Assistance for Economic and Social Development (ASENSO) for Local Government Units (LGUs) Financing Program

DBP ASENSO for LGUs Financing Program aims to provide financing assistance to all levels of local government units in the accomplishment of its projects to accelerate infrastructure and socio-economic development consistent with the goals in Philippine Development Plan; and, to contribute in the attainment of Sustainable Development Goals.

Program Objectives

To contribute in the development of smart and sustainable communities by providing financing assistance to at least 10% of LGU population (Province, Cities, Municipalities, Barangays) to boost socioeconomic development.

Eligible Borrowers

All Local Government Units (LGUs), i.e. Province, Cities, Municipalities, and Barangays

Eligible Projects

All infrastructure projects* in line with relevant National Government regulations, policies, and issuances, as follows:

1. 1. Section 17 (b) of RA No. 7160, as further defined per DILG-DBM Joint Memorandum Circular (JMC) No. 2017-1 dated February 22, 2017^**
   2. Disaster Risk Reduction and Management Projects per NDRRMC-DBM-DILG JMC No. 2013-1 dated March 25, 2013^**
   3. Other eligible projects as may be identified and provided for under relevant and related issuances, including any amendments thereof under any of the circulars/policies/regulations stated above. And as long as project is not under the Bank’s negative lists of borrowers and loan purpose.

^{*Not under the Bank’s Negative List of Borrowers and Loan Purposes
**Including amendments/addendum/supplemental guidelines, if any.}

Loan Amount

Up to 100% of total project cost or the winning bid price whichever is lower, provided it is within LGU’s net debt service ceiling and borrowing capacity as certified by DOF-Bureau of Local Government Finance (BLGF).

Interest Rate

1. 1. For Bank Funds – Fixed or variable, based on the Bank’s applicable benchmark rates plus applicable spread.
   2. For Other fund source – Interest rate shall follow the terms and conditions provided for by other fund sources (i.e. ODA, National Government subsidies and/or grants, etc.)

Loan Term

1. 1. For infrastructure and other CAPEX projects – Up to 15 years inclusive of 3 years grace period
   2. For acquisition of machineries and equipment – Up to 10 years inclusive of 1 year grace period

Mode of Payment

Principal and interest payable shall be based on cash flows.

Fees and Other Charges

Front-end fee, extension fee, and commitment fee^** are waived

^{**Except when ODA fund or other fund source is used}

Availability Period

Based on the drawdown period of the project commencing on the date of Notice of approval.

Other Requirements

1. 1. Opening of Bank Account to any DBP branch where loan proceeds shall be credited.
   2. DBP as LGU Depository Bank – Borrower shall make DBP as one of its Depository Bank. For LGUs whose depository bank is not DBP, the borrower shall be given one (1) year from date of signing of loan agreement, to process the opening of account.

Acceptable Collateral

Acceptable collateral to LGUs include, but not limited to, hold-out on deposits/revenues covered by a Hold-out Agreement or Continuing Deed of Assignment.

Documentary Requirements

1. 1. Borrowing resolution by the appropriate Sangguniang Panlalawigan/Panlungsod/Bayan/Barangay
   2. LGU Comprehensive Development Plan (CDP) and Annual Investment Plan (AIP)
   3. LGU background
   4. COA Audited Financial Statements for the last 3 years
   5. List of referred Creditors (if applicable)
   6. Latest Seal of Good Local Governance
   7. Feasibility Study/Project Description
   8. Duly accomplished DBP forms
      1. Customer File Form
      2. Loan Records Form

Project Specific Requirements

1. 1. Infrastructure Projects
      1. Complete set of approved building plans and specifications, detailed bill of quantities of materials, cost estimates, scope of work, details of engineering design and location/vicinity map, survey plans, and construction contract (if applicable); Plans for agricultural structures shall be signed by a licensed agricultural engineer.
      2. Photocopy of owner’s duplicate title certified by the AO except titles mortgaged with other banks; provide English translation if wordings are in Spanish.
      3. Certified true copy of a lot plan with vicinity map duly certified by a Geodetic Engineer.
      4. Progress Billing/Accomplishment Report (for subsequent/staggered mode of release)
      5. If project involves Acquisition of Land
         • Deed of Absolute Sale
         • Certificate of Full Payment (if any)
         • LGU’s Appraisal Committee Appraisal Report
         • Certified true copy of a land title and tax declarations duly verified with the ROD.
         • Deed of Undertaking to transfer ownership of property/ies/land to be acquired under the name of the LGU within one (1) year from date of loan release and submit certified true copy of the title to DBP.
   2. Acquisition of Machineries & Equipment
      1. Equipment Quotations/Specification
      2. Pro-forma invoices/quotations/from suppliers/importers indicating their address, contact numbers, validity of quotation, and/or Offer to Sell/Contract Agreement duly signed by the authorized signatories
   3. For Refinancing or Loan Takeout
      1. Statement of Account from a bank/financing institution
      2. Background/status of the original project financed
      3. Other necessary documents depending on the purpose of the loan to be refinanced.
   4. For Reimbursements
      1. Certificate of Completion
      2. Certificate of Acceptance
      3. Certificate of Occupancy
      4. Bidding Documents
      5. Other necessary documents

For more program information, please contact:

Program Development and Management I Department
Tel. Nos.: (02) 8818-9511 local 2379
E-mail: pdm1@dbp.ph

For loan application, you may contact the lending units near you:

Metro Manila Lending Groups

Raquel C. Atienza
Corporate Banking Group
Tel. Nos.: (02) 8812-6536
E-mail: rcatienza@dbp.ph ; cbg@dbp.ph

Lea Vanessa C. Delos Reyes
Corporate Banking I Department
Tel. Nos.: (02) 8893-8940
E-mail: lvccotaz@dbp.ph; cbd1@dbp.ph

Jennifer L. Benedicto
Corporate Banking II Department
Tel. Nos.: (02) 8892-8369
E-mail: jlbenedicto@dbp.ph; cbd2@dbp.ph

Jose B. Jao III
Financial Institutions Department
Tel. Nos.: (02) 8818-9511 loc. 3317
E-mail: jbjao@dbp.ph; fid@dbp.ph

Gerard Boz C. Tungol
Public Sector Department
Tel. Nos.: (02) 8815-0908
E-mail: gbctungol@dbp.ph; psd@dbp.ph

Jeanne D. Adamos
SME Retail and Mid-Market Lending Group
Tel. Nos.: (02) 8893-1177
E-mail: jdadamos@dbp.ph; smermmlg@dbp.ph

Rosanna M. Mina
Middle Market I Department
Tel. Nos.: (02) 8818-9511 loc. 3322
E-mail: rmmina@dbp.ph; mmd1@dbp.ph

Jeanne D. Adamos
Middle Market II Department
Tel. Nos.: (02) 8818-9511 loc. 3313
E-mail: jdadamos@dbp.ph; mmd2@dbp.ph

Myra G. Almogino-Calara
SME (NCR) Department
Tel. Nos.: (02) 8812-9932
E-mail: mgalmogino@dbp.ph; smed@dbp.ph

Provincial Lending Groups

Kindly proceed to this link.