Manila: Cabinet members are confident that South Korea's Hanjin Heavy Industries and Construction Co will continue a $2bn shipyard project in Mindanao.
The Korean firm started site development last year but pulled out in April after a misunderstanding with local government officials.
Cabinet officials met in the far southern island of Mindanao yesterday to discuss infrastructure and other projects in Mindanao under the "super regions" strategy of the Arroyo administration.
While Hanjin's shipyard complex is not on the list of projects supporting Mindanao's agri-business efforts, it remains a major concern considering it was supposed to be the largest single private investment in Mindanao. The project was expected to generate about 40,000 jobs.
"Hanjin is investing here," Press Secretary Cerge M. Remonde told reporters.
The shipyard, supposed to be hosted by Tagoloan and Villanueva towns, is located inside the government-run Philippine Veterans Investment Development Corp. (Phividec) Industrial Estate.
Earlier, Misamis Oriental Governor Oscar S. Moreno said he was optimistic Hanjin would come back.
In an extended memorandum of understanding between Hanjin and the Phividec Industrial Authority that ended March 10, the Koreans were supposed to resume work soon.
Phividec administrator Nimfa Along-Albania earlier told BusinessWorld that Hanjin's return could ease the pressure on local labor as some locators have slowed down operations at the industrial estate.
Mr. Moreno, meanwhile, said the delay in shipyard project won't affect the development of the P5-billion Laguindingan international airport where Hanjin serves as lead contractor. [18/03/09]
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