The Development Bank of the Philippines (DBP) is extending a P1.1-billion term loan to Liangan Power Corporation (LPC) for the construction of its 11.9 MW hydroelectric power plant that will help improve energy supply in Mindanao, a top official of the state-owned bank said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the DBP-funded power plant further supports the National Government’s continuing efforts to promote reliable and environment-friendly sources of energy, in line with the inclusive growth initiatives in the region.
“We are thrilled to be working with Liangan Power Corporation in this project that will produce a reliable supply of renewable energy at an affordable cost,” Herbosa said. “This should aid in addressing the country’s growing need for sustainable energy supply, particularly in Mindanao.”
DBP is the eighth largest bank in the country with assets totaling P667.91-billion as of end June 2019. The bank provides loans to strategic sectors of the economy such as infrastructure and logistics, small and medium enterprises, social services and community development, and the environment.
The envisioned hydroelectric power plant is the first project to be developed by LPC in the renewable energy sector. It is a run-of-the-river and diversion-type power station to be located in the Liangan River at Barangay Pagayawan, Bacolod, Lanao del Norte. Construction is slated to start in the third quarter of the year with full commercial operations to start in 2021.
LPC has partnered with the Province of Lanao Del Norte under a Public Private Partnership (PPP) via Joint Venture Agreement, the first ever by a provincial government and the private sector for a hydroelectric power project. Its management also aims to begin the development of a bigger hydro project of around 250MW in Mindanao by early next year.