The Japan Bank for International Cooperation (JBIC) has extended for another two years its loan assistance to the local shipping sector, through the Domestic Shipping Modernization Program (DSMP).
Development Bank of the Philippines (DBP) assistant vice president Fausto V. Aragones, Jr., in a telephone interview told PortCalls the bank is preparing
for another loan signing with the agency which will amend the existing contract for the remaining funds.
A policy-based lending program of the government, the DSMP was originally scheduled to lapse this month. The new contract will stretch the program up to January 2007. DBP is the program's executing agency and JBIC the financier.
The project extends medium- to long-term loans to private shipowners and ship repair companies engaged in the domestic shipping industry with the aim of supporting the purchase and repair of shipping vessels used for interisland transport.
The program also supports shipping-related industries including maritime education, cargo handling and terminal and port operations.
Aragones said DBP started negotiations for the extension of the project in the last quarter of the year. "We received confirmation of the approval two weeks ago,"
he said.
He disclosed remaining funds under the Sustainable Logistics Development Plan, the investment program which funds the establishment of infrastructure for promotion of the ro-ro, cold storage and grains highway, is still at P5 billion as of year-end.
"We are expecting more (loan) applications next year, especially with the implementing guidelines of the Domestic Shipping Development Act now in place. There is much bigger room for investments," he noted.
Aragones disclosed the DBP is still negotiating with JBIC for additional funds for the DSMP. "The proposal for additional funds incorporated two more components
– power and infrastructure," he noted, adding a large chunk of it will still be directed for the DSMP.
He said the loan may be disbursed by the early part of 2006.
