Cebu to get sizeable chunk of DBP funds

As one of the identified priority credit beneficiaries, Cebu will get a sizeable chunk of the loan offer of the Development Bank of the Philippines (DBP) intended for infrastructure projects.

DBP President and Chief Executive Officer Reynaldo David announced that the bank is prioritizing to release and approve loans that are geared towards infrastructure development in transportation sector, specifically the Roll-on-Roll-off (RoRo) projects.

Although David did not disclose the total loan portfolio for the development of Cebu’s transport industry, he said that DBP will be prioritize this sector, particularly projects involving Ro-Ro routes and floating bridges.

"Cebu has become an important hub for economic activities, and that’s why we will help ensure the movement of vehicles from here to the rest of the Visayas," he said.

The Ro-Ro routes are aimed at providing easy farm-to-market access in the Visayas.

The four missionary routes that DBP supported last year included, Liloan, Cebu to Jetafe, Bohol; Dumanjug, Cebu to Guihulngan, Oriental Negros; Santander, Cebu to Sibulan, Negros Oriental; and Santander, Cebu to Larena, Siquijor.

In his recent visit to Cebu, David said the four routes are among the 20 missionary routes that the bank was tasked to open in 2007 to complete the 49 Ro-Ro connections under President Arroyo’s "Strong Nautical Highway Project."

While the Ro-Ro terminal system is currently following a vertical route, the DBP nautical highway is positioning itself to go horizontal, he said.

The establishment of more RoRo facilities connecting Cebu to the rest of the provinces and islands in Southern Philippines, is expected to further boost the both local and international tourism sector.

On its 61st year, DBP has become a major conduit of official development assistance (ODA) funds from multilateral and bilateral institutions and it continues its developmental thrusts on economic pump-priming and program-type lending to strategic sectors.

Nationally, the bank is also announcing its expanded allocation of credit facility to micro, small and medium entrepreneurs (MSMEs) following the thrust of the government to provide financial assistance to potential but cash-trapped entrepreneurs.

A total of P50 billion this year additional budget to be added to the bank’s existing loan-able amount for the MSME sector.

About P10 billion of which will be allocated to the micro-lenders through DBP’s conduit rural banks and micro-finance institutions, he said.

While about P30 billion to P40 billion will be dedicated to be lent to SMEs, David added. — Ehda Dago-oc