Philippines government confident Hanjin will return to Mindanao

Philippine 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 recently 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.

In an extended memorandum of understanding between Hanjin and the Philippine Veterans Investment Development Corp. (Phividec) Industrial Estate that ended 10 March, the Koreans were supposed to resume work soon.