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DBP-Mindanao Development Assistance Financing Program (DBP-MinDA)

The DBP-Mindanao Development Assistance Financing Program (DBP-MinDA) aims to contribute in addressing low agricultural productivity and lack of access to water supply in consonance with efforts to further attain peace, prosperity and poverty reduction in geographically-isolated and disadvantaged Mindanao areas through the provision of potable water supply and irrigation.

Eligible Borrowers
Local Government Units (LGUs) in geographically-isolated and disadvantaged Mindanao areas with projects catering to waterless communities and far-flung Indigenous People’s communities, except barangays

Eligible Projects
Capital expenditures in support of water supply, sanitation and irrigation projects such as:

1. Construction/rehabilitation/maintenance of infrastructure facilities
2. Acquisition of machineries and equipment

In support of the Memorandum of Understanding signed by DBP, the Mindanao Development Authority (MinDA), and the Department of the Interior and Local Government (DILG), the following construction projects for infrastructure are eligible for financing:

• Package 1 – Water Supply and Sanitation Facilities
• Package 2 – Irrigation System
• Package 3 – Combination of Water Supply, Sanitation and Irrigation Facilities

Loan Features

1. Loan Amount

• Up to 100% of estimated total project cost or the winning bid price (whichever is lower), provided it is within the Estimated Calculated Cost Range (ECCR) or Estimated Acquisition Cost Range (EACR), as applicable
• Not to exceed the LGU’s net debt service ceiling and borrowing capacity as certified by the DOF-Bureau of Local Government Finance (BLGF)

2. Repayment Terms

• Based on cash flow, loan tenor is up to fifteen (15) years inclusive of a maximum of two (2) years grace period on principal, payable in equal principal installments

3. Co-Financing Modality

• The loan requirement of the LGUs may be co-financed by DILG from its own funds, and by DBP through the DBP MinDA program

Program Requirements

1. MinDA Endorsement Letter, including the LGU’s Letter of Intent to avail of financing under the DBP MinDA program

2. Three (3) year-Commission on Audit (COA) Annual Audit Report (AAR) and/or submission of unaudited Financial Statements stamped received by COA

3. Latest Comprehensive Development Plan and Annual Investment Plan or Brief write-up about the LGU which covers areas such as, but not limited to, the following:

• LGU history/ geographical location/classification
• Socio-economic profile
• Disaster Risk Management System including the LGU’s well-defined policies and guidelines in addressing natural disasters
• Project description including total project cost

4. Certification of existing loans duly certified by the City/Municipal Treasurer

5. Statement IRA for the last three (3) years, duly certified by the Local Chief Executive or City/Municipal Treasurer

6. Borrowing Resolution authorizing the Local Chief Executive to negotiate and contract loan with DBP

7. Authority to provide and obtain credit information to/from credit bureaus and other banks/creditors

8. Seal of Good Financial Housekeeping (if available)

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For more program information, please contact:

Program Development and Management I Department
Tel. Nos.: (02) 8818-9511 local 2340