Sustainable Logistic Development Program (SLDP) Road Roro Terminal System (RRTS)

Program Title: Sustainable Logistic Development Program (SLDP) Road Roro Terminal System (RRTS)

Program Description: DBP’s Sustainable Logistics Development Program (SLDP) identified 49 connections within the Road RORO Terminal System (RRTS). While more than half of the connections are already operational, the rest have remained without service. DBP recognizes the need to support the capital infrastructure requirements of these missionary. The liberalized credit terms offered by DBP aim to fast track the establishment of specific inter-island links vital to sustaining economic development in the countryside.

Eligible Borrowers:
Single proprietorships
Registered partnerships
Private corporations
Local Government Units (LGUs)
Government-Owned and Controlled Corporations (GOCCs)

Eligible Projects: Investments in RORO vessels to be deployed in Road RORO Terminal System (RRTS) missionary connections. These connections or links are initially identified as follows:
San Narciso, Quezon – San Pascual, Burias Island, Masbate – Aroroy, Mabate – Pasacao, Camarines Sur
Pilar, Sorsogon – Aroroy, Masbate (or Masbate City)
Cataingan, Masbate – Kawayan, Biliran
Cawayan, Masbate – Daan Bantayan, Cebu
Liloan, Cebu – Getafe, Bohol
Jagna, Bohol – Mambajao, Camiguin Island
Mariveles, Bataan – Cavite City – Manila
Calatagan, Batangas – Abra de Ilog, Mindoro Occ.
San Jose, Mindoro Occ. – Coron, Palawan
San Jose, Mindoro Occ. – Semirara Island – Caticlan, Aklan
Sibuyan Island – Romblon – Roxas, Mindoro Oriental
Mandaon, Masbate – Roxas City, Capiz
San Fernando, Ticao Island, Masbate – Bulan, Sorsogon
Maasin, Leyte – Ubay, Bohol
Catanauan, Quezon – Sta. Cruz, Marinduque
Manapla, Negros Occ. – Ajuy, Iloilo
Guihulngan, Negros Or. – Dumanjug, Cebu
Sibulan, Negros Or. – Santander, Cebu
Santander, Cebu – Larena, Siquijor Island
Northeastern Luzon Pacific Coastal Service
Sta. Ana, Cagayan – Maconacon, Isabela – Palanan, Isabela – Dilasag, Aurora
Casiguran, Aurora – Baler, Aurora – Dingalan, Aurora – Infanta, Quezon

Loan Purpose: Up to 100% financing for the acquisition of RORO vessels:
Cost of imported, second-hand units, including conduction costs. However, age of vessel should not exceed twenty (20) years, should be currently in class of still acceptable under the standards of any DBP-recognized classification society.
Cost of shipbuilding contract. DBP shall finance construction of RORO vessels by local shipyards.

Ship Classification Requirement: RORO vessels to be financed must be classed by any of the following:
Member of the International Association of Classification Societies (IACS)
Philippine Register of Shipping (PRS)

Terms/Requirements:

Interest Rate:
For the first 2 years – seven percent (7%) per annum;
For the succeeding years – Annual re-pricing based on prevailing PDSTR (Philippine Dealing System Treasury
Reference) rates for 10-year benchmark plus 0 to 1% depending on annual credit review.

Repayment: Maximum repayment term of fifteen (15) years inclusive of two (2) years maximum grace period. Repayment term and grace period shall depend on the cash flows of the project. Loan amortization shall be made on a monthly basis with interest computed on outstanding principal balance.
Pre-Termination: Pre-termination may be allowed subject to 30 days advance notice and payment of all accrued interest and other charges. No prepayment penalty.

Collateral:
Chattel Mortgage on vessel to be financed
Other forms of collateral
Marine insurance endorsed in favor of DBP shall be maintained throughout the term of loan

Other Conditions:
Refundable cash deposit equivalent to three (3) months amortization;
Value added tax (VAT), import taxes and duties shall be for the account of the borrower
Deployment of the financed RoRo vessel in a commercial route is allowed provided the replaced RORO vessel is deployed to a
DBP – identified missionary route and maintained throughout the term of the loan.

How to Apply:
Eligible borrowers should submit to DBP letter of intent (LOI) to avail of financing for a specific RORO links identified;
Submission of loan application requirements including information for the conduct of credit and background investigation.

Loan Application Requirements: A Project Brief should be submitted to the SLDP Project Team for eligibility clearance. Suggested outline of the Project Brief is as follows:

Brief history of the company
Present status of company
Owners, management & staff
Major assets and financial status
Existing operations & market

Company’s proposed project
Proposed missionary connection
Identification of port terminals to be used
Projected market & marketing strategy -113-
Projected income & expenses
Project Timetable
Ship Description and Specifications
Ship Management and Crewing
Training & Preventive Maintenance Program

Vessel cost estimates and specifications, including ship drawings, if any

Qualifying Criteria:
Established shipping operator, preferably with a fleet of vessels in the domestic market;
Strong capital/financial position of principal borrower;
Managerial & technical competence in shipping operations;
Readiness of port terminals with required RORO ramps and facilities.

Once a project in a specific connection/link has been selected for DBP financing, the required project feasibility study (FS) and ship drawings should be submitted by the applicant to DBP through the Account Officer processing the loan application.

Other Requirements:
Proponents should comply with requirements of Local Government Units, International Maritime Organization (IMO)
Conventions, Maritime Industry Authority (MARINA), Philippine Coast Guard (PCG), environment and other governmental regulations;
All vessels to be financed must be suitable for its projected market & ports of call and classed by a DBP and MARINA-recognized classification society. Vessels’ class should be maintained throughout the term of the loan.
Whenever applicable, vessels to be acquired should have pollution prevention facilities such as waste treatment system and oil-water separation system.

Contact Details:

DEVELOPMENT BANK OF THE PHILIPPINES (DBP)
Head Office: Sen. Gil J. Puyat Ave. cor. Makati Avenue, Makati City

Dulce Q. Ranosa
Senior Assistant Vice President
DBP-Head Office
5th Floor, DBP Building
Makati Ave. cor. Gil J. Puyat Avenue
Ext., 1200 Makati City
Direct Line : (632) 840.5356
Trunkline : (632) 818.9511 local 2557
Fax: (632) 894.4927
E-mail: dqranosa@devbankphil.com.ph

Eduardo Z. Rivera
Acting RMC Head/Asst. Vice President
RMC-Northeastern Luzon
2nd Floor, DBP Building
Osmena, National Highway
Ilagan, 3500 Isabela
Direct Line : (6378) 624.0877; 622.2273
Fax: (6378) 622.2272/2273
E-mail: rmc-nel@devbankphil.com.ph

Perla S. Soleta
RMC Head/Sr. Asst. Vice President
RMC/Northwestern Luzon
2nd Floor, DBP Building
M. H. Del Pilar St.
2400 Dagupan City
Direct Line : (6375) 515.8937; 523.7836
Fax: (6375)
523.7835/246.0742
E-mail: rmc-nwl@devbankphil.com.ph

Ma. Teresita S. Tolentino
RMC Head/Vice President
RMC-Metro Manila
2nd Floor, DBP Building
Commonwealth Avenue
1121 Quezon City
Direct Line : (632) 920.4781; 920.4715
Fax: (632) 920.4776/920.4903
E-mail: rmc-mm@devbankphilc.com.ph

Herminio C. Catahan
RMC Head/Sr. Asst. Vice President
RMC-Central Luzon
Dona Isa Fel Building
Dolores, McArthur Highway
San Fernando City, 2000 Pampanga
Direct Line : (6345) 961.0003; 961.4782
Fax: (6345) 963.1231
E-mail: rmc-cl@devbankphilcom.ph

Rolando N. Gordovez
RMC Head/Asst. Vice President
RMC-Southern Tagalog
2nd Floor, DBP Building
Merchan St., 4301 Lucena City
Direct Line : (6342) 373.1917; 373.4404
Fax: (6342) 373.4404
E-mail: rmc-st@devbankphilcom.ph

Abelardo L. Monarquia
RMC Head/Sr. Asst. Vice President
RMC-RMC Bicol
3rd Floor, DBP Building
Quezon Avenue, 4500 Legaspi City
Direct Line : (6354) 472.4728; 472.4729
Fax: (6354) 472.4727
E-mail: amorbr@devbankphilcom.ph

Rodelio L. Labit
RMC Head/Sr. Asst. Vice President
RMC-RMC Eastern Visayas
2nd Floor, DBP Building
Corner Zamora and Paterno Sts.
Tacloban City, 6500 Leyte
Direct Line : (6353) 325.2958 to 2960
Fax: (6353) 325.2961
E-mail: rmc-ev@devbankphilcom.ph

Rosalio Dagondon
RMC Head/Vice President
RMC – Central Visayas
Mezzanine Floor, DBP Building
Osmena Blvd., 6000 Cebu City
Direct Line : (6332) 255.6310; 255.7410
Fax: (6332) 253.6951
E-mail: rmc-cv@devbankphil.com.ph

Rosalio Melanie Pama
Acting RMC Head/ Asst. Vice President
RMC – Panay
Mezzanine Floor, DBP Building
I. Dela Rama St., 5000 Iloilo City
Direct Line : (6333) 336.6432; 337.6330
Fax: (6332) 335.7567
E-mail: rmc-panay@devbankphil.com.ph

Ame Cris C. Toledo
RMC Head/Sr. Asst. Vice President
RMC – Negros
Mezzanine Floor, DBP Building
corner South Capital & Lacson Sts.
6100 Bacolod City
Direct Line : (632) 818.9511 local 2557
Fax: (632) 894.4927
E-mail: rmc-negros@devbankphil.com.ph

Edgar N. Seronay
RMC Head/Sr. Asst. Vice President
RMC-Northern Mindanao
2nd Floor, DBP Building
Corrales Avenue cor. Tirso Neri St.
9000 Cagayan de Oro City
Direct Line : (6388) 231.4266; 309.4266
Fax: (6388) 723.316
E-mail: rmc-cdo@devbankphilcom.ph

Sisinio S. Narisma
RMC Head/Sr. Asst. Vice President
RMC-Northeastern Mindanao
J. C. Aquino Ave. corner J. Rosales
Avenue, 8600 Butuan City
Direct Line : (6385) 815.6036; 341.5136
Fax: (6385) 815.1627
E-mail: amonem@devbankphilcom.ph

Neogen M. Chavez
RMC Head/Sr. Asst. Vice President
RMC-Southern Mindanao
2nd Floor, DBP Building
Roxas Avenue, General Santos City
Direct Line : (6383) 552.2328; 552.4514
Fax: (6383) 301.1688
E-mail: rmc-sm@devbankphilcom.ph

Fernando G. Lagahit
RMC Head/Sr. Asst. Vice President
RMC-Southeastern Mindanao
2nd Floor, DBP Building
C. M. Recto, 8000 Davao City
Direct Line : (6382) 221.2620; 222.3478
Fax: (6382) 221.2517
E-mail: amosem@devbankphilcom.ph

Catalina A. Marquez
RMC Head/Manager
RMC-Western Mindanao
DBP Building, Don P. Lorenzo St.
Port Area, 7000 Zamboanga City
Direct Line : (6362) 992.7865; 991.1316
Fax: (6362) 991.0359
E-mail: amowm@devbankphilcom.ph