State-owned Development Bank of the Philippines (DBP) has provided
P2.1-billion in funding support for two hydro-energy projects that aim to augment power supply for the Luzon and Visayas Grids, a top official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the loans to Matuno River Development Corporation (MRDC) and Taft Hydroenergy Corporation (THEC), both majority-owned by Magis Energy Holdings Corporation (MEHC), were extended under the Financing Utilities for Sustainable Energy Development (FUSED).
“With these projects, we hope to accelerate the use of renewable power resources and increase the country’s green energy mix,’’ Herbosa said. “Green financing can ensure that sustainable socioeconomic development can be achieved while protecting the environment.”
DBP is the fifth 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; environment; social services and community development.
Herbosa said proceeds of the
P1.1-billion loan to MRDC were used for the construction of an eight-megawatt (MW) hydroenergy power plant located in Brgy. San Rafael, Bambang, Nueva Vizcaya, which is expected to generate an additional 42 gigawatt hours (GWh) for the Luzon Grid via the National Grid Corporation of the Philippines (NGCP).
He said the
P1-billion loan to THEC was utilized to build a 16-MW hydropower project in Tubig River, Brgy. San Rafael, Taft, Eastern Samar, which would supply 70GWh to the Visayas Grid to help address the inadequate supply of stable and affordable electricity in the region particularly in Samar Island and Leyte Province.
“Despite the constraints posed by the pandemic, commissioning of both projects is already in the planning stage, and commercial operations will soon commence,” Herbosa said.
As of end-October 2021, DBP has released a total of
P41.57-billion in credit assistance under its FUSED program for energy related projects across various regions in the country.