Brussels, 28/12/2000 (Agence Europe) - The European Commission has decided not to raise any objections to the development aid Germany plans to grant for a dredger earmarked for Vietnam. The aid in question will be used by the Vietnamese public enterprise Waterway Dredging Company No 1 (WADRECO 1) for the acquisition of a dredger from a German shipyard. After checking that the aid includes a "development" element and that it is not likely to give an advantage to a predetermined shipyard, the Commission concluded that the conditions applicable to state aid for shipbuilding were fulfilled.
This aid differs from operating aid linked to contracts that could still be granted to Community shipyards until the end of this year but that will be banned starting on 1 January 2001. It constitutes development assistance enabling the Vietnamese public enterprise Waterway Dredging Company No 1 (WADRECO 1) to buy a dredger with capacity of 1500 m3 for an estimated DEM 25.5 million (EUR 13 million). The aid is expected to be granted by the German government in the form of a subsidised loan of up to DEM 25 million (EUR 12.8 million). It aims to guarantee that major ports such as Haiphong and Hon Gai and the navigable waterways of the Red River towards Hanoi can remain open to vessels. These ports are important for the Vietnamese economy. The dredger will replace certain obsolete dredgers, most of which are over 30 years old and practically no longer operational.