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(xxii) The financing of a new ferry to be built at Chantiers de l'Atlantique by the French regions of Bretagne and Pays de Loire reportedly using tax break schemes.21
 
Reply
 
The concerned ferry will not be built at the shipyard mentioned in the question, but at a shipyard in another EU Member state.
 
(xxiii) The financing of two cruise ships for owner Royal Olympic cruises by German banking consortium "led by the government's Kreditanstalt für Wiederaufbau" up to 80 per cent of the total sales price of EUR 312 million. A guarantee was reportedly secured for EUR 70 million of that amount from the city government of Hamburg.22
 
Reply
 
We refer to the general comments in the introduction of this questionnaire.
 
(xxiv) The aid granted by Spain for the restructuring of publicly owned shipyards and leading to the creation of IZAR, currently being investigated by the European Commission.23 An earlier aid package granted in 1998 and consisting of special tax credits was declared incompatible with the Common Market by Commission Decision 2000/131/EC of 26 October 1999.24
 
Reply
 
Information on these issues can be found in the references mentioned in the question and in the footnote.
 
The German government's reconstruction and development bank, Kreditanstalt für Wiederaufbau in Frankfurt is reported to have provided another soft loan of EUR 81.8 million as part of a programme for building an inter-island passenger vessel for Indonesia at a German yard.25
 
Reply
 
This aid has been provided in the form of development aid in accordance with relevant provisions in the OECD understanding on export credits for ships. Further information can be found in OJ C 62, 2002 and state aid case N 612/01.
 
(xxv) The French Government's participation in the rescue of the Compagnie Marseillaise de Réparation shipyard through provision of funds amounting to EUR 1.6 million.26
 
Reply
 
We refer to the general comments in the introduction of this questionnaire.
 
(xxvi) The aid granted by the Greek Government to Hellenic Shipyards in connection with the privatisation of the company. The Commission approved part of this aid on 5 June 2002, while at the same time initiating a detailed investigation on the remaining part.27
 
Reply
 
Information on this case can be found in OJ C 186, 6.8.2002 and in state aid case C 40/02.
 
(xxvii) The financing of a new car ferry to be built at German Jos L Meyer shipyard for French Channel operator Brittany Ferries. According to the press, 75 per cent of the cost of the ship is to be financed under French tax-break provisions by a banking pool which includes Credit Agricole Indosuez, BNP Paribas, Crédit Coopératif, Crédit Industriel de l'Ouest and Germany's KVF.28
 
Reply
 
We refer to the general comments in the introduction of this questionnaire.
 
(xxviii) The granting of aid by the Dutch Government for the building of four new MO-TEU container ships at shipyard Bodewes Scheepswerf Viharding for Indonesia's Arpeni Pratama Ocean Line.29
 
Reply
 
We refer to the general comments in the introduction of this questionnaire.
 
(xxix) The package of subsidies worth EUR 24 million approved by the German parliament (plus EUR 48 million to be provided by German coastal states) ahead of the approval of the EC temporary defensive mechanism to shipbuilding and reportedly designed to support the construction of container vessels and tankers at German yards.30
 
Reply
 
It is a normal procedure that a Member State sets aside a budget in order to be able to provide permissible aid.
 
(xxx) The financing of the building of a new ferry at insolvent German shipyard Flender Werft secured by a consortium of banks composed, inter alia, by German government's reconstruction and development bank Kreditanstalt für Wicderaufbau (KfW) and the Schleswig-Holstein government-owned Landesbank Kiel.31
 
Reply
 
We refer to the general comments in the introduction of this questionnaire.
 
(xxxi) The financial aid provided to German shipowners to compensate for non-wage labour costs and approved by the Commission on 5 June 2002.32
 
Reply
 
This measure concerns labour costs on ships under German flag, which has no relation to shipbuilding.
 
(xxxii) The aid granted by the French Government to support the creation of Soreni Ship Repair Company after the bankruptcy of the shipyard Ateliers et Chantiers du Havre Constructions Navales in 1999. This aid is currently being investigated by the Commission.33
 
Reply
 
Since the issue is under examination by the European Commission, we refer to the OJ referred to in the footnote.
 
(xxxiii) The Spanish Government is reported to be finalizing a proposal to provide EUR 500 million in state credits to help the country's shipbuilding and maritime sector face up competition from, particularly, Asian yards.34 Please indicate whether this proposal has already been adopted and provide details of the support measures envisaged therein.
 
Reply
 
We refer to the general comments in the introduction of this questionnaire.
 
(xxxiv) Before resigning, in October 2002, the former Dutch economic affairs minister announced that the Dutch Government would grant the domestic shipbuilding industry a new EUR 60 million subsidy package.35 Please indicate whether the measure has been adopted and whether any subsidies under the scheme have already been granted.
 
Reply
 
We refer to the general comments in the introduction of this questionnaire.
 
(xxxv) The German shipyard Meyer Werft is reported to have won an order from Indonesia's government-owned shipowning company Pt Pelni for a 15,000 GT passenger ferry. Germany's government-owned reconstruction and development bank Kreditanstalt für Wiederaufbau is reported to have provided an EUR 81.8 million soft loan to finance the construction of the vessel.36
 
Reply
 
See reply to question (xxvi) above.
 
(xxxvi) In October 2002, the Danish Government announced to have secured a broad political agreement to reintroduce shipbuilding subsidies. According to the plan, the new subsidies would be provided half by the government directly and half through the specialist shipfinancier DSF.37 Please provide the details of this new subsidy package and whether any subsidies under the scheme have already been granted.
 
Reply
 
We refer to the general comments in the introduction of this questionnaire.
 
(xxxvii) The Dutch shipyard Volharding is reported to have applied for operating aid under the temporary defensive mechanism in relation to a contract for the building of a 5,700 DWT ordered by an Italian owner. In addition to the information listed in the chapeau of question 9, please indicate (i) whether the aid has been already notified to the Commission for approval and, if so, please provide a copy of the notification; (ii) if the aid has already been approved by the Commission, please provide a copy of the relevant decision; (ii) explain in detail how the requfrement that there has been competition for the contract from a Korean shipyard offering a lower price has been assessed by the competent Dutch authorities and the Commission.38
 
Reply
 
We refer to the general comments in the introduction of this questionnaire. Concerning the question on competition from a Korean contract, see reply to question I.5. above.
 
(xxxviii) The authorities of the German State of Hamburg are reported to have approved a 4 million EUR subsidy package for the benefit of Hamburg shipyards on 12 November 2002 for the purpose of implementing the temporary defensive mechanism. The Federal German Government is reportedly expected to provide further 2 million EUR for the benefit of Hamburg shipyards.39
 
Reply
 
It is a normal procedure that a Member State sets aside a budget in order to be able to provide permissible aid.
 
(xxxix) German yard Kvaerner Warnow Werft is reported to have applied for operating aid of 6 per cent intensity under the temporary defensive mechanism in relation to a contract for the building of four 2,532 TEU container ships ordered by Norway and Cayman Islands-based Andreas Ove Ugland. The vessels will reportedly be then chartered to the German shipping company Hamburg Sued. It is also reported that the project will be financed by Germany's government-owned reconstruction and development bank Kreditanstalt für Wiederaufbau. In addition to the information listed in the chapeau of question 9, please indicate (i) whether the aid has been already notified to the Commission for approval and, if so, please provide a copy of the notification; (ii) if the aid has already been approved by the Commission, please provide a copy of the relevant decision; (ii) explain in detail how the requirement that there has been competition for the contract from a Korean shipyard offering a lower price has been assessed by the German authorities and the Commission.40
 
Reply
 
We refer to the general comments in the introduction of this questionnaire. Concerning the question on competition from a Korean contract, see reply to question I.5. above.
 
(xl) Two German yards belonging to the Aker Kvaerner Group, Aker MTV in Wismar and Kvaerner Warnow Werft in Rostock, are reported to have applied for operating aid of 6 per cent intensity under the temporary defensive mechanism in relation to a contract for the building of six 2,500 TEU container ships ordered by the Islamic Republic of Iran Shipping Lines. The two yards are reported to have applied for financing to Germany's government-owned reconstruction and development bank Kreditanstalt für Wiederaufbau. In addition to the information listed in the chapeau of question 9, please indicate (i) whether the aid has been already notified to the Commission for approval and, if so, please provide a copy of the notification; (ii) if the aid has already been approved by the Commission, please provide a copy of the relevant decision; (ii) explain in detail how the requirement that there has been competition for the contract from a Korean shipyard offering a lower price has been assessed by the German authorities and the Commission.41
 
Reply
 
We refer to the general comments in the introduction of this questionnaire. Concerning the question on competition from a Korean contract, see reply to question I.5. above

21 Regions to finance new French ferry, Fairplay, 8 January 2002; Brittany ferries poised to order another newbuild, Lloyd's List, 9 January 2002.
22 Olympic Explorer going nowhere fast Lloyd's List, 18 January 2002.
23 European Commission Notice 2002/C 21/03 - State Aid - Spain - C/40/00 (ex NN 61100) - Further restructuring of Spanish shipbuilding - Invitation to submit comments pursuant to Article 88(2) of the EC Treaty, O.J. C 21, 24 January 2002, p. 17.
24 O.J. No. L 37, 12 February 2000, p. 22, recently upheld by the European Court of Justice in judgment of 21 March 2002, case C-36/00.
25 German bank clears loan for Indonesian ferry project, Lloyd's List, 8 February 2002.
26 Paris backs Marseilles yard plan, Fairplay, 7 May 2002.
27 European Commission News Release No IP/02/8 16.
28 Unions fail to persuade Brittany Ferries to switch to local shipyard, Lloyd's List, 10 June 2002.
29 Arpeni plans orders in the face of delays, Trade Winds, 21 June 2002.
30 Berlin defies Brussels' aid delay, Fairplay, 27 June 2002; IG Metall urges coastal states to pay up yard aid, Lloyds List, 30 July 2002; German yards get subsidy go-ahead, Fairplay, 31 July 2002.
31 Flender gains newbuilding support, Fairplay, 4 July 2002; German shipbuilding battle, Fairplay International Shipping Weekly, 11 July 2002.
32 European Commission News Release No IP/02/812.
33 European Commission Notice 2002/C 222/04 - State Aid - France - Aid C 55/2002 (ex NN 53/2002) ) Aid to Soreni Ship Repair Company (shipbuilding) - Invitation to submit comments pursuant to Article 88(2) of the EC Treaty, O.J.
No C 222, 18 September 2002, p. 21.
34 Spanish aid to bolster technology capacity, Lloyd's List, 3 October 2002.
35 Subsidy uncertain as cabinet falls, Fairplay, 16 October 2002.
36 Jakarta and Meyer Werft in ferry deal and Meyer Werft bullish on better times ahead, Lloyd's List, 23 October 2002.
37 DSF hole in Denmark plan for yard aid, Lloyd's List, 24 October 2002.
38 Subsidy saves shipyard subsidiary and All is well at Volharding, Fairplay, 8 November 2002.
39 German Hamburg Approves 4.0 Mln Euro Subsidy for Shipyards, German News Digest, 13 November 2002.
40 Germans plead for state yard aid, Fairplay, 13 November 2002; German Kvaerner Warnow Werft Receives 128.6 Mln Euro Order, German News Digest, 13 November 2002; Ugland takes plunge - Norway and Cayman Islands-based Andreas Ove Ugland is back into newbuilding in a big way, Tradewinds, 15 November 2002.
41 Aker Kvaerner in six boxship deal for Iran, Lloyd's List, 19 November 2002.







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