DBP launches new financing facility for water sanitation

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) recently launched a new financing program to assist private firms and government units in developing water treatment and sanitation facilities, a top official said yesterday.

The Lending Initiatives for Sanitation (LINIS) Program seeks to improve the compliance of establishments with environmental laws, such as Republic Act 9275 or the Clean Water Act of 2004 and Presidential Directive 2018-0081, by providing financing assistance specifically for water sanitation projects.

DBP president and chief executive officer Emmanuel Herbosa said this program is in line with the government’s efforts to achieve universal access to sanitation.

“The DBP LINIS program is intended to help private companies, water districts, cooperatives, and local government units comply with environmental rules, particularly in the establishment of waste water treatment facilities,” Herbosa said.

Under the program, eligible entities may borrow from DBP to finance septage and sewerage system projects, as well as waste water collection, transport, treatment and disposal.

Herbosa said the program features a cost sharing scheme for septage and sewerage projects of LGUs under the National Sewerage and Septage Management Program (NSSMP), where DBP can finance up to 100 percent of the total share of the LGU counterpart, subject to certain conditionalities.

He said the target beneficiaries for this cost sharing scheme include 17 highly urbanized cities (HUCs) outside Metro Manila, all non-HUCs, and first-class municipalities.

 “For LGUs and water district projects not covered by the NSSMP, the maximum loan amount shall be up to 100 percent of the validated total project cost,” Herbosa said.

DBP is the eighth largest bank in the country, with total assets amounting to P669.75 billion as of end- 2018.

Earlier, the bank committed to increase its funding support for environmental projects, especially in far-flung areas of the country.

DBP said it is ready to provide financial assistance to towns and municipalities to improve their water sanitation and sewerage systems, particularly in popular tourist destinations in the country.

According to latest data, the bank extended P10.34 billion in loans for environmental projects last year.

Among those financed by the DBP include water sanitation projects, such as the waste water treatment facility of Boracay Island Water Co. Inc., and the Paranaque sewerage treatment plant (STP) of Maynilad Water Services, Inc.