DBP, DOE sign accord

The Development Bank of the Philippines and the Department of Energy (DOE) signed a memorandum of agreement (MOA) on the compressed natural gas (CNG) program for public transportation in support of the national government’s natural gas vehicle program for public transport (NGVPPT).

The NGVPPT is envisioned to enhance the energy supply security in the transport sector through fuel diversification using indigenous natural gas and to address environmental concerns by promoting the use of natural gas as clean alternative fuel for transport.

The DBP has since established the Clean Alternative Transport Fuel Financing Program (CATFFP) to provide financial assistance to eligible investment enterprises in the transport sector, fuel supply infrastructure, equipment supply, and support industries.

Under the accord, the energy department will endorse accredited applicants under the NGVPPT for financing.

It will also assist the DBP in the evaluation of the applicant’s business proposal and compliance to documentary requirements.

The DOE will also develop a strategic CNG pricing mechanism and ensure that there will be enough supply of fuel for the NGVs or natural gas vehicles industry.

The DBP will identify potential projects for funding under its CATFFP, extend credit to the qualified projects and closely monitor and supervise these approved projects. It will also provide technical assistance and conduct capacity development, including information and public awareness.