Development Bank of the Philippines granted a P4.17-billion loan to Megaship Builders, Inc. to upgrade and expand its shipbuilding and ship repair complex in Albuera, Leyte
The loan will partly finance construction of the shipyard’s second and third slipways, office building, and other support facilities
The expansion project is expected to increase the shipyard’s capacity from 10,000 deadweight tonnage to 200,000 DWT to accommodate an average of 10 vessels per month from the current two per month
MBI is the first shipbuilding and drydocking company in the Visayas to utilize marine airbag technology to drydock vessels, a departure from the traditional common carriage-type method
State-owned Development Bank of the Philippines (DBP) has granted a P4.17 billion loan to Megaship Builders, Inc. (MBI) to upgrade and expand its shipbuilding and ship repair complex in Albuera, Leyte.
DBP president and chief executive officer Emmanuel Herbosa said the loan proceeds will partially finance 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 in a statement.
DBP executive vice president for development lending Jose Gabino Dimayuga said the project will help address the lack of viable shipyards that can accommodate the growing number of vessels in the country, which at present has a ratio of 204 vessels to one shipyard.
Dimayuga said that as an archipelagic country, the Philippines must enhance its transport infrastructure and logistics facilities to promote physical integration and seamless movement of goods, which can create economic opportunities, especially for those living in the 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 an exporter of large, commercial ships for the international market,” he said.
Infrastructure and logistics is one of the four strategic sectors of the economy that DBP is providing credit support to. Other sectors include micro, small and medium enterprises; social services and community development; and the environment.
Local shipbuilder MBI started operations in June 2016 and is engaged in shipbuilding, ship repair, design, construction, outfitting, and launching of any type of vessel or watercraft.
It is also the first shipbuilding and drydocking company in the Visayas to utilize marine airbag technology to drydock vessels—a departure from the traditional common carriage-type method.