President Arroyo on Thursday led the ground-breaking rites of a $40-million 10-storey Donggwang Korean construction project at the Clark Freeport in Pampanga.

Mrs. Arroyo, who was guest of honor and speaker, was welcomed by Clark Development Corporation (CDC) President Benigno Ricafort and Donggwang Clark Corporation (DCC) Chairman Shin Kun Lee, local officials and other officers of CDC and Donggwang firm.

The $40-million building of the Korean construction firm was located in a 1.69-hectare mixed-use property development.

Ricafort said the proponent expects about 500 job opportunities to be available for local residents along the Metro Clark Area and in neighboring towns and provinces in Central and North Luzon.

The ground-breaking was an offshoot of the signing of agreement between Ricafort and Shin Kun Lee during President Arroyo’s state visit to Korea last May where she attended the ASEAN-Korea Leaders’ meeting.

The construction of the building is phase one of a huge tourism project that the Korean firm will establish at the Next Frontier in Sacobia Valley in the Freeport Special Economic Zone.

The CDC reported of the planned $150-million resort complex to be constructed at the Next Frontier area, which will initially employ 1,000 workers.

The site development planning of the project is ongoing, adding that construction will start upon CDC’s approval of the development plans.

Earlier, the Korean firm also informed the CDC that an estimated cost of P218 million will be poured in for the construction of a 1.8-kilometer Spine Road and the 4.5-kilometer East Road 2 connecting the Next Frontier to Luzon’s main road, the McArthur Highway.

These roads are in support of the 300-hectare tourism estate to be developed by Donggwang in the Next Frontier area.

The road projects will be built “with no cash out” on the part of the CDC “and will be considered as advance lease rentals following standard government procedures. DCC is the mother company of Donggwang Clark Corporation, of the largest construction companies in South Korea, boasting of a total asset amounting to 1.2 trillion won or $945 million.

Also in Pampanga, President Arroyo on Thursday ordered the Department of Public Works and Highways (DPWH) to speed up the repair and rehabilitation of several dikes, especially the dredging of the Pasac River in her hometown, Lubao.

Mrs. Arroyo issued the order during the capsule-laying ceremony for the establishment of the P6.75-million San Jose Gumi Potable Water System Project designed to benefit more than 1,800 residents in Barangay San Jose Gumi.

The repair and rehabilitation of the dikes especially the Pasac River dredging project are expected to minimize floodings in the towns of Mexico, Sto. Tomas,  Minalin, Macabebe,Masantol, Guagua, Sasmuan, and the City of San Fernando.

She also ordered the DPWH to prioritize repair of dikes and desiltation of water tributaries to facilitate the flow of water and limit damages to residential and agricultural areas, which run up to billions of pesos every year in the province.

Based on projects data, the Pasac River dredging project falls under the P900-million Mt. Pinatubo Hazard Urgent Mitigation Project, which is funded by Japan International Cooperation Agency.

DPWH Director Philip Menez explained the dredging project will be finished in six months by accelerating the desilting work on the 19-kilometer stretch between Guagua and the mouth of Pampanga river.