DBP funds P44 B electrification projects

State-run Development Bank of the Philippines (DBP) has extended P43.73 billion in financing support under its Financing Utilities for Sustainable Energy Development (FUSED) program, which seeks to support power generation and distribution projects in rural areas.

“As of June 2019, DBP has already released a total of P43.73 billion under FUSED, 22.58 percent of which comprised releases to rural electric cooperatives that cater to underserved communities in various parts of the country,” DBP president and chief executive officer Emmanuel Herbosa said in a statement.

Under the FUSED program, DBP provides financing for projects involving power generation, distribution and transmission, as well as the purchase of needed equipment and machinery including enhancement of capacity of rural power suppliers.

Originally, Herbosa said the DBP’s target was to support P40 billion in energy projects by the end of the FUSED program in 2030.

This figure accounts for 1.43 percent out of the P2.8 trillion total estimated investment requirement for power generation and distribution under the Philippine Energy Plan 2012-2030.

Due to DBP’s efforts, Herbosa

said the National Electrification Administration (NEA) recently conferred the “Golden Dagitab” award to the bank in recognition of its FUSED program.

“We are honored by this recognition bestowed by NEA. These recognitions inspire us to look beyond our role as a bank and validates that we are on track in fulfilling our mandate of promoting nationwide growth and development,” Herbosa said.

NEA’s “Golden Dagitab” awards was organized in celebration of its 50th founding anniversary and aims to recognize various industry partners and stakeholders who have played a key role in strengthening the government’s rural electrification program.

DBP is the eight largest bank in the country, with assets totaling P667.91 billion as of the end of June.

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 (SMEs), social services and community development and the environment.

DBP expanded its development lending activities in the first semester as shown by its gross loan portfolio, which grew 19.79 percent to P368.33 billion.