State-owned Development Bank of the Philippines (DBP) has granted a new P311.8-million term loan to the local government unit (LGU) of Tuguegarao City to bankroll public infrastructure and agriculture productivity enhancement projects in the area, a top official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the loan was extended under the Assistance for Economic and Social Development for LGUs Financing Program – Bayanihan Interest Subsidy Fund and would be used to finance the construction of a core shelter housing project, drainage systems, an evacuation center, road concreting as well as the acquisition of agricultural equipment, among others.
“Through this partnership, DBP is confidently making a leap forward to support more inclusive growth initiatives in LGU Tuguegarao City,” Herbosa said. “These worthy initiatives would be pursued under a framework of inclusivity – where people are mainstreamed into the growth process both as beneficiaries and contributors.”
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.
Tuguegarao is a third-class component city and the capital of Cagayan Province. The city is recognized as a regional primary growth center and serves as a springboard for economic activities within the Cagayan Valley, and in the bordering municipalities of the Ilocos Region and the Cordillera Administrative Region.
Herbosa said DBP has been a development partner of LGU Tuguegarao City since 2008 and has granted two-term loan facilities amounting to P120-million in 2017 and P600-million in 2018, which were used for projects on education, public works, and solid waste management.
He said the local government is also a valued client of DBP’s Cash Management Solutions including POS terminals, prepaid cards, DBP ATM payroll servicing, deposit pick-up services, among others.
“The bank will continue to support growth initiatives that propel greater impact and benefit to our fellow Filipinos, including those that promote resiliency in socio-economic sectors,” Herbosa said.