DBP opens P15.3-billion facility for logistics, infrastructure projects

MANILA, Philippines - The Development Bank of the Philippines (DBP) is opening a P15.3-billion loan facility focused on logistics and infrastructure systems.

The long-term facility zeroes in on infrastructure products like roll-on, roll-off (RO-RO) vessels and related facilities including ports and ramps; toll roads; farm-to-market roads; as well as maintenance equipment.

Other projects are packaging, transport, and distribution facilities, projects under the bulk grains highway and projects under the cold chain highway.

 “This facility will improve farm-to-market efficiency and enhance movement of products and goods to the major trading areas to help boost the domestic economy,” Reynaldo G. David, DBP president and chief executive officer, said.

He said the facility can be accessed by private corporations with at least 70-percent Filipino ownership, government-owned and – controlled corporations (GOCC) and local government units (LGUs). Borrowers are required to provide counterpart funding equivalent 30 percent of the project cost.

The facility is sourced from the Japan International Cooperation Agency (JICA) with a disbursement period of seven years.

Earlier, DBP made available P9.59 billion for infrastructure and logistics lending. It was able to involve the Land Bank of the Philippines (LBP), Philippine Export and Import Credit Agency (PhilExim), and the SB Corp.

“Another 41 projects amounting to P5.86 billion is in the pipeline,” David said.

The cold chain and grains highway project complements the RO-RO development routes, which are principally funded by DBP.

Of the 20 new or missionary Ro/Ro routes identified by DBP, nine have been made operational through its financing. Most notable of these connections is a new route connecting the town of Pasacao in Camarines Sur to the provinces of Masbate and Romblon. The said route, which will be made operational this month, will connect Romblon to the Pan Philippine Highway.