IFC offers expertise to help Marina reduce red tape

MANILA, Philippines - The International Finance Corp. (IFC) hás extended its expertise and assistance to the Matirime Industry Authority (Marina) to shorten the period in the issuance of permits from 52 days to just nine working days.

The IFC is the private investment arm of the World Bank.

Last Tuesday, the IFC handed over to Marina, the country’s regulatory agency for the shipping and ports industry, the enhanced special processing window-express lane or a system that will shorten the processing time of permits to acquire ships and operate the same from 52 to nine working days.

According to the IFC, the newly-introduced procedure could result in savings for shipping firms up to P30 million per vessel in direct costs and lost revenues with the drastic reduction of processing time.

In a press statement, Marina administrator Maximo Mejia said the special processing system is part of efforts of the Department of Transportation and Communications (DOTC).

The IFC is supporting Marina in improving regulations and streamlining its procedures as part of an earlier cooperation agreement between the IFC and the DOTC to improve domestic shipping services.

The express lane is open to domestic shipping companies owning ships that  meet certain requirements such as non-modification of the ship’s structure, valid statutory certificates in English language issued by a flag state and Marina-recognized classification society.

It will be on pilot run at the Marina central office in Manila until July 30, 2014.  If successful, the program will be rolled out across the different agency regional offices.

Last May 2013, DOTC and the IFC signed a cooperation agreement to make the shipment of agricultural goods and supplies faster and easier. The initiative will be implemented nationwide, beginning with ports with high volumes of agricultural cargo shipments in cities in Luzon and Mindanao.

The agreement demonstrates IFC’s confidence in the department and its agencies -the Philippine Ports Authority (PPA) and Marina – to undertake shipping and port reforms.

Improving regulations and harmonizing procedures to ensure a level-playing field and make domestic shipping services more competitive. In turn, better services will help farmers and agribusinesses take advantage of market opportunities and raise rural incomes.

The partnership between IFC and the department is supported by the Canadian International Development Agency (CIDA).