DBP Forest investments near P70M

The DBP Forest, the environment-friendly lending program of the Development Bank of the Philippines (DBP), has invested over P68.4 million in 17 projects since April 2005.

Starting with an initial seed fund of P50 million from the Kreditanstalt fur Wiederaufbau (KfW) of Germany, the program was designed to protect the coastal areas, the conservation of soil and water in the uplands, and improving spawning grounds for terrestrial and marine aquatic life.

It also supports and encourages the reforestation of open and denuded areas through the planting of relatively high value fruit trees and other useful plant species.

Among the species that have been planted in the projects are mangrove, fruit trees like mango, rambutan, pomelo, lychee, durian, tamarind, cacao, lanzones, coffee, and forest trees like kakawate, ipil-ipil, falcata, rubber trees, rattan, abaca, bamboo, raintree, and mahogany.

"Through this initiative, we are starting in our own little way and literally planting the seeds for a sustainable future," DBP president and chief executive officer Reynaldo G. David.

It assists in the development of downstream industries in the countryside by tapping as "forest partners" the state universities and colleges, local government units (LGUs), and people’s organizations (POs). They are awarded community-based forest management (CBFM) agreements.

The CBFM is a program of the Department of Environment and Natural Resources (DENR) which empowers forest occupants to develop and manage forest lands for a period of 25 years, renewable for another 25 years.

David explained that DBP also raises additional funds from front-end frees of its borrowers with wholesale loans of P10 million and above, or retail loans of P20 million.

Among those who have directly or indirectly contributed to the cause are the Bank of the Philippines Islands, Banco de Oro Universal Bank, One Network Rural Bank, the Philippine National Bank, the People’s Credit and Financing Corp., Aboitiz Transport Systems, and Equitable PCI Bank.

Some of the beneficiaries of DBP Forest are four projects in Bukidnon, Infanta, Sarangani, Davao City, Guimaras, Cagayan, and Bataan. – Ted Torres