Announcement of First IFC Ship Repair Investment Two Million Ten Thousand US Dollars for Philippine Project on January 10, 1979

Internation£Jl Finance. Corporation 1818 H Street, N.W. • Washington, D.C. 20433, U.S.A . 202-477-1234 ;t•.:...... ". - ,. •• • .. \, x·. \ . IFC Press Release No. 79/21 Wednesday, January 10, 1979 First IFC Ship Repair Investment $2.1 Million for Philippine Project The International Finance Corporation (IFC) is making its first invest- ment in the ship repair and building industry with a $2.1 million loan to Cebu Shipyard & Engineering Works, Inc., of the Philippines to help finance an $8.8 million expansion and modernization program. The project will double the Company's ship repair capacity with the con- struction of a 160 by 30 by 10 meter graving dock capable of servicing vess.els up to 20,000 dwt. The new facility will primarily service ocean-going vessels as well as the larger size inter-island ships. • Located in Mactan Island, near the City of Cebu, the project supports Government development objectives and has been given high priority b.ecause of the Philippines' reliance on shipping. It will create jobs for 275 skilled workers, upgrade ship repair technical standards and shorten repair time by utilizing the latest in machinery and facilities. Nissan Construction Company of Japan carried out the engineering for the project and will provide project management during the construction phase. IF'C' s participation, which includes an option to convert $200,000 into equity, was closely coordinated with the Private Development Corporation of the Philippines (PDCP) which, in addition to providing a $2.12 million loan, also arranged a $1.3 million equivalent loan from the Family Savings Bank and a $400,000 equivalent: loan from Philippine American Insurance. The pre- sent shareholders are investing $800,000 in fresh equity in addition to colilIIri.tting the Company's surplus to the project. (Any inquiries strictly relating to IFC's participation in this project should • be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C • 20433, Telephone (202) 477-5340.) ·