DBP funds 2 major building projects in Cebu

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) has extended P4.5 billion in loans for the construction of two major buildings in Cebu, which are seen to improve the delivery of basic government services and boost the economy in the province.

In a statement, DBP president and chief executive officer Cecilia Borromeo said the bank signed a P1.5-billion loan agreement with the Cebu provincial government for the construction of new 20-story office building.

Borromeo said the building will rise inside the Cebu capital compound and house most of the government offices in the province.

“The building will serve as a ‘one-stop shop’ and provide comfort and convenience to the transacting public, while providing income to the local government through the lease of the commercial spaces in the property,” she said.

Borromeo said, the proposed structure is designed to efficiently use energy, reduce wastage, minimize pollution and provide adequate ventilation. She said it will be loaded with solar panels and in-house waste and sewage management facility.

“One floor will be allotted for the Emergency Operation Center of the Provincial Disaster Risk Reduction and Management Office and its command center, which will house state-of-the-art equipment for province-wide monitoring and early warning system for natural calamities,” she added.

Another P3-billion financing deal was also forged by DBP with Cebu Landmasters Inc., who will put up a mixed-use development tower in Mandaue City, Borromeo said.

“Strategically located at A. S. Fortuna Street in Mandaue City, the Astra Centre shall have a mall, office spaces, condominium units, and shall also house the first Radisson Red Hotel in Asia,” she said.

The DBP chief said the loan will also support the company’s working capital requirements.

“These projects illustrate how DBP is assisting local government units in improving their service delivery and partnering with the private sector to stimulate economic activity in the region,” Borromeo said.

Earlier, Borromeo said DBP has committed to increase it funding support to areas outside Metro Manila, especially for infrastructure and environmental projects.

In line with this, DBP boosted its lending activities in the first half of the year, with a total loan portfolio of P250.59 billion. About P72.1 billion of this amount went to local government units, state firms and other private businesses.

DBP earlier said its more aggressive lending activities drove up the bank’s net income, which rose four percent to P2.76 billion in the first half of 2018.

Also contributing to its growth is the expansion of its deposit base to P431.65 billion from P344.4 billion in the same period last year.

The bank remained the eighth largest bank in the Philippines, with total assets reaching P617.87 billion as of end-June.