DBP recruits SMC for ‘Big Brother, Small Brother’ lending scheme

The San Miguel Corp. (SMC) is the frst mega employer to join the "Big Brother-Small Brother" development strategy of the Development Bank of the Philippines (DBP).

Under the strategy, the SMC Assembler Financing Program aims to generate economic activities in the countryside with the help of the government financial institution.

Planned for implementation under the SPEED program, this undertaking is envisioned to help SMC-accredited assemblers/consolidators and farmer-beneficiaries grow their business by facilitating their access to a range of support services from the DBP.

The bank will extend technical assistance and loans to qualified program beneficiaries for their post-harvest facilities and working capital requirements.

Bank officials also revealed that discussions are undergoing involving several conglomerates and corporates willing to join the development strategy.

Meanwhile, the DBP locked arms with several local government units and acedemic institutions to rebuild the country’s dwindling forest cover.

Last week, the DBP signed several agreements with the Cagayan State University (CSU) and the provincial government of Sarangani for the DBP Forest, a reforestation program that supports and encourages the forestation or reforestation of open and denuded areas through the planting of relatively high value fruit trees and other useful plant species.

The DBP will provide funding support for the forestation of a 151-hectare project site located inside the CSU campus in Sta Maria, Lal-lo, Cagayan. In turn, CSU will undertake site preparation, actual planting, maintenance and monitoring of the DBP Forest project.

Likewise, the bank partnered with the Sarangani provincial government for the development/reforestation and rehabilitation of a 100-hectare upland area located within the area of the Calminda Watershed at Barangay Paraiso, Alabel, Sarangani province. The project is expected to help regain the vegetative cover of the identified upland forest site while sustaining livelihood activities of farmers in the area.

A certificate of recognition was also issued to the Bataan Polytechnic State College (BPSC), the first DBP borrower to contribute to the DBP Forest Fund.

BPSC’s contribution can fund the reforestation of an estimated four hectares of mangrove forest or the cultivation of three to nine hectares of upland forest in Abucay, Bataan.

Also last week, the government financial institution entered into an loan agreement with three bus companies for the acquisition of compressed natural gas (CNG) buses.

These companies are RRCG Transport, HM Transport and Biñan Bus Lines.

The loan assistance is part of the Clean Alternative Fuel Financing Program in support of the Natural Gas Vehicle Program for Public Transport (NGVPPT).

The NGVPPT enhances 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 an alternative transport fuel.

As part of its assistance to the SME sector, DBP will formally turn over funding support to jumpstart the operations of business assistance centers (BACs) in its partner educational institutions under the Sustainable Partnership for Energizing Entrepreneurship Development (SPEED) program.

These educational institutions are:

Aklan State University, Benguet State University, Camarines Sur State Agricultural College, Central Philippine University, Foundation University, Mariano Marcos State University, and Pampanga Agricultural College.

The SPEED program is designed to contribute to the development of micro, small and medium enterprises through a nationwide delivery system that will facilitate the sector’s access to technology, markets, credit and technical assistance through the BACs.

"We continue to leave our footprints in the journey towards securing a better tomorrow for our country," DBP president and chief executive officer Reynaldo David said. "These hallmark programs are just some of our activities in a total package of lending and technical assistance that DBP has developed in pursuit of its mandate to be a catalyst for the country‘s development.

And more programs are in the pipeline to complement and strengthen the development initiatives we have already begun." – Ted Torres