MANILA, Philippines — The Development Bank of the Philippines (DBP) will fund some P7 billion worth of aquaculture projects through the local unit of a Thai agricultural company.
The state-run DBP said it inked an agreement with Charoen Pokphand Foods Philippines Corp (CPFPC)., a subsidiary of Bangkok-based Charoen Pokphand Group, for credit assistance on aquaculture projects.
The DBP and CPFPC already have an existing partnership after the two parties previously signed an agreement in July last year for poultry production.
DBP president and CEO Michael de Jesus said the bank would provide financing for working capital requirements, fixed assets acquisition, installation of other support facilities, pond development or improvement, and establishment of post-harvest facilities.
Pipeline projects to be financed under the agreement is estimated at P7 billion for this year.
“This partnership is in support of the Department of Agriculture’s commitment to intensify the fishery sector by increasing the local shrimp production to 276,320 tons from 2023 to 2027,” de Jesus said.
CPFP operates vertically integrated agro-industrial and food businesses in 17 countries.
The local unit also engaged in the production, processing, and marketing of poultry products in partnership with integrated partners. Its Thai parent firm is one of the largest producers of poultry and pork globally.
De Jesus emphasized that DBP aims to boost the government’s efforts in the local aquaculture industry through its Aquaculture Value Chain Financing program, its latest funding facility.
This is also in line with the goal of President Marcos to improve agricultural productivity and ramp up modernization efforts of the sector.
The projects with CPFPC will cover a range of aquaculture-related activities supporting small and micro enterprises and cooperatives with a minimum funding of P5 million, but not exceeding P15 million or up to 90 percent of the total project cost.
It also covers medium-to-large enterprises with minimum funding of P15 million or up to 70 percent of the total project cost.
DBP is the eighth largest bank in the country in terms of assets. It provides credit support to four strategic sectors of the economy namely, infrastructure and logistics, MSME, environment, and social services and community development.