The Development Bank of the Philippines (DBP) has granted P441 million credit assistance to a mini-hydroelectric plant in Kananga, Ormoc City, Leyte, to broaden access to clean energy sources in the province.

The loan to Leyte V Electric Cooperative, Inc. (LEYECO V) was made under the Bank’s Financing Utilities for Sustainable Energy Development (FUSED), DBP President and Chief Executive Officer Michael O. de Jesus announced Friday, June 2.

LEYECO V is a non-stock, non-profit cooperative located in San Pablo, Ormoc City, Leyte, and registered with the National Electrification Administration (NEA) through Presidential Decree No. 269.

Funding the project is also part of the state-owned bank's support to the national government’s drive to increase the share of renewable energy (RE) in the country’s power generation mix to 35 percent by 2030.

So far, studies have shown that the provinces of Leyte and Samar are anticipated to experience power shortage in 2027 by as much as 115 megawatts (MW) in the absence of new power generation plants.

The development of the 2MW Bao River Mini-Hydroelectric Power Plant is expected to address the increasing demand for electricity in the area.

It should boost the power needs of the northwestern part of Leyte which is comprised of 11 municipalities and one city, with an estimated total population of more 650,000 per latest government data.

“DBP is one with the national government in securing a sustainable energy future for the country,” de Jesus maintained.

“This partnership with LEYECO V is a manifestation of our commitment to support the development of a vibrant and resilient renewable energy sector in the Philippines.”

Overall, DBP has approved nearly P77-billion in loans under its FUSED Program, according to Senior Vice President and Officer-in-Charge of the Development and Resiliency Sector Carolyn I. Olfindo.

Out of the total loan portfolio of FUSED, about 30 percent, or 27 accounts, are considered new and RE projects, signifying DBP’s policy shift towards sustainable and greener sources of power.

“DBP is eager to work with more electric cooperatives, private corporations, and local government units in bankrolling sustainable and environmentally-sound projects that would address power system supply constraints,” Olfindo noted.