Philippines plans fleet expansion

The Philippine government intends to borrow $1 billion from the Japanese government to develop the shipping industry, Economic Planning Secretary Romulo Neri said recently.

The loan would come next year from the Japan Bank for International Cooperation (JBIC), the Philippines? biggest source of official development assistance, as part of the Japanese government?s 27th yen loan package, Neri said. It will be used specifically to import ships and to build some at domestic shipyards that will be leased to the private sector, he said.

Developing sea transport is one of the microeconomic reforms Neri is calling for to improve the business climate, including cutting the cost of doing business and so encourage more investments and create more jobs. The government hopes that the loan will carry a maturity of 30-40 years, Neri said. He said the disbursement schedule and other terms of the loan had yet to be discussed with Japan.