West Tower saga continues; FPIC replies

Last August 11, I wrote about the side of the West Tower Homeowners Association who were forced by the Makati City government to leave their condo units because of the fuel leak in the basement from the pipeline of the First Philippine Industrial Corp. (FPIC) and the danger of a fire. They are now living elsewhere, either with their relatives or renting rooms.

Anthony Mabasa, president and COO of FPIC, wrote a letter to me in reaction to the column. In the interest of truth and fair play, I quoted from the letter in last Monday’s column. This is a continuation of that letter which I have summarized because of its length.

According to the FPIC letter, the rehabilitation of the building’s affected areas can be completed, “hopefully,” within the year and the residents can return to their units, as may be allowed by the proper authorities.

However, the West Tower Condominium Corp. decided that FPIC is no longer allowed full access to the lobby, hallways, roof deck and elevators, but is allowed only in the basements. Prior to this directive, FPIC, under no obligation but out of goodwill, and at considerable effort and expense, restored power in the common areas, repaired the leaking water pipes which supply potable water to the individual units, cleaned up the lobby, corridors and roofdeck, and checked the elevators, allowing residents safe and easy access to their units. Having been prohibited to continue with these will cause inconvenience to the other residents who wish to return to their units.

FPIC admits that it has no control over the prerogatives of the West Tower Condominium Corp. and the residents. They can only hope for the residents’ full cooperation to complete the rehabilitation program. After all, FPIC’s main objective is to get the building safe and habitable for the residents to return home.

Meantime, the remediation or the retrieval underground of the remaining fuel outside West Tower can continue for a period of three to five years, hopefully with minimal hindrance from the remediation activities. Residents of West Tower and the other affected areas in Bangkal can go on with their lives normally.

It is not true that the “remediation has not yet started.”

Since the company has stopped operating the white oil pipeline and prior to the issuance of the writ of kalikasan, FPIC already focused its efforts on the recovery of the fuel that leaked into the ground. FPIC immediately hired CH2MHIL, an internationally known environment remediation specialist, to provide the intermediate and permanent technology solution in Bangkal’s affected areas.

From the fuel recovery wells in place, about half of the 1.8 million hydrocarbon plume has already been recovered. FPIC and CH2MHIL will further put in place a US-fabricated multi-phase extraction (MPE) system to recover the remaining fuel underground in the next three to five years.

FPIC also denied that it has offered “a relocation package” of P6,300 per sq m for lessors and P10,800 per sq m for resident owners of West Tower, while the market values in similar condos range from P80,000 to P100,000 sq m. Though FPIC has no basis to confirm these reported market values, it has data that the purchase price for West Tower units should only be around P18,000 per sq m. Unfortunately, FPIC is not in a position nor is under any obligation to purchase the building from West Tower residents.

Instead, as a gesture of goodwill and intent to help the residents, FPIC offered financial assistance based on the prevailing market value for lease rates for a building such as West Tower within the vicinity to answer for the residents’ cost of relocating and/or renting another unit of similar value during the period that they have had to settle in alternative residences. FPIC also offered to pay the association dues and special assessments from July 2010 to December 2011.

The reasonable offer which the residents may consider while FPIC completes the rehabilitation of the building’s basements amounts to P60,000 per month for a 100 sq m unit, for example, or a total of P1,080,000 for 18 months, including association dues and the P100,000 gratuity.

Mabasa said they are thankful that 25 residents who own 27 units in the mid-sized condo are reasonable and kind enough to accept the offer while five more signified interest in availing themselves of the assistance.

Mabasa also stressed that though unfortunate, the incident was not desired. Even in the absence of any findings of its liability, FPIC nonetheless took positive steps in addressing those who have been affected. FPIC has utilized, as it continues to utilize, all available resources and the best possible expert advice to rehabilitate the West Tower basement and remediate the environment.

All told, maybe it is about time we gave credit to FPIC for being socially responsible and remaining committed to exhaust their resources in ensuring a well-implemented strategy to restore West Tower and Bangkal’s affected areas as best as it could.

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To Mr. Mabasa: Why don’t you talk to the West Tower unit owners. They told me they have been seeking to negotiate with FPIC but its officials refuse to talk to them. The unit owners are not ogres. Much can be achieved through negotiations. Sooner or later, the two sides will come to a meeting of the minds and come to an agreement. How about it?