DBP tapped as f inancial advisor for projects endorsed by MinDA
DAVAO CITY — The Mindanao Development Authority (MinDA) has tapped the Development Bank of the Philippines (DBP) as financial advisor for 12 major projects and as a possible loan provider for other proposed ventures in the southern islands.
At the signing of the memorandum of understanding Friday, MinDA chair Abul Khayr D. Alonto said the partnership with the government-run bank is expected to improve access to funding support for projects that “will improve Mindanao and create jobs, particularly in the Bangsamoro areas.”
The 12 projects described as “catalytic” are: the P735 billion Mindanao Railway System, whose first segment – Tagum-Davao-Digos – is set to started construction this year; a P16 billion portion of Marawi City’s rehabilitation, including livelihood and business components, land resource management and social services; P42 billion agro-economic zones in Zamboanga del Norte, Zamboanga del Sur, Zamboanga Sibugay, Agusan del Sur, Maguindanao, Lanao del Sur, and Basilan; a P15-billion Tawi-Tawi Integrated Development Project; the P25 billion Picong FreePort and Ecozone in Picong, Lanao del Sur; the P39.2 billion Mindanao River Basin integrated flood control projects; the P300 million Mindanao Executive Leadership Academy in Maramag, Bukidnon; P75-billion Mindanao Development Corridors Interregional Connectivity projects for roads and bridges; the P100 million Tourism Assistance Center projects in 20 strategic areas; the P9.8 billion New Zamboanga Airport in Mercedes, Zamboanga City; the P100 million Polloc Freeport and Ecozone in Maguindanao; and the P9.8 billion General Santos Aerotropolis, whose feasibility study has yet to be started.
DBP President Cecilia C. Borromeo said the bank is ready to provide financial support to MinDA, particularly for projects in “infrastructure that will make transportation of goods easier, also infrastructure that will cater to social services like hospitals.”
On the provision of loans for other projects that will be put forward, MinDA and DBP will be discussing how to proceed.
Ms. Borromeo said among the ventures that DBP is prioritizing for funding support are those in power, and bulk water supply and distribution.
“We are, after all, designated by the national government as the infrastructure bank of the Philippines,” she added.
Assistant Secretary Romeo M. Montenegro, deputy executive director of MinDA, told BusinessWorld after the agreement signing that he is hoping that “small renewable energy projects in Mindanao will get funded by the bank.”
“We need financiers for these (about 270 green energy projects) so that we can eventually balance our (power) mix,” he said, noting that power generation in Mindanao has been dominated by fossil fuel with the entry of new coal-fired plants in recent years.
ISLAMIC BANKING
Meanwhile, Ms. Borromeo also noted the urgent need to establish an Islamic financial framework, especially now after the ratification and impending implementation of the Bangsamoro Organic Law.
“We hope the legislators in this part of the country (Mindanao) will pursue an Islamic banking framework of the Philippines so that we can optimize the opportunities that are made available to Al-Amanah,” said Ms. Borromeo, referring to Al-Amanah Islamic Investment in the Philippines, a wholly-owned subsidiary of DBP.