MANILA, Philippines — State-run Development Bank of the Philippines (DBP) has extended P1.1 billion in loan assistance to fund the construction of an 11.9 megawatt hydroelectric power plant in Lanao del Norte, a top official said yesterday.
In a statement, DBP president and chief executive officer Emmanuel Herbosa said the bank has signed a P1.1 billion term loan agreement with Liangan Power Corp. (LPC) to improve the energy supply in Mindanao.
Herbosa said this is in line with the national government’s efforts to promote reliable and environment-friendly sources of energy, and to drive inclusive growth in the southern region.
“We are thrilled to be working with Liangan Power Corp. in this project that will produce a reliable supply of renewable energy at an affordable cost,” Herbosa said. “This should aid in addressing the country’s growing need for sustainable energy supply, particularly in Mindanao.”
According to DBP, the envisioned hydroelectric power plant is the first project to be developed by LPC in the renewable energy sector.
The DBP said the company entered into a joint venture agreement with the Province of Lanao del Norte, forming the first public private partnership between a provincial government and the private sector for a hydroelectric power project.
The project involves a run-of-the-river and diversion-type power station to be located in the Liangan River at Barangay Pagayawan, Bacolod, Lanao del Norte.
Construction is slated to start in the third quarter of the year, with full commercial operations to start in 2021
DBP is the eight largest bank in the country with assets totaling P667.91 billion as of end-June this year. The bank has been designated as the country’s infrastructure bank by the national government.
Aside from infrastructure and logistics, it also provides financing support to other sectors, such as small and medium enterprises, social services and community development, and the environment.
In the first half of the year, the DBP booked a total net income of P3.1 billion, 12.32 percent up from P2.76 billion in the same period in 2018.
Herbosa said DBP’s gross loan portfolio as of end-June increased by 19.79 percent to P368.33 billion from the P307.47 billion in the previous year.
Meanwhile, he said the bank’s deposit levels rose to P464.83 billion from P431.65 billion, driven by the aggressive marketing and financial inclusion initiatives undertaken through its expanded branch network.
Currently, DBP has a total of 137 branches, including 10 branch lite offices that cater mostly to underserved areas in the country.
DBP also has a network of more than 800 ATMs, most of which are located in unbanked areas.