High-Rise Project Delayed: Construction Company Ordered to Restructure
By Amritha Alladi • Pacific Daily News • July 5, 2010The construction of the Emerald Oceaniew Park condominium project in Jonestown, Tamuning, has been delayed about 90 days as a result of a government-ordered restructuring by South Korea, where the builder has its headquarters.
South Korea-based Hanil Construction and Engineering Korea was one of a handful of building companies selected for "work out," a restructuring to include more oversight by the South Korean government, confirmed David Tydingco, senior vice president for Younex Enterprises Corp. on Guam.
Younex International is the developer for the Emerald Oceanview Park. Younex Enterprises Corp., which is a separate and distinct special purpose entity, is a consortium of companies that include STX Construction Korea, Orix Japan, and the Military Mutual Aid Association of Korea, according to the corporation.
"What I understand is there have been a number of construction companies in Korea that have overbuilt housing, so what has happened is a number of construction companies that were actually closed down by the government had the inventory taken by the government for public housing," Tydingco said.
Hanil was one of nine companies allowed to restructure with government support, a press release stated.
On Guam, Hanil Construction Co. Ltd. is the general contractor in charge of constructing the Emerald Oceanview Park Verace on the Jonestown cliff line.
Four condominium towers and 20 villa-style luxury homes will be built at the site as part of the project, which has been estimated to cost $100 million, according to Pacific Daily News files.
The condominium project was planned, in part, in anticipation of a larger population on Guam stemming from the military buildup, according to Pacific Daily News files.
About 8,000 Marines and their 9,000 dependents are scheduled to relocate from Guam to Okinawa by 2014. The relocation of those Marines will begin as early as November, according to Pacific Daily News files
Tydingco said they found out about the restructuring last week, but the projected target is to have the development completed next year, as planned.
"We need to determine our Hanil situation and decide whether we proceed with them, see if the project is on schedule," Tydingco said.Workforce village
As for the Ukudu Workforce Village adjacent to South Finegayan that's supposed to accommodate about 18,000 temporary workers, Tydingco said the project is on schedule to be completed by November and hasn't been affected by the Emerald Oceanview Park issue. The first 2,000 beds are expected to be available for occupancy by October 2010, according to Pacific Daily News files.
So far, it is the largest planned worker housing facility; the 75-acre facility would sit on a 252-acre property on the borders of Tamuning and Dededo.
It would operate as if it were its own village, providing workers three meals a day, transportation to and from work sites and non-work activities, a 24-hour medical clinic and security/fire response capability, organized recreational activities, religious services, laundry services, banking services, convenience stores, and other ancillary services, Tydingco said in December.