MANILA, Philippines - The Maritime Industry Authority (Marina) is in talks with the Development Bank of the Philippines (DBP) to provide incentives to small and medium shipbuilders to make them more competitive.
In a press conference, Nicasio Conti, deputy administrator for planning at Marina said the agency is currently in discussions with DBP to open a credit facility for small and medium scale shipbuilders making ships for the domestic market.
“We are proposing incentives so they (small and medium-sized shipbuilders) can become competitive,” Conti said.
As DBP is already extending loans to ship owners, Conti said the same could be provided to shipbuilders with capital amounting to P50 million to P100 million and would produce for companies using vessels for the local market.
“Many companies already benefit in terms of owners’ side. What we want is for the shipbuilding side to benefit too,” he said.
The proposal is also being pushed to allow small and medium players to modernize.
The country is currently known to be among the largest shipbuilders worldwide due to the presence of big companies such as Tsuneishi Heavy Industries and Hanjin Shipping in Cebu.
Aside from DBP, Conti said the Marina would also want to start talks with other government financial institutions to open a credit facility for small and medium shipbuilders in the future.