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Goverment readies aid for shipyards

Goverment readies aid for shipyards
Genivi Factao September 9, 2020

The country’s shipyard industry was assured of an economic stimulus package that would help them recover from losses incurred due to the pandemic, according to the Maritime Industry Authority (Marina).

Marina Administrator Robert A. Empedrad said they were helping the shipbuilding and ship repair industry in alleviating their plight caused by the pandemic. He said shipbuilders were regarded as key personnel because shipyard employees who were unable to work have caused delays in the completion of the projects.

“We received some economic package to be able to provide loans to shipyard operators to beef up the requirements of the shipbuilding industry,” he said, adding that they were in a constant meeting with shipbuilding and ship repair association.

It was not however specified how much the government, in this case through Marina, has allocated for the shipyard operators. Empedrad assures that they will be completing the necessary procedural matters and will soon come out with an announcement and a memorandum circular.

According to the Shipyards Association of the Philippines (SHAP), it needs an emergency soft loan for shipyards and boatyards amounting to P1.456 billion.

Class A shipyards, with 7 registered companies, would require a total loan amount of P350 million; Class B with 14 shipyards, P280 million; Class C with 98 companies, P686 million; boatyards with 140, P140 million.

Engr. Ramon Hernandez of the Shipyards Regulation Service (SRS) said shipyards were mostly hit during March and April due to lockdown. For two months, they were unable to work and were not paid by their clients.