A portion of the massive shipyard in Subic Bay | HHIC-PH File Photo
NEW YORK- After three years of several meetings and challenges at its early stages, agreements on the Subic Bay shipyard have been concluded.
Philippine Ambassador to the U.S., Jose Manuel G. Romualdez, hosted a diplomatic reception at the Philippine Embassy to celebrate the occasion and the solid and enduring relations between the Philippines and the U.S. At the same time, he welcomed the Philippine delegations to the World Bank and IMF Spring meetings.
“The completion of the Subic Bay shipyard will redound to benefits for the country, bring jobs to the local communities, increase economic activity, and at the same fortify our strategic security measures. Working with the United States on this project will help ensure that we are able to protect our interests not only for our country but the whole region,” Ambassador Romualdez said.
The agreements involved the acquisition of the Subic Bay shipyard, which Hianjin Heavy Industries, a South Korean company, had abandoned after declaring bankruptcy in 2019. The company reportedly left several Philippine banks, including the Land Bank of the Philippines, with more than $412 million in debts and an additional $900 million from Korean banks.
Hanjin Heavy Industries and Construction-Philippines, Inc. (HHIC) started operating the shipyard in 2006 at the Subic Bay Freeport Area, a former US military base. It became one of the biggest shipbuilders in the Philippines before its collapse in 2019.
The ambassador also expressed his appreciation to Philippine and U.S. government officials, and officials of Cerberus Capital Management, for their support and efforts that led to the conclusion of the agreements. Co-founder and co-CEO Steve Feinberg represented Cerberus Capital Management, top executives Greg Metro and Alex Benard.
Foreign Affairs Secretary Teddy Locsin said, “With less than two months left to the Duterte administration, there is no better finale to all the work done to strengthen our ties with the United States than to see the ink on the paper of the biggest public-private partnership in the 75-year history of Philippine-US relations.” He also underscored the role played by Ambassador Romualdez in finalizing the project.
Finance Secretary Carlos G. Dominguez III also expressed his appreciation to Philippine and U.S. government officials and Cerberus for initiating and completing the deal. He said the project had challenges in the early stages but was overcome through the support of all sides.
Mr. Steve Feinberg, Co-Founder and Co-Chief Executive Officer of Cerberus Capital Management, expressed his appreciation to the Philippine and U.S. governments for their invaluable support in ensuring the conclusion of the agreements.
Secretay Locsin noted that the conclusion of the agreement is the most significant public-private partnership in the history of Philippine-U.S. relations.
“It (the agreements) will undoubtedly redound to the benefit of the Philippines and the people because of the thousands of jobs generated, not to mention increased economic activity,” Ambassador Romualdez wrote in his commentary.”I am also hopeful that this project will bear the fruit of our efforts for generations to come and that our collaboration with the United States on this one will result in a much stronger alliance.”
