Monday, March 26, 2007 4 ro-ro routes need investors
THE Development Bank of the Philippines (DBP) is looking for investors to venture into four missionary roll-on roll-off (ro-ro) routes to be established in Cebu this year.
The ro-ro routes are aimed to provide easy farm-to-market access in the Visayas.
The four roro missionary routes are: Liloan, Cebu to Jetafe, Bohol; Dumanjug, Cebu to Guihulngan, Oriental Negros; Santander, Cebu to Sibulan, Negros Oriental; and Santander, Cebu to Larena, Siquijor.
“We in the DBP are confident that these four ro-ro routes will enhance inter-island trade in the Visayas, and more importantly, help Cebu further improve on its position as the hub of economic activity in the south,” Reynaldo David, DBP president and chief executive officer said in a statement.
David said the four routes will be part of the 20 missionary routes that the bank is tasked to open this year to complete the 49 ro-ro connections under President Arroyo’s “Strong Nautical Highway Project.”
Liberalized
While the ro-ro terminal system is currently following a vertical route, the DBP nautical highway is positioning itself to go horizontal, David said during the DBP Cebu Roadshow held last Friday at the Waterfront Cebu City Hotel and Casino.
“We will be more liberalized in the credit terms,” he said, adding that the DBP will make its credit facilities more accessible to ship owners.
According to a press statement, interest rate for loans for the acquisition of roro vessels in the missionary connection is pegged at seven percent per year for the first two years.
Succeeding rates will be based on the Philippine Dealing System Treasury Rates. The vessels can serve as collaterals.
Repayment of the loan will be up to 15 years with a two-year grace period.
David said DBP is “willing to go and stretch out” as it recognizes the need of the business community for a long-term money market.
This is why, he said, the DBP is encouraging more investments in the ro-ro projects of the government.
“These facilities will bring our countrymen from far-flung areas to the mainstream of economic activities. The ro-ro will bring their goods and commodities from the farms to the markets in an easier and more efficient manner,” David said.
He said he is optimistic about the prospects of the project, especially since the Philippine economy is showing signs of continued development.
Ready
“With the economy on the ascent, it’s very clear that the time is now for all of us stakeholders to seriously get our acts together. DBP is more than ready to do its role in providing technical and financial tailwind to interested investors,” David said.
David also announced that the DBP is increasing its loan portfolio in Cebu this year to P3 billion from P2.9 billion.
This will be used to finance projects in shipping, water production and distribution, bus terminals, material recovery facility, solid waste management, public market, computerization of local government units, schools, dormitories, hotels, resorts and international airport.
The DBP has P44.2 billion in available funds to support projects in infrastructure and logisitics, social services, micro and small medium enterprises, environment, and commercial lending.
DBP, a government-owned bank, is the largest universal bank in the Philippines. It has 77 branches nationwide. It is celebrating its 60th anniversary this year. (MMM)
