emergency medical services to University of the Philippines (UP) / Philippine General Hospital (PGH).
5. Other groups including Caltex workers and their families and Bayan Muna (a national progressive political party "representing the national and democratic aspirations of the people, especially the poorest and most disadvantaged," ), have been working on the issue as well.

IV. Alternatives

There have been at least four sites named as possible alternatives to Pandacan. One is a reclamation area in Pasay city near the mouth of the Pasig River. There is the 500 hectare Philippine National Oil Company (PNOC) site in Bataan. Another is a 50-hectare island off the coast of Pampanga. The third is a reclamation site off the coast of Navotas. The Senate Representative of Malabon-Navotas, Ricky Sandoval, said he would welcome the depots and that they would boost the town's small fishing industry and generate more jobs. Some have said, however, that Navotas is a bad option since a depot there might pollute fishing waters and lead to a diminishing number of fishing jobs as well as make fish consumers sick.

V. Update

In a position paper presented to the Philippine Senate by Aidan Tasker-Lynch, he states that in 1993, a verbal agreement was reached between the government and the oil companies to phase out the depots over the next ten years. Instead of phasing out their operations however, Shell, Caltex, and Petron have actually expanded them. Now there is only one year left until the deadline. As stated earlier in this report, Manila City Councilor Jocelyn Dawis-Asuncion said that the oil firms' most recent proposal to conduct a "comprehensive study" which could take 6 to 18 months is a delaying tactic and that they already conducted studies in 1993 which only need to be updated.

Hopes were renewed in December 2001, when Manila City Mayor Lito Atienza signed an ordinance reclassifying the 32 hectare depot site from industrial to commercial. He said that the companies must transfer the depots in six months, meaning by mid-2002 or around June 30.

The oil companies have had almost similar reactions. Shell and Caltex said that a study would need to be done. Petron Corporation said it might be willing to move if the government deemed it necessary but that preparations alone for the master plan would take 6 to 12 months.

Mayor Atienza, however, rejected their position that it would take them at least 12 months just to study whether to move. Any oil company remaining in the area after the six-month deadline would face stiff penalties from his office. However, latest reports are that in January of 2001, oil companies filed a suit against Atienza.

VI. Analysis

Although Mayor Lito Atienza is firm in his stance on depot removal, the Department of Energy (DOE) and Petron, Shell, and Caltex have agreed to prepare a master plan for the relocation of the depots which could take a year to complete according to Energy Secretary Vincent Pérez, Jr. Implementation of the plan, however shall be done in phases within five years meaning that according to this plan, the depots will not be gone until 2008, five years after the deadline agreed to by the oil companies in 1993. This is also a very different deadline, unfortunately, from the one Atienza recently gave.

Promises have been made and, over time, have not come to fruition. The fact that then President Fidel Ramos and the oil companies had an agreement in 1993 to move the depots within 10 years was a step in the right direction, but Ramos could have pushed to have the depots move within 4 years since his term ended in 1998. That way, the oil companies would have been accountable to him and not to the next administration whose commitment to moving the depots he could not guarantee. Unless promises are made and fulfilled within the same administration (on any level of government), an agreement, especially a verbal one, can become an empty promise which functions as a vote-magnet for politicians and as a PR stunt and delaying tactic for other parties rather than an enforceable pact. Companies can continue their ways under new administrations whose susceptibility to either forgetting about the agreement or being swayed in favor of the oil corporations is always a large possibility.

VII. Conclusion

While the politicking continues in the upper echelons of the corporate world and government, people are suffering illnesses and fearing their own fiery deaths in the event of accidents or terrorist attacks. Will the relocation take another six possibly toxic years? Will the relocation happen at all? The September 11 attacks are what brought the issue once again into the public's eye and yet, in the tradition of Philippine political amnesia, the issue risks fading from memory. The oil companies, yet again, want to take advantage of this forgetfulness and complacency. The people and the government must seize this window of opportunity now to save thousands from illnesses possibly linked to the depots and from the threat posed by living next to it. The health, safety, and security of resident Lucera Castillejos, not to mention the thousands of others, are human rights that she shares with you and I - not privileges.

The people of Pandacan must be heard and be active in the campaign to relocate the depots because they provide the political will and are intimately aware of the situation. Mayor Lito Atienza's job is to represent his constituents and without their active support, he might not be able to achieve relocation of the depots.

All the residents interviewed want to prevent something similar to what happened in Chernobyl, Bhopal, or Mexico from happening in the Philippines. They agree that letting the world know what is happening will help their situation. One strategy is to conduct a letter-writing campaign to send a message to the oil companies and to government. International letter-writing could begin and increase pressure on the companies.

Education of residents is key. They can organize amongst themselves and with the experience and technical assistance of various groups, can educate each other about the situation.