To
provide competitive financing through the issuance of guarantees
of debt issued for the purpose of financing or refinancing the construction,
reconstruction or reconditioning of vessels built in United States
shipyards and guarantee obligations for advanced shipbuilding technology
and modern shipbuilding technology of a general shipyard facility
located in the United States to stimulate commercial ship construction
for domestic and export sales, encourage shipyard modernization,
and support increased productivity.
TYPES
OF ASSISTANCE:
Guaranteed/Insured Loans. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
Guarantees
are available to aid in financing of: 1) advanced shipbuilding technology
and modern shipbuilding technology of a general shipyard facility
located in the United States, and 2) vessels (including eligible
export vessels) which are designed for research or for commercial
use (a) in coastwide or intercostal trade; (b) on the Great Lakes
or on bays, sounds, rivers, harbors, or inland lakes of the United
States; (c) in foreign trade; (d) as an ocean thermal energy conversion
facility or plantship; (e) as floating drydocks, or (f) with respect
to an eligible export vessel, in world-wide trade. Any vessel of
not less than 5 net tons, (other than a towboat, barge, scow, lighter,
car float, canal boat or tank vessel of less than 25 gross tons)
is eligible.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: An individual with the ability,
experience, financial resources, and other qualifications necessary
for the adequate operation and maintenance of a vessel or an eligible
shipyard.
Beneficiary
Eligibility: U.S. and foreign shipowners,
or eligible U.S. shipyards.
Credentials/Documentation:
Financial history, economic feasibility of project, operating
history, citizenship of applicant. This program is excluded from
coverage design and specification information under OMB Circular
No. A-87.
Pre-application
Coordination: Informal preapplication meeting
is recommended. This program is excluded from coverage under OMB
Circular No. A-102. This program is excluded from coverage under
E.O. 12372.
Application
Procedure: Application Form MA163 must be
filed with the Office of Ship Financing, Maritime Administration,
400 Seventh Street, SW., Washington, DC 20590. This program is
excluded from coverage under OMB Circular No. A-102. This program
is excluded from coverage under OMB Circular No. A-110.
Award
Procedure: Final approval granted by the Maritime
Administrator.
Deadlines:
No guarantee will be entered into later than 1 year after the
delivery of a new vessel or shipbuilding technology, except for
refinancing to provide funds for additional vessel construction
or to refinance existing obligations issued for the purposes contained
in Title XI.
Range
of Approval/Disapproval Time: After a complete
application has been filed with all supporting documents, processing
time is approximately 60 days.
Appeals:
None.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: The Act presently
provides a limitation of 87 1/2 percent of the amount of "Actual
Cost" which can be guaranteed. The remaining costs are to be provided
by the applicant.
Length
and Time Phasing of Assistance: Assistance
provided as ship/shipbuilding technology is constructed and/or
throughout life of ship/shipbuilding technology, but in any case
not to exceed 25 years from vessel delivery or economic life of
the assets being financed.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Financial reports as per contract. Annual reports regarding citizenship,
no default certificates, vessel requirements.
Audits:
See "Index of Current Regulations," Maritime Administration.
Records:
Financial reports as per contract. Annual reports regarding citizenship,
no default certificates, vessel requirements.
FINANCIAL
INFORMATION:
Account
Identification: 69-1752-0-3-403.
Obligations:
(New loan guarantee commitments) FY 01 $54,114,000; FY 02 est
$252,995,000; and FY 03 est $0.
Range
and Average of Financial Assistance:
Historically projects have ranged from less than $1 million
to several hundred million. (Average is not entered, because it
would not be typical of the breadth of the program.)
As of March 1 2002, a total of four applications have been approved
in fiscal year 2002 totaling $194,040,248. There are a total of
4 applications pending.
REGULATIONS,
GUIDELINES, AND LITERATURE:
46 CFR Part 298. Booklet entitled, "Federal Ship Financing Program."
INFORMATION
CONTACTS:
Regional
or Local Office: See Maritime Administration
Regional Offices listed in Appendix IV of the Catalog.
Headquarters
Office: Associate Administrator for Shipbuilding,
Office of Ship Financing, Maritime Administration, Department
of Transportation, Washington, DC 20590. Telephone: (202) 366-5744.
Web
Site Address: http://www.marad.dot.gov
EXAMPLES
OF FUNDED PROJECTS:
In the past approvals were granted to aid in the construction of:
tankers, cargos, LNGs, Bulk/OBOs, integrated tug/barge units, drill
rigs, drill service vessels, ocean tugs and barges, river tugs and
barges, shipboard lighters, passenger vessels, ferries, and miscellaneous
vessels and advanced and modern shipbuilding technology.
CRITERIA
FOR SELECTING PROPOSALS:
Projects which involve the construction, reconstruction or reconditioning
of vessels in the United States and advanced and modern shipbuilding
technology for a general shipyard facility are eligible for Title
XI financing. In order to receive approval, applicants must possess
the necessary ability, experience, financial resources and other
qualifications. The financial resources necessary for the project
are determined by the project's costs and the financial position
and resources available to the applicant. Additionally, all projects
must be determined to be economically feasible before approval can
be granted. Applications are generally processed with a view towards
accommodating the time frame of each and every applicant.
