State-owned Development Bank of the Philippines (DBP) has approved P660-million in funding support for the development of the 4.6MW Dupinga Mini Hydropower project in Gabaldon, Nueva Ecija in line with its thrust to support new and renewable energy sources, a top official said.
“The funding support for the Dupinga Project is yet another contribution by the DBP in helping achieve the government’s goal of 30% renewable energy share in the country’s total energy mix by 2030,” DBP President and Chief Executive Officer Emmanuel G. Herbosa said.
The loan extended to Dupinga Mini Hydro Corporation (DMHC) is under DBP’s Financing Utilities for Sustainable Energy Development (FUSED), which aims to contribute to the increased access to electricity services through financing of utility-scale energy generation projects.
“The Dupinga Project is located within the ancestral domain of the Katutubong Dumagat of Central Luzon and the Sierra Madre mountain range. Ensuring the completion of this project through our funding support also assures that the welfare of our indigenous people and their community as well as the Sierra Madre are protected and remains sustainable,” Mr. Herbosa highlighted.
DBP is the sixth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; the environment; and social services and community development.
DBP is expected to release to DMHC the first tranche from the approved loan within July 2022 to fully mobilize construction activities and target completion by early 2024. DMHC is a partnership between Alternergy Holdings Corporation, a pioneering renewable energy company led by former energy secretary Vicente S. Pérez Jr., and Markham Resources Corporation, an investment company led by Francisco Tiu Laurel of the Frabelle Group.
The Dupinga Project is a small-scale run-of-river hydropower project that will harness water from the Dupinga River system and convert it clean, renewable electricity supply to Nueva Ecija II – Area 2 Electric Cooperative, Inc. (NEECO 2- Area 2). It is expected to spur economic activities and improve the welfare of the community through additional income from royalties, taxes and government share for every kilowatt of generated output. The Dupinga Project’s Corporate Social Responsibility (CSR) program is focused on assisting the Katutubong Dumagats.