MANILA, Philippines - To keep up with its commitment to finance environment-friendly power projects, state-owned Development Bank of the Philippines (DBP) will provide a P900 million loan to Mindanao-based Asiga Green Energy Corp. (AGEC).
In a statement, DBP said the loan would finance the construction of the eight-megawatt (MW) Asiga hydropower plant in Santiago, Agusan del Norte.
In signing the loan agreement with AGEC, DBP said the project is part of the bank’s continuing thrust to promote renewable sources of energy in the country that protect the environment through reduced greenhouse gas emissions.
Aside from helping stabilize the power supply in the Caraga region, the hydropower plant will also reduce an estimated 35,575.41 metric tons of carbon dioxide emitted to the atmosphere annually.
The project is expected to employ 100 to 300 workers during the two-year construction period.
The hydropower facility will also provide permanent employment for 25 people who will man and operate the power plant.
DBP had set aside about P19 billion for its Green Financing Program (GFP), an umbrella program for the environment sector and supports the Philippine Development Plan 2011-2016’s objective of a cleaner and healthier environment.
Todate, DBP has put in place more than P10 billion projects under the GFP.
Most of the projects are for the acquisition of e-vehicles in the National Capital Region, Cavite, Ilocos Norte, Nueva Vizcaya, and Guimaras.
Other pipeline projects include construction of bio-ethanol distillery, power and wastewater treatment plants, construction of a green charcoal plant, a ferro-nickel smelting plant, and construction of a sanitary landfill.
The GFP would also promote green projects of both the private and government sector by providing financing and technical assistance.
Maximum loan amount would be determined based on eligible loan components, funding requirement of the sub-project, borrowing capacity of proponent, and cash flow of the project.
Eligible borrowers are private corporations, LGUs, government-owned-and-controlled corporations, government agencies, cooperatives, and participating financial institutions or microfinance institutions.
Projects eligible for finan-cing include pollution and waste management projects, green building construction and property management including hotels, resorts, and restaurants, green transport, and other environment-friendly initiatives like energy efficient lighting, urban greening, rehabilitation of water bodies and endangered ecosystems, and eco-tourism projects.