Emano fears Global Crisis to affect Hanjin Shipyard construction in Misamis Oriental

October 29, 2008

By Lizanilla J. Amarga

Cagayan de Oro City former city mayor now vice-mayor Vicente Emano is worried that the fall of huge banks in the United States and around the world may just spell doom to all hopes of seeing Hanjin Heavy Industries and Construction Corp. (Hanjin) complete its planned $2 billion shipyard in Villanueva, Misamis Oriental.
Emano pointed out that Hanjin, despite its being one of the largest shipping firms in the world, cannot put up the entire $2 billion investment on its own.
He said Hanjin will still need to get what is called a “syndicated loan” from these international financial institutions.
“Pero tungod sa pagkahugno sa mga dagko nga bangko abroad, dako akong kabalaka nga basin dili makakuha ug kining syndicated loan ang Hanjin para mapadayon nila ilang proyekto diri sa atoa (But with the fall of these huge banks abroad, I am very worried that Hanjin might not be able to get this syndicated loan and push on with their shipyard here in our region),” he said over an interview with dxIF Bombo Radyo yesterday.
Emano said this may just be the reason that Hanjin will not return to Misamis Oriental despite how there are now reports that all its necessary permits are ironed out for its resumption of works at the Phividec Area this coming December.
He lamented how the project would have been the second largest Hanjin ship-making facility outside of Korea and will be hiring at least 40,000 local workers as well as create downstream jobs that will boost the local economy.
Emano said his efforts to conduct a trade mission abroad to help Pres. Gloria Macapagal-Arroyo convince this South Korea-based firm to invest here in the region and assure them of the locality’s peace and order situation may just come to nothing because of this global crisis.
“Dako kaayo kini nga ka-anugon sa atoa (This is huge loss for us),” he said
Last April 25, 2008, Hanjin Philippines Misamis Oriental project site managing director Myong Goo Kwon stopped all construction works of its $2 billion shipyard project at Phividec area, packed up and withdrew all their team from the area.
At that time there was no mention of the global crisis as Goo Kwon’s letter to Phividec Industrial Authority (PIA) administrator Nimfa Albania contained how their withdrawal is due to “numerous atrocities” committed against them specifically three major reasons: (1) Negative undue publicity both in Subic and in Mindanao; (2) Local disturbances in the operation of the project; and (3) Outstanding right-of-way clearance and unfavorable actions therefrom.