State-owned Development Bank of the Philippines (DBP) has extended a P1.4-billion loan to a top renewable energy firm as partial funding to construct a 8.4-megawatt hydroelectric power plant in Bukidnon in line with the National Government’s efforts to expand new and sustainable energy sources, a top official said.
DBP President and Chief Executive Officer Michael O. de Jesus said the loan granted to INVESTCO BHPI, Inc. was made under the Bank’s Financing Utilities for Sustainable Energy Development (FUSED) Program, which seeks to help increase access to electricity services particularly in the countryside.
“We are honored to be a part of this worthy endeavor,” de Jesus said. “The construction of the 8.4MW Maladugao River hydroelectric power plant bodes well for the people of Bukidnon and is a tangible manifestation of President Ferdinand R. Marcos, Jr.’s vision of an energy-sufficient Philippines.”
DBP is the ninth 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.
INVESTCO BHPI, Inc. is a stock corporation established in 2013 and is mainly involved in the development, operation and management of renewable energy with its proposed 8.4MW Maladugao River hydroelectric power plant expected to be on stream by 2025.
De Jesus said that under the FUSED program, DBP has approved a total of P81.5-billion in loans to 95 borrowers while total loan releases have reached P57.2-billion as of end of September this year.
He said the 8.4MW Maladugao River hydroelectric power plant has been contracted by the First Bukidnon Electric Cooperative to provide an initial supply of 5.5MW of electricity to the southern part of Bukidnon, including Valencia City, which is seen to mitigate the impact of a looming energy shortage in the province by 2028 based on data from the Department of Energy.
“More importantly, this project is seen to stimulate the growth of local industries and small businesses and generate more economic opportunities for the people of Bukidnon,” de Jesus said.