State-owned Development Bank of the Philippines (DBP) has granted a P254-million credit assistance to a renewable energy firm, as the Bank ramps up efforts to spur additional investments in the energy sector amidst rising demand, a top official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the loan to Upgrade Energy Philippines, Inc. (UEP) which was made under its Energy Efficiency Savings (E2SAVE) Program is a testament to DBP’s unwavering support to the National Government’s call for developing the country’s renewable energy resources.
“DBP remains to be at the forefront of funding initiatives aimed at protecting the planet. We are looking to work with more development partners towards ensuring a more sustainable future for the next generations,” Herbosa said.
DBP is the eighth 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.
UEP is an engineering, procurement and construction contractor offering renewable energy and energy efficiency technology solutions to various industries in the country to help them reduce their energy consumption.
DBP Senior Vice President and Head of Lending Program and Management Group Carolyn I. Olfindo said the credit line would be used to partially finance the capital expenditure, construction, and installation of a 1,500kW rooftop solar power plant project which will be under a Photovoltaic Installation Lease Agreement with the UEP.
She said the arrangement with UEP would be maximized under the DBP E2SAVE Program, which is designed to help public and private institutions improve their productivity by harnessing available new technologies in the market for their energy efficiency and renewable energy projects while allowing loan repayment based on electricity savings to make investment affordable to end-users.
“As of September 2022, DBP has approved 10 accounts under the E2SAVE program with a total loan amount of P947-million,” Olfindo said. “DBP will continue to actively seek more partners for the program to further promote the development of energy efficiency projects in the country.”