Vol. XXII, No. 16 [ BusinessWorld Online ]
Monday, August 18, 2008 | MANILA, PHILIPPINES
CAGAYAN DE ORO CITY — The Philippine Veterans Investment Development Corp. (Phividec) Industrial Authority is determined to clear industrial areas in the towns of Tagoloan and Villanueva to give way for the return of South Korean industrial giant Hanjin Heavy Industries and Construction Co. Ltd. next month.
The $2-billion shipyard project, which will cover 441.8 hectares, was supposed to start early this year after the signing of a memorandum of understanding between Hanjin and Phividec officials, witnessed by President Gloria Macapagal-Arroyo in January. Project activities, however, were suspended in May due to problems with local government executives hosting the proposed shipyard.
"We extended the memorandum, which will expire on Sept. 10," said Phividec administrator Nimfa Along-Albania last week.
The agreement was originally good only until last week, Aug. 10. "[The extension will] to allow us to move more than 800 families to the relocation site," noted Ms. Albania.
Hanjin officials, who have declined interviews with the media amid several controversies the company had figured in, have yet to issue an official statement on their plans to resume operation in Misamis Oriental.
But Ms. Albania said she was in constant communication with Hanjin officials with respect to resuming operations at the state-run Phividec industrial estate.
Various concerns and issues had resulted in the suspension of Hanjin’s initial work for its shipyard project.
These included the relocation of residents in the area and problems with local government units of two towns, including allegations that an executive of the Korean firm had tried to bribe town officials on quarrying activities that would supply gravel needed at the project site.
Local government officials, however, said they had realized there was no bribe offer and that there was only a misunderstanding during a dialogue involving supply of gravel from the two towns.
"There were communication gaps and we only need regular communication to address the concerns and issues," Ms. Albania told BusinessWorld.
She said trainings were ongoing for the residents who would likely be hired for the project. Ms. Albania noted that from only 30, the number of trainees has increased to about 100 with some now temporarily employed at Hanjin’s shipyard complex in Subic, Zambales.
During a public consultation early this year, Eduardo Rubic, Hanjin Heavy Industries Corp.’s local project coordinator, assured residents of the towns of Villanueva and Tagoloan that they would get top priority in hiring workers for the project as long as they have the skills.
"The [locals] found out that more jobs are available; there are many job opportunities opening for the residents," said Ms. Albania, noting that the agency was coordinating with the local and provincial government units in developing the relocation site.
An elementary school is being constructed at the new communities being put up for those who would be relocated.
Ms. Albania said that whatever plans Hanjin has, her agency is expecting to sign the lease agreement with the Korean firm by September.
"I will have a meeting with Hanjin officials next week to discuss how things are and to update them that the site is cleared for them to come in and we’ll discuss what our next steps are," said Ms. Albania. — Geefe P. Alba
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