DBP signs multi-billion credit deal with local shipbuilding firm

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    State-owned Development Bank of the Philippines (DBP) has granted a P4.17-billion term loan to Megaship Builders, Inc. (MBI) to upgrade and expand its shipbuilding and ship repair complex in Albuera, Leyte, a top official said.

    DBP President and Chief Executive Officer Emmanuel Herbosa said that the loan proceeds will be used to partially 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 ofthe 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.

    MBI started operations in June 2016 and is engaged in shipbuilding, ship repair, design, construction, outfitting and launching of any type of vessels or watercraft.

    It is also the first shipbuilding and drydocking company in the Visayas that utilizes marine airbag technology in drydocking vessels – a departure from the traditional common carriage-type method.

    DBP Executive Vice President for Development Lending Jose Gabino Dimayuga said the project would help address the lack of viable shipyards that could accommodate the growing number of vessels in the country, which presently has a ratio of 204 vessels to one shipyard.