State-owned Development Bank of the Philippines (DBP) has granted a P2-billion term loan to a renewable energy firm for the development and construction of the 18MW Timbaban hydropower plant in Madalag, Aklan, a top official said.
DBP president and chief executive officer Cecilia C. Borromeo said the assistance to Oriental Energy & Power Generation Corporation (OEPGC) is part of the bank’s efforts to help broaden access to reliable and affordable electricity particularly in the countryside.
“DBP’s loan assistance to OEPGC reflects our continuing commitment to support the efforts of renewable energy firms in their quest to introduce clean energy technology,” Borromeo said.
The Timbaban hydropower project consists of the construction and operation of a run-off river 18MW hydropower plant situated in Brgy Ma. Cristina, Madalag, Aklan. It is the first hydropower project in the country to obtain a Certificate of Commerciality from the Department of Energy and is expected to be completed by April of 2019.
OEPGC was founded in 2008 with the primary purpose of developing power projects specifically hydropower facilities. The company also has four other renewable services projects in Bukidnon and Misamis Oriental.
Borromeo said DBP will continue to support environment-friendly and sustainable renewable energy sources through its Green Financing Program (GFP), a loan program designed to support the strategic thrust of environmental protection and the country’s green growth strategy. As of end June this year, the GFP has an outstanding loan portfolio of P14.11-billion.
“As the country’s premiere development bank, DBP is continuously aligning its loan programs to assist the government in its efforts to develop and advance the optimal use of renewable energy sources pursuant to the Renewable Energy Act of 2008,” Borromeo said.
She said that DBP has lent a total of P13.5-billion to renewable energy projects which represents 38% of the total loan portfolio under its Financing Utilities for Sustainable Development (FUSED) program. “As of the end of June this year, DBP has supported 56 projects under FUSED with a total loan portfolio of P35.6-billion,” Borromeo said.