CAGAYAN DE ORO CITY, Philippines - President Gloria Macapagal-Arroyo and other government officials scrambled into action Wednesday to dissuade South Korean Hanjin Heavy Industries Construction Co. Ltd. from withdrawing the construction of the $2-billion shipyard facility in Villanueva, Misamis Oriental.
Arroyo met with Misamis Oriental Governor Oscar Moreno; Administrator Ninfa Albania of the Philippine Veterans Investments and Development Corporation (Phividec); Secretary Serge Remonde of the Presidential Management Staff, whom the President has designated as the secretary-in-charge for the Hanjin project; Undersecretary Boy Ibarle of PMS; Presidential Assistant for Northern Mindanao Jojo Popos; Tagoloan Mayor Paulino Emano; Villanueva Mayor Juliet Uy; Misamis Oriental 2nd District Representative Bambi Emano; and Northern Mindanao Regional Development Council Chair JJ Romualdo in Lumbia airport late Wednesday afternoon.
The huddle came after Hanjin managing director Myung Goo Kwon sent a letter to Albania expressing their desire to withdraw from the project.
"We are constrained to take this in view of the numerous adversities that beset the company's initial operations, to wit; negative and undue publicity of Hanjin projects both in Subic and Mindanao; local disturbances in the operations of the project; outstanding ROW (Right of Way) clearance and unfavorable actions therefrom," A Philippine star report quoted Myung.
Elisa Pabillore, Misamis Oriental Department of Trade and Industry (DTI) director said a pullout by Hanjin would have "serious ramifications" to Cagayan de Oro, Misamis Oriental, and the country's image of haven for business investments in Asia.
"It would take years to rebuild a shattered image. A damaged credibility is one of the many potential ramifications that would materialize in case Hanjin pulls out its investment," Pabillore said.
President Arroyo met with the officials before she went back to Manila after spending two days in Camiguin and Cagayan de Oro to inaugurate the Second Strong Republic Nautical Highway project. The meeting lasted for at least 30 minutes at the pre-departure lounge of the Lumbia airport.
Governor Morena in a statement said: "Instead of looking back and resort to finger pointing, we need to look forward and learn from the lessons of the past. I appeal to everybody to cooperate in insuring that this project will be completed and realize our dreams."
"I am not at liberty to disclose everything that was discussed but suffice it to say that the President, in no uncertain terms, urge the group not to lose the Hanjin investment," he added.
One of Hanjin's headaches -- an executive order from Tagoloan town Mayor Paulino Emano that seeks to stop the construction -- was solved Wednesday after Emano and Villanueva town Mayor Juliette Uy relented.
Emano and Uy gave Hanjin the go signal to continue the construction after a lengthy discussion with PMS Usec Ebarle Wednesday afternoon.
"The dialogue (with Ebarle) opened the way for a much clearer understanding of certain points and issues raised by the concerned local executives," said a statement from the Department of Interior and Local Government (DILG)-Northern Mindanao office.
Emano earlier ordered Hanjin to stop the construction of the shipyard because the Korean firm failed to secure a municipal building permit and an Environmental Clearance Certificate (ECC).
On Wednesday, the Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources (DENR) issued a permit that would allow the Korean firm to put up fences around its facility in Tagoloan and Villanueva towns.
Most of the Hanjin staff in Villanueva had gone back to Manila according to Divine Lagdamen, head of the Phividec corporate planning department, but she said she got assurance that they would be coming back.
"Yes there is a work stoppage, but Hanjin is not closing down the project. The company's Korean staff has already gone back to Manila where they are based, but they will return once the project resumes," Lagdamen told Sun.Star Cagayan de Oro.
Lagdamen said Hanjin officials told Albania that the work stoppage is "only temporary." She estimated that Hanjin have cleared 20 percent of the 441 hectares it will used for it's shipyard facility in the towns of Tagoloan and Misamis Oriental.
Hanjin said the $2-billion facility is expected to employ about 45,000 people -- including engineers, welders, fabricators and administrative personnel -- within the next three years, when the shipyard is expected to become fully operational.
"Recently there are a series of investigations and hearings by the Senate and everyday there are articles in the media denouncing and condemning Hanjin. Nobody refers to the brighter side such as more than 10,000 employment," Hanjin said in a press statement.
Still, there are other problems that hound Hanjin in its construction of its Misamis Oriental shipyard facility.
DTI-Northern Mindanao Director Alicia Eusena said the shipyard facility does not have yet the approval of the Philippine Economic Zone Authority (Peza).
Without the approval from Peza, Eusena said Hanjin will have to pay taxes to the Municipal Governments of Villanueva and Tagoloan.
The Senate is investigating Hanjin for construction a condominium right in the middle of a forest in Subic, Olongapo City.
In Misamis Oriental, hundreds of affected residents complained of poorly constructed resettlement site and non-payment of their farm products after their houses were torn down by bulldozers to make way for the construction.
Two villages -- barangays Tambobong and Balacanas -- will be destroyed and will exist no more this year. At least 6,000 residents, mostly farmers, will become homeless. - Sun.Star Cagayan de Oro
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