Government-controlled Development Bank of the Philippines (DBP) has approved a P2-billion loan to the Palawan local government unit (LGU) to fund its public infrastructure development including climate change-related projects.
DBP President and CEO Michael O. de Jesus said Friday, Jan. 26, that the loan will be disbursed under its Assistance for Economic and Social Development (ASENSO) for LGUs Financing Program, a flagship lending facility for LGUs to help Palawan’s road network and disaster risk reduction capabilities.
“This latest initiative with the Provincial Government of Palawan is a clear manifestation of DBP’s steadfast commitment to support local government units in their pursuit of sustainable socio-economic growth through infrastructure development and climate change adaptation,” said de Jesus.
De Jesus added that of the P2 billion loan, about P1.4-billion will be used to upgrade a 76-kilometer gravel roads into a two-lane concrete roads to “better connect farmers and fishermen to the markets and speed up the transport of goods and people across the province.”
The DBP financing will also construct and rehabilitate various flood control projects to cushion the climate change impact on communities such as those in the northern and southern portions of Palawan.
“DBP is hopeful that this partnership will pave the way for more meaningful engagements not just with the Palawan provincial government but also for the rest of MIMAROPA under the auspices of regional development plan 2023 to 2028,” said de Jesus.
Palawan is mostly an archipelagic province and the second largest contributor to the economy of Region 4-B or MIMAROPA. It has 23 municipalities, 467 barangays and population of 939,594 as of latest government data.
Meanwhile, as of end-November 2023, the bank’s ASENSO Program had total loan approvals of P104.41-billion, benefitting 372 LGU-borrowers with total loan releases of P29.41-billion.
With P962.886 billion worth of assets, DBP is the country’s 9th biggest commercial bank and the second largest as a government bank after Land Bank of the Philippines.
Its mandate allows it to provide strategic financing support to critical economic sectors such as infrastructure and logistics, micro, small and medium enterprises, social services, and the environment.