DBP approves ₧2.1B loan for energy projects

THE Development Bank of the Philippines (DBP) extended a total of P2.1-billion loan to two hydroenergy projects that seek to boost both the Luzon and Visayas grids. The state-owned bank said in a statement last Thursday that loans provided to Matuno River Development Corp. (MRDC) and Taft Hydroenergy Corp. (THEC) were under the “Financing Utilities for Sustainable Energy Development” (FUSED) program.

“With these projects, we hope to accelerate the use of renewable power resources and increase the country’s green energy mix,” he said. “Green financing can ensure that sustainable socioeconomic development can be achieved while protecting the environment.”

For MRDC, the funding amounts to P1.1 billion, which is earmarked to build an eight-megawatt (MW) hydroenergy power plant located in Barangay San Rafael, Bambang, Nueva Vizcaya.

The plant is expected to generate an additional 42 gigawatt hours (GWH) for the Luzon Grid via the National Grid Corp. of the Philippines (NGCP).

THEC, meanwhile, has secured P1-billion financing. It was for the construction of a 16-MW hydropower project in Tubig River, Barangay San Rafael, Taft, Eastern Samar, which is expected to supply 70GWH to the Visayas grid.

The DBP said that the THEC plant will “help address the inadequate supply of stable and affordable electricity in the region particularly in Samar Island and Leyte Province.”

“Despite the constraints posed by the pandemic, commissioning of both projects is already in the planning stage, and commercial operations will soon commence,” Herbosa said. The state-run bank has released P41.57-billion worth of financing under its FUSED program for energy-related projects as of end-october last year.

Last month, the DBP launched Solar Merchant Power Plant (SMPP) Financing Program, which seeks to provide loans for utility-scale solar power developers in the country. It also aims to encourage more investments in the renewable energy sector.

“DBP is ready to provide financing to viable solar power developers for their capital expenditures such as the construction or expansion of their infrastructure facilities, acquisition of machineries and equipment, among others,” Herbosa said.

The loan facility covers “solar power developers intending to sell electricity through the Wholesale Electricity Spot Market with a longer tenor of up to 12 years with a one year grace period on principal payment.”

Qualified borrowers for the program may loan up to 60 percent of the total cost for projects in Luzon and up to 50 percent for projects in Visayas.