MANILA, Philippines — State-run Development Bank of the Philippines (DBP) has extended a syndicated loan worth P5 billion to the local government of Makati City for the construction of a hospital.
DBP president and CEO Emmanuel Herbosa said the government-owned shouldered half of the loan at P2.5 billion, while state-run Land Bank of the Philippines and Aboitiz-led Union Bank of the Philippines contributed P2 billion and P500 million, respectively.
Herbosa said the loan was arranged by GIV Capital and co-arranged by DBP and Landbank.
On the other hand, UnionBank participated as a co-lender in the financing facility.
“This [hospital] project will help address the growing needs of the country’s health infrastructure landscape. It also responds to the pressing need to develop efficient, effective and responsive health systems that deliver affordable and quality care,” Herbosa said.
Based on the plan, proceeds from the loan will be used to raise a level 2 hospital with 15 floors that can accommodate a capacity of 360 beds and will be equipped with latest equipment and facilities for medical operations, specializing in procedures and treatment of cardiovascular diseases and cancer.
This will help expand the bed-to-population ratio not only of Makati City, but including Metro Manila, as the region’s figure stands at 1:741 at present, below the 1:500 standard set by the World Health Organization (WHO).
The hospital will be built through a joint venture between Makati City and Life Nurture Inc. via the public-private partnership (PPP) scheme.
Herbosa pointed out that PPP projects in general could speed up the construction of any infrastructure given the variety of resources that can be tapped by the proponents.
Herbosa said the pandemic has pushed the public and private sectors to tie up in raising health infrastructure to improve the accessibility of medical services. As for the DBP, he vowed that the bank will sustain its financing to the health sector to fill in the gaps in facilities and services.
Last year, the country’s fifth largest lender approved a total of P39.5 billion worth of loans for infrastructure development and another P38.3 billion in financing for local governments.