Posted on April 15, 2024
The Maritime and Port Authority of Singapore (MPA) has received 12 financing and seven insurance proposals in response to the Expression of Interest (EOI) launched to support early adopters of electric harbour craft (e-HC)1, according to MPA’s release. The proposals were submitted by local and international financial institutions (FIs), financial intermediaries, marine insurers, and insurance brokers.
MPA has shortlisted EOI proposals from DBS Bank Ltd, United Overseas Bank Limited, BNP Paribas Singapore Branch, KfW IPEX-Bank Asia Ltd, and Société Générale, to offer direct debt financing options for harbour craft owners. MPA will work with these banks to further develop their solutions.
The response to the EOI has also affirmed the strong interest from FIs and financial intermediaries in offering alternative financing solutions beyond debt financing to support the sector’s transition to e-HC. Eight consortia submitted alternative financing proposals. In the next phase of the EOI process, MPA will issue a closed call for proposals to further select the alternative financing proposal(s) for implementation. MPA will provide more details on the next steps in 2 nd quarter 2024.
MPA and Enterprise Singapore (EnterpriseSG) will also be working with interested FIs to explore onboarding them to the Enterprise Financing Scheme – Green (EFS-Green), with EnterpriseSG undertaking risk-sharing of 70% to support lending by participating FIs. This initiative will potentially open up more financing options for harbour craft owners planning on adopting green technologies and solutions for their fleet.
MPA launched an Expression of Interest on 19 October 2023 inviting financial institutions and intermediaries, as well as marine insurance providers and brokers, to submit proposals to accelerate the adoption of electric harbour craft in Singapore.
The seven insurance related submissions indicated that the proposed insurance premiums for e-HC are comparable to that of conventional harbour craft. These proposals were submitted by Income Insurance Limited, QBE Insurance (Singapore) Pte Ltd, The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg) Singapore Branch, NorthStandard Limited, Tigermar Global Pte Ltd, Cambiaso Risso Asia Pte Ltd, and Lockton Companies (Singapore) Pte Ltd.
