DBP funds acquisition of two ferry vessels

MANILA, Philippines - The Development Bank of the Philippines (DBP) and the Northeastern Luzon Pacific Coastal Service Inc. (NLPCSI) has signed a P64.7-million loan agreement to finance the acquisition of two ferry vessels that will ply the missionary route in northeastern Luzon.

The ferry vessels will serve the provinces of Cagayan, Isabela, and Aurora, providing an affordable, reliable and convenient mode of transportation to move passengers, agricultural and marine products from coastal towns to mainland markets.

DBP president and chief executive officer Reynaldo G. David said the initiative is in line with DBP’s flagship project, the Sustainable Logistics Development Program (SLDP).

“The opening of a missionary route will improve economic conditions and harness the tourism potential of northeastern Luzon, subsequently generating more employment opportunities for residents of coastal towns in the area,” he added in a press statement.

NLPCSI president and chief executive officer Jose Mari Ponce, who is also administrator of the Cagayan Economic Zone Authority (CEZA) said the initiative will link two economic zones – the Aurora Economic Zone and the Cagayan Free Port.

It will likewise promote eco-tourism in the area while supporting the campaign against logging activities in the Sierra Madre mountain range.

The project supports the Road Roll-on Roll-off Terminal System, which is one of the three components of DBP’s Sustainable Logistics Development Program (SLDP). This is an investment financing facility for a comprehensive and integrated transportation system as well as related infrastructure and support services.

The other components are the bulk grains highway, which facilitates the transport of corn from Mindanao to Northern Luzon, while the cold chain highway is aimed at re-engineering the logistics system for perishables. Founded in 2003, NLPCSI was formed by the provinces of Aurora, Isabela, and Cagayan, and the CEZA to establish a RORO system along the northeastern coast of Luzon.