MANILA, Philippines — To fund water projects in underserved areas in Cebu and Southern Luzon, the Development Bank of the Philippines (DBP) signs P1.097 billion in the term loan agreement with Cebu-based 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,” says Emmanuel G. Herbosa, DBP president and chief executive officer.
AWC is engaged in water source development, efficient water systems design, and construction of transmission and distribution lines. It presently has water supply agreements with various local government units and water districts.
DBP provides credit support
DBP, the seventh largest bank in the country in terms of assets, provides credit support to four strategic sectors of the economy, including infrastructure and logistics, micro, small and medium enterprises (MSMEs), social services and community development, and the environment.
From January to September last year, the bank released PhP374.85 billion in loans to various sectors, 14 percent higher than the PhP329.07 billion disbursed in the same period in 2019.
About PhP175.72 billion of the total amount went to the infrastructure and logistics sector. This was followed by loans to social services, which amounted to PhP77.23 billion; environment projects, PhP43.12 billion and MSMEs, PhP26.48 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.
Merged with the Philippine Sustainable Sanitation Roadmap, the PWSSR drew the 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.
In recent developments, the DBP received PhP12.5 billion in additional capital from the national Government, pursuant to Bayanihan to Recover As One Act. The infusion would provide the bank additional resources to extend low-interest loans to sectors affected by the coronavirus pandemic.
The Finance Department (DOF) said 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. (BG/Headline PH)