Law Summary
Appropriation and Fund Allocation
- An amount of Two Hundred Million Pesos (₱200,000,000) is appropriated from the National Treasury or through local loans.
- This fund is earmarked for the National Development Company (NDC) to facilitate construction, purchase, or acquisition of interisland vessels.
- Funds are also allocated for resale, lease, or charter to eligible Philippine inter-island shipping entities.
- Eligibility is restricted to Filipino citizens or corporations/associations where at least 60% capital ownership is Filipino.
- Financing through loans is also available for construction, purchase, acquisition, and operation of vessels by qualified citizens or entities.
Local Construction Requirement
- All vessels acquired or financed under this decree must be constructed by local shipbuilders.
- Eligible local shipbuilders must be registered with the Board of Investments, ensuring support for domestic industries.
Revolving Fund Mechanism
- Payments such as rentals, purchase prices, loan principal, and interest related to vessels funded under this decree create a revolving fund.
- This revolving fund is exclusively used to continue financing shipping industry development pursuant to the decree.
- The National Development Company is designated as the sole administrator and disbursing entity for this fund.
Repeal and Effectivity
- Any laws, decrees, orders, or regulations inconsistent with this decree are repealed or amended accordingly to align with its provisions.
- The decree took effect immediately upon approval, ensuring the prompt implementation of its measures.