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Dutch Inland Waterway Aid Could Drive Repowers

Maritime Activity Reports, Inc.

July 6, 2005

The European Commission authorized a Dutch aid scheme on the basis of which subsidies can be granted for the replacement or retrofitting of diesel engines used by inland waterways vessels. The scheme will be in force for five years with a total budget of approximately € 20 million.

The aim of the scheme is to achieve a substantial reduction in the NOx’s emissions of the existing inland waterways fleet[1] in the Netherlands by subsidising low-emission diesel engines. In particular, the scheme will grant subsidies for investment in:

acquisition of a low-emission ship's diesel engine instead of a conventional ship's diesel engine when building a new ship or re-engineering an existing ship;

acquisition of a low-emission ship's diesel engine instead of overhauling a conventional ship's diesel engine currently in use; retrofitting a current conventional ship's diesel engine into a low-emission one.

The scheme will benefit vessels registered in the Netherlands irrespective of nationality.

The Commission considers the scheme to be in line with the EC Treaty[2], in particular with the Guidelines on State aid for environmental protection[3]. On the basis of these Guidelines, investments in equipments intended to reduce or eliminate pollution and nuisances can be allowed.

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