Land Bank of the Philippines (Landbank) extended a P700-million loan to the Davao del Sur local government unit (LGU) for its health, tourism, infrastructure, and digitalization projects.
The bank’s new president and CEO, Lynette V. Ortiz said on Tuesday, June 27, that the bank is in talks with Davao and other LGUs or provincial governments for other “meaningful projects to promote economic activities.”
Ortiz said Landbank will continue to support LGUs, local communities and promote government’s inclusive development agenda.
Based on the loan agrement with the Davao LGU, of the total P700 million, about P215 million will be allocated to upgrade the Davao del Sur Provincial Hospital (DSPH), including the acquisition of various medical, dental and hospital laboratory equipment for enhanced delivery of healthcare services, said Landbank.
“The planned expansion and improvements will effectively upgrade the DSPH from a Level II to a Level III Tertiary hospital, with an increased bed capacity of 200 and a three-story building dedicated as a birthing facility,” according to the bank.
Another P40 million will finance the LGU’s healthcare services with the establishment of a Bio-Medical Waste Management System that will comply with the “strictest environmental and bacteriological reduction standards.”
Landbank said P220 million is for recreation and sports such as funding the completion of the Gov. Douglas Ra. Cagas Sports Complex and Business Center in Digos City.
Another P125 million will be allocated to purchase brand-new heavy equipment and service vehicles, to be used in the maintenance and rehabilitation of roads, bridges and other infrastructure projects across the province for improved mobility of people and agricultural produce, said Landbank.
Meanwhile, P100 million of P700 million will finance the LGU’s automation of its transactions and services such as the establishment of a Revenue Administration and Management System with Integrated Financial Management Information System.
“The system is also expected to further advance the local government’s efforts in the delivery of efficient public service while promoting transparency and accountability,” said Landbank.
As of end-April this year, the government bank has released a total P95.12 billion loans to LGUs.
Landbank has P3.1 trillion assets as of the first quarter 2023. It is currently the second largest lender in the country with a deposit base of P2.8 trillion.
The government financial institution posted a net income of P10.8 billion as of end-March but it was lower by 18 percent compared to P13.2 billion in 2022.
The Marcos administration is pushing for the merger of the country’s two biggest state-owned banks, Landbank and the Development Bank of the Philippines (DBP) with the former as surviving bank.
Both banks are also tapped as funders for the Maharlika Investment Fund or MIF. Once the MIF bill is signed into a law, Landbank will be mandated to release P50 billion and DBP P25 billion as seed money to the controversial wealth fund.