Sustainable logistic Development program (SLDP) financing of Cold Chain Projects in the Fishing Industry

Program Title: Sustainable Logistic Development Program (SLDP) Financing of Cold Chain Projects in the Fishing Industry

Program Description: DBP’s Sustainable Logistics Development Program (SLDP) aims to develop the logistics cold chain for efficient distribution perishable food items. More particularly, special focus is given to the fishing industry inasmuch as the sector is a source of livelihood for many marginalized Filipinos with fish as a source of cheap food and protein for nutrition. This component focuses on the reduction of wastage and spoilage of fish, and maintaining their shell life and quality through a connected refrigerated chain from producers to consumers. Short-term gaps in demand and supply are also addressed by the availability of continuous supply from the fishing areas, thus, contributing to the stabilization of commodity prices in the market.

Eligible Borrowers:
* Single proprietorships (Filipino citizens)
* Registered partnerships
* Private corporations – at least 60% Filipino-owned
* Cooperatives and associations
* Local Government Units (LGUs)

Eligible Projects: Eligible investments are those projects in the fishing sector which adhere to the concept of cold chain logistics using an integrated project approach. This concept takes into account the different components involved in the processing and transport of fish catch from harvest areas to the different markets. The components of fish transport would include:

* Fishing vessels (wooden hulled vessels are not included) and fishing gear (excluding nets)
* Refrigerated fish carriers
* Fish landing ports and other support facilities (e.g. cold storage, processing center)
* Fish handling/transport equipment (e.g. reefer vans, forklifts)

Municipal Fishing and Small Marginalized Commercial Fishing:
* Vessels not more than 3 GT
* Lending to organized groups or fishermen’s cooperatives

Large Commercial Fishing:
* In accordance with requirements of the project

Loan Purpose: Up to 80% financing for the investments in the following:
* Cost of locally constructed or imported, brand new or second-hand units of fishing vessels and refrigerated carriers. However, vessels should be currently in class or still acceptable under the standards or any DBP-recognized classification society.
* Cost of conduction for imported vessels
* Cost of construction/upgrading of fishport and support facilities
* Cost of handling and transport equipment Vessel Classification Requirement: Fishing vessels/refrigerated
carriers to be financed must be classed throughout the term of the loan by any of the following:
* Member of the International Association of Classification Societies (IACS)
* Philippine Register of Shipping (PRS)

Terms/Requirements:

Loan Amount:
* Minimum amount of P 500 Thousand
* Maximum Amount – in accordance with requirements of the project

Interest Rate:

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

Commercial Fishing Projects:
* Fixed, based on DBP rates for SLDP projects

Repayment: Maximum repayment term of ten (10) 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 quarterly basis with interest computed on outstanding principal balance.

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:
* Value Added Tax (VAT), import taxes and duties shall be for the account of the borrower

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
o Owners, management & staff
o Major assets and financial status
o Existing operations & market

* Proposed project/Purpose
o Projected market & marketing strategy
o Projected income & expenses
o Project Timetable
o For vessel acquisition, vessel cost estimates and specifications, including ship drawings, if any

Once a project has been found eligible 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), DENR among others.
* 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