PGMA witnesses signing of accord on $2-billion shipbuilding project

The Misamis Oriental Shipbuilding Complex is the second shipyard to be built by Hanjin in the Philippines. The Korean firm's first shipyard in the country is at Subic Bay in Zambales.

PGMA witnesses signing of accord on $2-billion shipbuilding project

Cagayan De Oro City, Misamis Oriental -- President Gloria Macapagal-Arroyo witnessed the signing of a Memorandum of Understanding (MOU) between Korean firm Hanjin Heavy Industries and Construction Co., Ltd. (HHICC) and Phividec Industrial Authority (PIA) on the construction of a US$2-billion shipbuilding complex here.

Signing for HHICC was the company's president Park Kyu Woon while Administrator Nimfa de Ocampo signed for PIA. Phividec is the acronym of Philippine Veterans Investment Development Corporation.

The President lauded the "billion-peso plus" investment, saying it would provide jobs and livelihood to some 40,000 Filipinos, especially those living near the shipbuilding facility.

She also said that the new investment clearly reflects the favorable outlook of the country in the international community.

"Foreign investment (in the country) has grown five-fold from 2003 to 2006 alone. It has continued to rise at double-digit rate in 2007," the President said.

"This surge of investments has been anchored by billion-dollar plus investments by several major international companies, not only Hanjin but also Texas Instruments in Clark, Marubeni and AES in the power sector and Mittal Global's upcoming integrated steel mill in Iligan City, among others," she added.

"The world is taking notice of the new Philippines that we are working hard to create. That is why Hanjin is bringing US$2-billion to Misamis Oriental," the President said.

Under the MOU, HHICC will establish a shipbuilding complex inside the 3,000-hectare Phividec Industrial Estate in Misamis Oriental (PIE-MO).

The Misamis Oriental Shipbuilding Complex is the second shipyard to be built by Hanjin in the Philippines. The Korean firm's first shipyard in the country is at Subic Bay in Zambales.

To be constructed in Park V of PIE-MO, the complex covers an area of approximately 440 hectares.

Phividec is a government-owned and controlled corporation established under Presidential Decree 538 as amended by PD 1491. PIA was established to develop and professionally administer the 3,000-hectare Phividec Industrial Estate (PIE-MO) located in the municipalities of Tagoloan and Villanueva in Misamis Oriental. (PIA)