DBP allots P70-B for 3 priority lending areas

The Development Bank of the Philippines (DBP) has set aside at least P70 billion for its three priority lending areas: small and medium enterprises (SME), transportation and power.

Half of the amount, or P35 billion, will be allotted to the SME sector which the Arroyo administration has identified as one of its priority areas.

Funds will also be provided for major infrastructure programs under DBP’s Sustainable Logistics Development Program (SLDP) which is designed to improve basic infrastructure for the movement of basic commodities.

Loans will also be available for environment conservation and infrastructure activities related to the transport and storage farm produce such as processing and marketing centers, aggregating center, reefer transportation equipment, bulk terminals, handling and transport equipment for both land and sea.

The bank has so far allocated P8.5 billion for environment and clean technology projects. "Gas and fuel companies may avail of these funds in implementing the Clean Air law," bank officials said.

Funds will come from multilateral and bilateral institutions like the Asian Development Bank (ADB), the World Bank, the Kreditanstalt fur Wideraulfau (KfW) of Germany, and the Japan Bank for International Cooperation (JBIC), and internally generated funds of the bank.

The government financial institution (GFI) also plans to tap the foreign lending market for additional funds.