Government-owned Development Bank of the Philippines (DBP) has released a P1.4-billion loan to a Mindanao renewable energy (RE) company, INVESTCO BHPI Inc., for the construction of an 8.4 megawatt (MW) hydroelectric power plant in Maladugao River in Bukidnon.
DBP President and CEO Michael O. de Jesus said Friday, Nov. 24, that the construction of the hydroelectric power plant “bodes well for the people of Bukidnon” and that it is a “worthy endeavor” consistent with the administration’s vision of an “energy-sufficient Philippines.”
The proposed RE project in the Maladugao River is expected to be on stream by 2025, said DBP.
De Jesus said the P1.4 billion loan is a partial funding for the Bukidnon RE plant and will help “expand new and sustainable energy sources” in Mindanao.
INVESTCO BHPI borrowed from the government bank under its Financing Utilities for Sustainable Energy Development (FUSED) Program. The program is aimed at increasing electricity services in the countryside.
Created in 2013, INVESTCO BHPI is a stock corporation engaged in the RE development, operation and management.
“We are honored to be a part of this worthy endeavor,” said de Jesus.
DBP has approved a total P81.5 billion of loans under the FUSED program, extended to 95 borrowers. Of this amount, P57.2 billion has been released as of end-September this year.
De Jesus said the Maladugao River hydroelectric power plant, contracted by the First Bukidnon Electric Cooperative, will provide an initial supply of 5.5MW of electricity to the southern part of Bukidnon, including Valencia City.
He said the RE project "is seen to mitigate the impact of a looming energy shortage in the province by 2028" based on data that he quoted 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,” added de Jesus.
DBP, the country’s 9th largest bank in assets size, is a key government strategic financier, especially to critical economic sectors such as infrastructure and logistics, micro, small and medium enterprises, social services, the environment, and community development.
In the first six months of 2023, the bank reported profits of P4.42 billion, up 60 percent compared to same period last year of P2.76 billion.
DBP is aiming for a full year net income of P5.2 billion versus P5.6 billion in 2022.