DBP extends P1.4 billion loan for Mindanao hydropower project

DBP extends P1.4 billion loan for Mindanao hydropower project

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) has extended a P1.4-billion loan financing for a hydropower project in Bukidnon as part of efforts to shift to clean energy in the country.

DBP recently approved the P1.4-billion funding support to Investco BHPI Inc. for the construction of the 8.4-megawatt Maladugao River hydroelectric power plant.

The latest loan is under DBP’s Financing Utilities for Sustainable Energy Development (FUSED), the bank’s flagship credit facility that prioritizes increased access to electricity services in the countryside.

This as DBP aims to continue contributing in achieving energy security and broadening access to clean energy sources.

DBP president and CEO Michael de Jesus said the project bodes well for residents of Bukidnon, as well as a step closer to the administration’s goal of an energy-sufficient Philippines.

The hydroelectric power plant has been contracted by the First Bukidnon Electric Cooperative to provide an initial supply of 5.5 megawatts of electricity to the southern part of Bukidnon.

The project is expected to mitigate the impact of a looming energy shortage in the province by 2028. The power plant is targeted to be on stream by 2025.

“More importantly, this project is seen to stimulate the growth of local industries and small businesses and generate more economic opportunities for the people of Bukidnon,” de Jesus said.

Established in 2013, Investco is a stock corporation mainly involved in the development, operation and management of renewable energy.

DBP has so far approved P81.5 billion in financing to 95 borrowers under its FUSED program, with loan releases reaching P57.2 billion as of end-September.

DBP is the ninth 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.