MANILA, Philippines — The Development Bank of the Philippines (DBP) has provided a P1.097 billion loan to fund various water projects in underserved areas in Cebu and Southern Luzon.
In a statement, DBP president and chief executive officer Emmanuel Herbosa said the bank has signed a term loan agreement with Abejo Waters Corp. (AWC) for the development of water supply and distribution system in Cebu and Quezon province.
“DBP is one with AWC in providing safe and sustainable water to unserved and underserved communities, thereby improving the quality of people’s lives, and promoting growth and development,” Herbosa said.
Cebu-based AWC is engaged in the development of water sources, design of efficient water systems, and construction of transmission and distribution lines. It presently has water supply agreements with various local government units and water districts.
DBP is the seventh largest bank in the country in terms of assets. It provides credit support to four strategic sectors of the economy, including infrastructure and logistics, micro, small and medium enterprises, social services and community development and the environment.
From January to September last year, the bank released P374.85 billion in loans to various sectors, 14 percent higher than the P329.07 billion disbursed in the same period in 2019.
About P175.72 billion of the total amount went to the infrastructure and logistics sector. This was followed by loans to social services, which amounted to P77.23 billion; environment projects, P43.12 billion and MSMEs, P26.48 billion.
According to Herbosa, the DBP continues to align its water sector programs with the Philippine Water Supply Sector Roadmap (PWSSR) to help ensure adequate long-term availability and accessibility to potable water nationwide.
This PWSSR has been merged with the Philippine Sustainable Sanitation Roadmap in order to come up with the comprehensive Philippine Water Supply and Sanitation Master Plan. This master plan sets the direction for the country’s water and sanitation sector, and determines the strategies, policy reforms and priority programs to achieve the water supply and sanitation national targets.
Meanwhile, the DBP recently received P12.5 billion in additional capital from the national government, pursuant to Bayanihan to Recover As One Act.
The Department of Finance (DOF) said the infusion would provide the bank additional resources to extend low-interest loans to sectors affected by the coronavirus pandemic.
It will also allow the DBP to act as a wholesale bank that will buy loans of smaller banks, cooperatives and other institutions to free up more credit for the benefit of other industries that need to recover from the economic downturn caused by the pandemic.