Arroyo asks Hanjin to stay in Misamis Oriental
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.
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.
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.