The Development Bank of the Philippines (DBP) has launched a new financing facility aimed at assisting private firms and public entities including local government units (LGUs) and water districts in the development of water treatment and sanitation facilities to comply with existing environmental regulations, a senior official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said DBP’s Lending Initiatives for Sanitation (LINIS) program is the bank’s contribution to the government’s efforts to achieve universal access to sanitation by increasing the compliance of establishments with relevant laws such as Republic Act No. 9275 or the Clean Water Act of 2004 and Presidential Directive No. 2018-0081.
“The DBP LINIS program is intended to help private companies, water districts, cooperatives, and LGUs comply with environmental rules particularly in the establishment of waste water treatment facilities,” Herbosa said. “We are one with government in ensuring water quality in all parts of the country.”
DBP is the eighth largest bank in the country and provides loans to strategic sectors of the economy including the environment. The bank financed several water sanitation projects including the Boracay waste water treatment facility of Boracay Island Water Company, Inc., as well as the Paranaque sewerage treatment plant (STP) of Maynilad Water Services, Inc.
Under the program, eligible entities can borrow from DBP to finance septage and sewerage system projects as well as waste water collection, transport, treatment and disposal of target borrowers such as LGUs, water districts, hospitals, service providers, participating financial institutions, cooperatives, and associations.
Herbosa said the program features a cost sharing scheme for septage and sewerage projects of LGUs under the National Sewerage and Septage Management Program (NSSMP), where DBP could finance up to 100% of the validated total project cost of the LGU counterpart, subject to certain conditionalities.
He said target beneficiaries for the cost sharing scheme are the 17 highly urbanized cities (HUCs) outside Metro Manila, all non-HUCs, and first-class municipalities.
“For LGUs and water district projects not covered by the NSSMP, the maximum loan amount shall be up to 100% of the validated total project cost,” Herbosa said.
Herbosa said DBP is calling on all of its LGU partners to invest in septage and sewerage projects to bring the project to full fruition.
For more details about the DBP LINIS program, interested entities may visit the DBP website at www.dbp.ph or inquire with the nearest DBP lending center in their area.