DBP has P10B for education loans

MANILA, Philippines - The Development Bank of the Philippines (DBP) is urging the local government and educational institutions to take advantage of its P10-billion Financing for Public Basic Education (FPBE) loan facility that aims to assist in the delivery of educational services, especially to low-income communities.

DBP president and chief executive officer Francisco F. Del Rosario Jr. said that the facility would help catalyze the improvement of the public school system by encouraging local government units  (LGUs) through the local school boards to invest in facilities that would improve the learning environment of public schools.

Maximum loanable amount is up to 90 percent of the total project cost or winning bid price, whichever is lower. Depending on the nature of the project and repayment capacity of the client, the maximum tenor of the loan is 10 years inclusive of up to two years grace period on principal.

All of DBP’s 15 regional marketing centers, through its ward-branches, are accepting loan applications under the FPBE.

The FPBE targets low-income communities, such as 4th to 6th class municipalities and 4th to 5th class provinces.

“We will prioritize regions that are most in need of school facilities such as Central Luzon, Southern Luzon, Bicol, Central Visayas, Eastern Visayas, and Southern Mindanao,” the bank chief executive added.

The facility will specifically fund land acquisition for education-related purposes and construction, repair, or renovation of classrooms, libraries, laboratories, restrooms, recreational areas, study areas, and similar school facilities. 

The LGU-borrowers could also access funding for the purchase of furniture such as armchairs, desks, bookshelves, audio-visual equipment, transportation, school supplies and materials.

DBP has at least P69.6-billion loanable funds for priority development programs from the public or private sector. It comes from both internally-generated deposits or earnings, or sourced from overseas development agency (ODA) funding.

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

Of the total, P22.1 billion is 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.

Target of the 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 Project (LIDP) 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.