THE $24-billion industrial park project in Malita, Davao Occidental was cancelled due to land use issues.
The termination of the project was announced at Marco Polo Hotel-Davao in a company-initiated forum, a day before the scheduled groundbreaking ceremony.
The project was categorized under a Public-Private Partnership (PPP) scheme between the provincial government of Davao Occidental and Pionaire Finance Limited, a Hong Kong-based firm.
Maydeeh Libago, executive assistant of Pionaire Finance Limited, told reporters on Thursday, October 26, that legal and land use plan inconsistencies triggered the project cancellation.
"It is actually the legalities... the land use, the one that was offered to us was actually owned by another, so we cannot use it. The land that they offered is not yet ready for development, we cannot afford delays because we have also our timeline to follow to avoid financial losses," she said.
However, she underscored that the project will still be realized in another location - Barangay Kaputian, Banaybanay, Davao Oriental.
The project, which is dubbed as "Marina and Industrial Park" will be composed of 1,200 megawatt (MW) liquefied natural gas (LNG) combined cycle power plant, chemical industrial park, water-generation manufacturing facility, LPG & Storage Terminal, 20 million metric tons refinery, Petrochemical Complex, and a storage facility together with an associated Terminal and International Port and Cargo Terminal.
"We already have the commitment of the province's governor, Nelson Dayanghirang. We will coordinate with our new provincial government partner and do all the necessary permits and licenses to meet our timeline. We hope to break ground the project sometime in the first quarter of 2018 and finish it within two years," Libago added.
The project in Davao Oriental will rise in a 1,000-hectare area. Representatives from both parties had its first site visit on October 26.
"Yes, the project will be smaller compared to what we envisioned in Occidental but basically our requirement is just 1,000 hectares," she said.
The project, she added, will generate thousands of jobs and economic growth in Davao Oriental.
Dayanghirang, who was present during the forum welcomed the investment lead and is hoping that after a thorough look into the project, it will push through.
Libagon underscored that the location in the new site is ready as Davao Oriental has already done with its land zoning as compared to Occidental which is still considered as "baby province."
Davao Occidental is a year-old province inaugurated last June 30, 2016.
"Well, Davao Occidental did not categorically said that they are pulling out from the project or we can't afford to not follow our timeline. Remember we are on the investor side, we have to move fast because we've been dealing with this for 10 years in study," she said, adding that they are not closing doors for Occidental as a viable investment location in the future.
Rommel Abital of Edison Development and Construction, who flew from Manila to attend the supposed groundbreaking ceremony as business partner, was dismayed by the outcome but understands the situation.
"The company already explained and we understand. We are a little bit not happy for what happened because we flew here for just that, but we are still hoping that with the new location, the project will push through because we believe it really is beneficial to us all," Abital shared in a separate interview.
Meanwhile, the provincial government of Davao Occidental has scheduled a press conference in Malita town on Saturday, October 28, to air their side and come out with its official statement.