Authorizing The National Development Company To Assist Local Shipbuilders And Persons And Entities Engaged In Interisland Shipping And Appropriating Funds Therefor

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 878 January 22, 1976

AUTHORIZING THE NATIONAL DEVELOPMENT COMPANY TO ASSIST LOCAL SHIPBUILDERS AND PERSONS AND ENTITIES ENGAGED IN INTERISLAND SHIPPING AND APPROPRIATING FUNDS THEREFOR

WHEREAS, it is the current policy of the government to assist the development of the shipping industry of the country, a substantial portion of which is represented by interisland shipping;

WHEREAS, almost ninety per centum (90%) of the country's interisland vessels are already twenty (20) years old or over necessitating their replacement within a short period of time;

WHEREAS, there is a need to assist the interisland shipowners to acquire new and modern vessels in order to fully realize the government's goal of a balanced and total development of the country's shipping industry; and

WHEREAS, it is also necessary that in the development of the shipping industry, the country's local shipbuilding capability should likewise be enhanced in order to ensure our self-sufficiency in this sector.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue...

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Summary of Presidential Decree No. 878

Objective: Assist the development of the Philippine shipping industry, particularly interisland shipping and local shipbuilding capabilities.

- Appropriates P200 million for the National Development Company (NDC) to be used for: (Section 1)
• Construction, purchase, or acquisition of interisland vessels for resale, lease, or charter to qualified entities engaged in Philippine interisland shipping.
• Providing loans to qualified entities for financing the construction, purchase, acquisition, and operation of interisland vessels.

- Qualified entities: (Section 1)
• Philippine citizens.
• Associations or corporations with at least 60% of capital owned by Philippine citizens.

- Vessels acquired or financed must be constructed by local shipbuilders registered with the Board of Investments. (Section 2)

- Payments received from vessel rentals, purchases, and loan repayments shall constitute a revolving fund administered by the NDC for carrying out the provisions of this Decree. (Section 3)

- Repeals or amends any inconsistent laws, decrees, orders, rules, or regulations. (Section 4)

- Effective upon approval. (Section 5)