DBP opens P69.6-billion window for priority development programs

MANILA, Philippines - The Development Bank of the Philippines (DBP) is making available at least P69.6 billion in loanable funds for priority development programs for both the public and private sectors.

The funds come from internally-generated deposits, earnings or sourced from official development assistance (ODA) funding.

The government financial institution said it had priority allocations based on the country’s development goals.

Of the total, P22.1 billion will be focused on the small and medium enterprise (SME) sector. Majority, or P13.9 billion, of the amount will be sourced from the Japan International Cooperation Agency (JICA) under its Industrial Support and Services Expansion Program II.

The target of these funds are private enterprises, manufacturing and non-manufacturing enterprises, and SMEs with total assets of less than P200 million.

DBP can likewise tap P20.7 billion to support infrastructure and logistics. The JICA-funded Logistics and Infrastructure Development (LIDP) project with P14.7 billion in funds promotes the development of roll-on roll-off (RORO) and road networks, food chain transport and storage systems particularly for grains and perishables such as fish, fruits and vegetables. Eligible borrowers under this facility are private corporations, LGUs, GOCCs and cooperatives.

Recently it launched the ACPC-DBP cooperative agricultural lending facility focused on lending to cooperative banks and cooperatives extending agricultural loans to small farmers and fisherfolk.

The DBP is also targeting families of overseas Filipinos looking to establish small businesses to augment the earnings from their foreign-based relatives. DBP has partnered with the Land Bank of the Philippines (LBP) and the Overseas Workers Welfare Administration (OWWA) for this facility.

The DBP is making available P21.2 billion to fund environment-related initiatives such as water supply and sanitation projects, new and renewable energy projects, and industrial pollution control and abatement. Ten lending facilities are available for this sector, with the JICA-Environmental Development Project for new and renewable energy projects, and other environmental projects having the biggest available fund of P11.5 billion.

This facility targets government-owned-and-controlled corporations (GOCCs) and local government units (LGUs) including those with funding requirements for water infrastructure and service; water districts; private corporations including those operating as water service providers; and consortiums or joint ventures of water districts.

“We are encouraging investors to tap our funds in pursuit of their various developmental initiatives,” Francisco F. del Rosario, DBP president and chief executive officer, said.

Other lending facilities that may be tapped for environment-related projects are the Industry Support Loan Project funded by the Japan Bank for International Cooperation (JBIC) which targets private individuals, corporations, LGUs, and GOCCs for initiatives eligible under the Clean Development Mechanism (CDM) and the World Bank-funded Rural Power Project which assists in the provision of adequate, affordable and reliable energy services in partnership with the private sector.