DBP allocates P31-B production-related, infrastructure projects

The Development Bank of the Philippines (DBP) is prepared to allocate P31 billion for transportation and infrastructure projects related to improving the country’s food chain.

The government financial institution (GFI) sourced the amount from official development assistance (ODAs) which have reached P126 billion since 1991. It further indicated that 12 programs being currently being implemented worth P62 billion with total releases to sub-projects amounting to P29 billion.

Of the total amount of P31 billion, DBP allocated P3.78 billion on projects related to the Road Roll-On, Roll-Off terminal system (RRTS), food cold chain, and grains highway.

The funds available will fall under the bank’s Sustainable Logistics Development Program (SLDP).

"The SLDP as an investment financing facility for a comprehensive and integrated transport system," DBP chairman Vitaliano N. Nañagas said in a conference organized by the Distribution Management Association of the Philippines (DMAP).

Emphasizing the SLDP’s role in bringing down the cost of commodities in the marketplace, Nañagas reported that DBP approved a total of P3.78 billion in loans to projects under the three components of the program: the road roll-on, roll-off terminal system (RRTS), cold chain, and grains highway.

Under the RRTS component, P1.8 billion for 12 projects involving vessel acquisition and upgrading and multi-purpose port construction was likewise passed.

Another P2.2 billion for 11 projects was budgeted for pipeline projects. For the cold chain and grains highway, on the other hand, a total of P991.3 million and P949 million, respectively, have been allocated to private sector investments.

Nañagas also underscored the development of three major nautical highways – the Eastern, Central and Western seaboards – as part of concrete efforts to build an improved transport system for the efficient movement of people and commodities.

The creation of the NDC Maritime Equity Corp. of the Philippines (NMEC) that is targeted for launching by the last quarter of the year. NMEC will serve as a financing vehicle that will lease vessels to operators of priority shipping projects.

Discussing the benefits of the SLDP as a poverty alleviation strategy, Nañagas added: "If we can bring down the price of vegetables in Manila by P1 because it is easier to store the vegetables rather than to throw them away, we would have helped 14 million people in Manila. If we can bring down the price of rice in Region 2 by P2, we would have helped the four million people of Region 2."