DBP lines up more financing assistance to transport sector

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) is lining up more financing programs to help the country’s transportation sector recover from the ill-effects of the coronavirus pandemic.

DBP president and chief executive officer Emmanuel Herbosa said the bank is working with the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) in coming up with measures to help the sector.

He said these measures include government subsidies to public utility vehicle (PUV) operators to cover their losses during the temporary ban on PUVs due to movement restrictions to contain the pandemic.

He said the bank’s assistance would be implemented through its Rehabilitation Support on Severe Events (RESPONSE) program, which is designed to extend financing support for the recovery efforts of both public and private firms adversely affected by calamities, such as the ongoing health crisis.

“DBP is one with the DOTr and LTFRB in finding suitable and sustainable solutions to assist the transport sector as it steadily begins to recover from the devastating losses spawned by this pandemic,” Herbosa said.

According to Herbosa, the DBP recognizes the role of the transport sector in the country’s economic recovery as it caters mostly to workers belonging to the micro, small, and medium enterprises (MSMEs), which is considered the backbone of the local economy.

The DBP chief then called on industry stakeholders to collaborate and raise the needed resources to implement innovative approaches that would enable the sector to adapt to new regulations that ensure the health and safety of commuters.

“This an opportune time for the public transport sector to examine its future role in the country’s mass transportation system while optimizing available resources to meet the growing demand for cleaner and more efficient modes of transport,” Herbosa said.

Currently the seventh largest bank in the country in terms of assets, DBP provides credit support to four strategic sectors: infrastructure and logistics, MSMEs, social services and community development, and the environment.

Herbosa said the bank has already provided P19.16 billion in credit assistance and payment deferment under its RESPONSE program, benefitting 606 clients, of which 19 were from the transport sector.

Despite the challenges posed by the coronavirus pandemic, Herbosa said DBP was still able to increase its lending activities in the first half, with P364.4 billion in total loans extended.

This is 15.6 percent higher than the P315.13 billion recorded in the same period last year.

Of this amount, P165.3 billion went to the infrastructure and logistics sector, followed by social services with P77.1 billion, environment projects with P43.6 billion, and MSMEs with P29.6 billion.