EU okays German aid to RI

EU okays German aid to RI

STRASBOURG, France (AFP): The European Commission gave Germany the green light Tuesday to subsidize the construction of two passenger ferries for Indonesia, but cast doubt on similar aid for four Dutch-built vessels.

Meeting in this French city, the EU's executive arm said it was reassured that the project had "genuine development content," and that the offer of financial help was opened to all shipyards that bid to build the ships.

Winner of the contract -- worth 153.2 million euros (US$155.5 million) -- was the Meyer shipyard in Papenburg. Each ship will be able to carry 2,170 passengers.

But the commission said it had doubts that the Netherlands met similar conditions for the building of two general cargo ships and two pulp and paper ships, also for Indonesia.

It said it would investigate to see if the deal conflicts with strict EU rules that limit state subsidies to shipbuilding.

The Netherlands offered to pay 25 percent of the 108.9 million euro cost of building the four vessels at Pattje Shipyards. But unlike the German case, the grant was to go to the ships' Indonesian buyers, "which are small, privately-owned companies," the commission said.