Davao Occidental gets P1.8-B loan for infra projects

The Development Bank of the Philippines (DBP) has granted a P1.8-billion loan to Davao Occidental for the financing of various infrastructure and livelihood projects in the province.

In a statement, DBP said it signed a P1.8-billion loan agreement with the provincial government of Davao Occidental to support the local government’s programs.

DBP president and chief executive officer Cecilia Borromeo said the bank expects the loan assistance to help speed up the industrialization of the newest province in the country.

“We look forward to creating a very progressive Davao Occidental. I hope that this will be the first of many projects that we can do together with the provincial government,” Borromeo said.

According to the DBP, the loan amount will cover the construction of the provincial hospital, provincial capitol building and barangay halls. It will also be used to support the province’s water resource development and housing programs.

The bank said the loan will also finance agri-forestry systems, provincial livestock and dairy program, small cottage industries and craft villages, as well as the acquisition of heavy equipment and medical equipment.

Davao Occidental, the 81st and newest province in the country, was created by virtue of Republic Act 10360, approved on Jan. 14, 2013. It was carved out of the province of Davao del Sur, and composed of five municipalities.

The Duterte administration is planning to embark in a massive infrastructure buildup program, dubbed Build Build Build which will require up to P8 trillion in investments. Among the agenda of the administration is the development of the provinces and the countryside to enable an inclusive economy.

In line with this, the DBP earlier said it is pivoting towards becoming the country’s infrastructure bank, as ordered by Finance Secretary Carlos Dominguez.

Dominguez had said he wanted to convert the DBP into an infrastructure bank to help facilitate the government’s infrastructure program.

The bank earlier opened the Infrastructure Contractors Support Program, which is aimed towards providing the financing needs of local contractors and funding gaps in the infrastructure development in the country.