DBP lends P4.17 billion to local shipbuilder

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) has provided a P4.17 billion loan to a local shipbuilder to support the expansion of the company’s shipyard in Albuera, Leyte.

In a statement, DBP president and chief executive officer Emmanuel Herbosa said the bank signed a term loan agreement with Megaship Builders Inc. (MBI) to upgrade and increase the capacity of its shipbuilding complex.

In particular, Herbosa said loan proceeds would be used to finance the construction of the shipyard’s second and third slipways, office building and other support facilities.

“Once completed, this shipyard expansion project is expected to increase the capacity of the shipyard from 10,000 deadweight tonnage (DWT) to 200,000 DWT, thus accommodating an average of 10 vessels per month from the current two vessels per month,” Herbosa said.

Through the loan, the DBP wants to help address the lack of viable shipyards that can accommodate the growing number of vessels in the country, DBP executive vice president for development lending Jose Gabino Dimayuga said.

Currently, the Philippines has a ratio of 204 vessels to one shipyard, he said.

Dimayuga said it was imperative for the Philippines to enhance its transport infrastructure and logistics facilities to promote the seamless movement of goods.

This, he said, could create growth opportunities for the local economy, especially those located in coastal areas.

“There is tremendous potential for the Philippines to unlock the intrinsic value of its shipbuilding industry as the country has both strong demands for smaller vessels in the domestic market and is presently is an exporter of large, commercial ships for the international market,” Dimayuga said.

Currently the seventh largest bank in the country in terms of assets, DBP provides credit support to four strategic sectors of the economy, including infrastructure and logistics, micro, small and medium enterprises, social services and community development, and the environment.

From January to September last year, the bank released P374.85 billion in loans to various sectors, nearly 14 percent higher than the previous year’s P329.07 billion.