Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 878)
The main purpose of Presidential Decree No. 878 is to authorize the National Development Company to assist local shipbuilders and persons and entities engaged in interisland shipping by appropriating funds to support the construction, purchase, or acquisition of interisland vessels to promote the development of the country's shipping industry.
The sum of Two Hundred Million Pesos (P200M) is appropriated for the National Development Company to be used for the construction, purchase, or acquisition of interisland vessels.
Only citizens of the Philippines or associations or corporations sixty percent (60%) of the capital of which is owned by such citizens may qualify under the provisions of this Decree.
All vessels acquired and/or financed under the provisions of this Decree shall be constructed by local shipowners registered with the Board of Investments.
All such monies shall constitute a revolving fund to be used exclusively to carry out the provisions of this Decree, administered and disbursed by the National Development Company.
Yes, any law, decree, order, rule, or regulation inconsistent with this Decree is hereby repealed or amended accordingly.
This Decree took effect upon approval, which was on January 22, 1976.
The government policy is to assist the development of the shipping industry of the country, particularly interisland shipping, and to enhance the country's local shipbuilding capability to ensure self-sufficiency.
Because almost ninety percent (90%) of the country's interisland vessels were already twenty (20) years old or over, necessitating their replacement within a short period of time.
The National Development Company administers and disburses the revolving fund for the purpose set out in the Decree.