By: Bingo P. Dejaresco III
MAKATI- The Development Bank of the Philippines (RP’s 8th largest bank in assets) is open to fund the province’s developmental projects – in line with its charter to provide medium to long term capital to productive enterprises.
“This is also in line with the bank’s alignment with the overarching national goals of inclusive growth and poverty alleviation”, DBP President Emmanuel G. Herbosa, told the Chronicle.
Four or Bohol’s developmental targets touching on the power supply, tourism development, help to small and medium businesses and protection of the environment are within the financing radar of the DBP, one of the largest GOCC or Government-Owned or Controlled Corporations.
DBP SUPPORT : P 117.4-BILLION NATIONWIDE
Herbosa, an MBA product of the University of Pennsylvania and De La Salle University (college), mentioned that as of October 2019, DBP support for that industry-types needing assistance (also in Bohol) totaled P117.4-Billion nationwide.
For instance, DBP’s total exposure to electricity, gas, steam and aircon supply is already at P49.03-Billion, 63% of which goes to power generation. For Tourism, its loan portfolio totals P 8.3-Billion.
For Small and Medium businesses, DBP’s support under the SEED Program ( Sustainable Enterprise for Economic Development) already registered P23.14 Billion- assisting 1,534 small firms and individuals.
Under the generic GFP (Green Financing Program), the OBP DBP environment-related lending totaled P36.9-Billion.
POWER: LOW SUPPLY AND HIGH PRICE
For many years, Bohol had suffered power outages due to dependence (70%) on faraway Leyte geothermal and transmitted through unreliable underwater cables-aside from its dwindling capacity to address the burgeoning power demand headed by the newly-minted Panglao International Airport.
Despite the recommendation of the National Grid Corporation to have a Bohol land-based power generated plant, policymakers are still talking about a future Cebu power interconnection which will have the same technical risks and added expense as the Leyte-Bohol model.
DBP’s answer to that is the FUSED (Financing Utilities for Sustainable Energy Development) which is aligned with the Department of Energy’s 2012-2030 Energy Plan.
Eligible for this DBP support are: LGUs, GOCCs, electric cooperatives, private distribution facilities and participating financial institutions.
This is available for (1) energy generation for both renewables and conventional, (2) distribution or transmission and (3) purchase of necessary equipment (software and hardware).
Qualified under Renewables are solar, hydro, wind, biomass, geothermal and other emerging technologies) while Conventionals cover coal, diesel, bunker and other thermal power plants.
Complimentary to this is the DBP ICONS (Infrastructure Contractors Support) Progam- designed to support power and energy project contractors.
TOURISM: BOHOL’S FLAGSHIP INDUSTRY
Tourism is Bohol’s primary source of income and livelihood- gifted as it is with numerous nature’s wonders, an international airport and various modern seaports.
DBP Programs for tourism support are the CRUISE Program (Connecting Urban Intermodal Systems Efficiently) and ICONS, as well.
Eligible are road, water and air transportation infrastructure, rail transport , urban mass transport and tourism facilities.
Road projects are toll and highways, LGU provincial and municipal roads, farm to market roads, terminals and land transport equipment. Water projects are seaport, acquisition of watercraft and ships and road RORO vessels while Air has airports, landside, airside facilities, traffic control and navigation and aircraft equipment.
In mass transport, this can also include even non-motor needs like the construction of bicycle lanes, sidewalks and footbridges. Tourism facilities cover hotels, pension houses, bed and breakfast abodes, homestay and transportation.
It is interesting to note than included in the ICONS program are water supply and sanitation, communications and infrastructure like landfills, solid waste management, waste disposal and recovery projects.
SMALL AND MEDIUM SCALE BUSINESSES
About 90% of the nation’s businesses are composed of small and medium-sized firms and individuals who normally do not have the so-called Three C’s of credit to qualify for borrowing.
DBP has set up for this the SEED Facility ( Sustainable Enterprise of for Economic Development). Hebosa, who spent 6 years (prior to DBP ) as Senior Vice President for Consumer of BPI ( Bank of the Philippine Islands) is very much aware of the nature of this target market. DBP has even further segmentized the market.
The RLM ( Retail Market Lending) is for single proprietorships, partnerships, corporations and cooperatives with assets below P 15-Million. On the other hand, the ME + OBE (Medium Enterprises and Other Business Enterprises) cover both those with assets above P 15- but less than P100M and that have above P3-M but less than P15-M in assets, respectively.
There is even the unique ILAW (Inclusive Lending for Aspiring Women) for MSMEs which are owned or managed by women. Also an OFW-RP or the Overseas Filipino Workers Reintegration Program.
For the very small, there is the DBP Small Business “Puhunan” Program for them to help graduate into the regular and bigger lending programs of the bank.
HELPING THE ENVIRONMENT
A current global concern is Climate Change and the regularity with which it has damaged the environment
DBP has established the GFP (Green Financing Program) to cover air and water pollution control, solid waste and wastewater management, the establishment of green buildings and projects that contribute to a more efficient light and energy system.
Herbosa pledges his full support to the developmental goals of Bohol. The chairman of the DBP is Alberto Romulo.
One of its first forays into “big ticket” developmental lending in Bohol is to Richli Corporation that harnesses river surface water (Cortes) filters and distributes potable water to Tagbilaran city and neighboring towns. (Dejarescobingo@yahoo.com)