Under its Sustainable Logistics Development Program (SLDP), DBP will also provide funding support for 10 projects involving the acquisition and upgrading of Ro-Ro vessels, and the construction and development of ports and Ro-Ro terminals.
DBP president and chief executive officer Reynaldo G. David said seven more projects worth roughly P482 million are in the pipeline for vessel acquisition and port construction and upgrading.
"The RRTS is one of the vital strategies that will link and connect our islands. This should stimulate inter-island trade and commerce, reduce transport costs, bring down the prices of food and services, and also bring in more revenues for local governments," David said.
Among the projects is the upgrading of a Ro-Ro vessel that plies the Mukas, Kolambogan to Ozamiz City route, crossing the Panguil Bay area. Panguil Bay, which serves as the connecting waterline, is a strategic venue in the social and economic development in Region 9 (Pagadian, Dipolog, and Zamboanga provinces), Region 10 (Cagayan de Oro, Ozamis, and Misamis provinces), and Region 11 (Iligan and Lanao provinces).
Panguil Bay also links Mindanao to other parts of the country as it is located along the line of the Maharlika Highway.
The improvement in ferry services in Panguil Bay, which provides the shortest route to Ozamis City, has made the transfer of goods and services more economical. It has drastically reduced the travel distance around the bay area covering five towns by 84 kilometers from a total of 108 kilometers. Travel time has correspondingly been reduced from three hours to a mere 15 minutes crossing the bay, allowing students and employees to commute daily, instead of boarding in Ozamis City.
David also said that DBP has financed the acquisition of two Ro-Ro vessels that serve the Batangas City/Calapan route, one of the SLDP-identified active routes with a high passenger and vehicle population.
The adoption of a semi-mechanized cargo handling system using palletized cargoes also reduced by 50 percent the average standby time of 12 hours in ports, thus increasing the frequency of Ro-Ro trips and maintaining the regularity of trip schedules.
At present, DBP has P17 billion in funds available for investments in the SLDP. The funding is basically provided by the Japanese government through the Japan Bank for International Cooperation (JICA). New funds amounting to P16 billion will be available by the last quarter of 2005 to support more infrastructure investments.
"We are also looking at ways to ease the entry of investors in the SLDP. We are working closely with the National Development Co. (NDC) for the creation of the Maritime Equity Corp. Basically, the project involves a scheme that will give shipping companies the option to enter into a lease-purchase agreement for the acquisition of vessels," David added.
DBP is fast-tracking the SLDP both as a development imperative and as part of a commitment to speed up development initiatives in the countryside. "The overall objective is to alleviate poverty, create jobs, and sustain economic growth and development," David said.