$500-M JBIC loan package remains largely untapped

The $500-million Japan Bank for International Cooperation (JBIC) V loan package remains largely untapped as National Government guarantees for foreign funded projects are nearly "over-tapped."

The JBIC V fund is solely allocated for projects undertaken through the Development Bank of the Philippines (DBP), which has already allocated the funds for several development projects.

Of the total amount, the DBP had wanted to allocate some P15 billion of the estimated P25-billion worth of the JBIC fund to various projects, including cyberpark development, information technology projects, hospitals and schools.

So far, it has been able to draw P100 million while another $150 million is set for release this year.

DBP president Remedios L. Macalincag said the release of the $150 million has been delayed due to the inability to some of the project proponents to meet certain requiremments. Likewise, the JBIC is recommending additional sectors for coverage of the fifth phase of their $500-million funding.

The remaining $250-million is still available to the DBP, which is not burdened by any commitment fee. However, this may not be available within the year.

Macalincag explained that the National Government guarantees for funding is nearing its ceiling, and that there are other projects posted by other government agencies or financial institutions which require National Government guarantees.

"We may have to wait until next year since government has to extend guarantees to other projects," the DBP president said.

Another reason for the possible delays in the utilization of the remaining $250 million, is the desire of the National Government to use it for its national housing projects.

Industry sources said that the National Government wants to use the huge amount for its targeted one million homes by 2004. However, the National Economic and Development Authority (NEDA) had repeatedly said that government should keep its hands off the JBIC fund.

Macalincag, in a separate interview, also said that the amount was extended for specific sectors, which did not include housing.