Marina and DBP sign agreement to advance maritime sector
6 July 2022
The state-run Development Bank of the Philippines (DBP) and the maritime industry authority (MARINA) have joined forces to develop financing options for the shipping sector.
In order to establish a credit program that business players in the industry can use to finance strategic initiatives, MARINA yesterday announced that it has signed a memorandum of arrangement (MOA) with the DBP.
The MOA was signed on behalf of each agency by Nannette Villamor-Dinopol, deputy administrator for operations at MARINA, and Emmanuel Herbosa, president and CEO of DBP.
According to Dinopol, MARINA signed into the arrangement to obtain the funding the sector needed for its modernization drive. The Maritime Industry Development Plan (MIDP), a 10-year plan for enhancing domestic shippers, is being implemented by MARINA.
According to the MOA, MARINA must collaborate with the DBP to create financing options that private companies and shipping cooperatives can use for both new and expanded projects.
Additionally, the agreement requires the DBP to make credit lines available to advance maritime sector stakeholders in accordance with the MIDP’s priority initiatives.
Between 2019 and 2028, MARINA will need P94.57 billion to fulfill the eight MIDP objectives and modernize the industry’s various infrastructure.
According to the MIDP, the private sector would bear around 92% of the cost through direct investments and credit agreements with financial organizations like the DBP, while the government will cover the remaining 8% through budget appropriations and foreign grants.
Specifically, P45.73 billion and P45.16 billion are needed for the creation of a worldwide maritime hub and the modernization of domestic shipping, respectively. On the other hand, P2.64 billion is required for the construction of the coastal and interior waterways transportation system.
The remaining P1.04 billion in projects is needed to meet the need. Building a marine innovation and information hub, enhancing maritime safety in the Philippines, and enhancing shipping services for advance maritime sector tourism are some of these initiatives.
The DBP, the country’s fifth-largest bank, concentrates its loan support in four important industries: infrastructure and logistics; micro, small, and medium-sized firms; the environment; and social services and community development.
