State-owned Development Bank of the Philippines (DBP) said Friday it granted a P1.4-billion loan to a renewable energy firm to partially fund the construction of a 8.4-megawatt hydroelectric power plant in Bukidnon in line with the government’s efforts to expand new and sustainable energy sources.
DBP president and chief executive Michael de Jesus said the loan granted to Investco BHPI Inc. was made under the bank’s Financing Utilities for Sustainable Energy Development (FUSED) program which seeks to help increase access to electricity services particularly in the countryside.
“We are honored to be a part of this worthy endeavor. The construction of the 8.4-MW Maladugao River hydroelectric power plant bodes well for the people of Bukidnon and is a tangible manifestation of President Ferdinand Marcos, Jr.’s vision of an energy-sufficient Philippines,” de Jesus said.
DBP is the ninth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; the environment; and social services and community development.
Investco BHPI Inc. is a stock corporation established in 2013 to develop, operate and manage renewable energy. Its proposed 8.4-MW hydroelectric power plant is expected to be on stream by 2025.
De Jesus said that under the FUSED program, DBP approved a total of P81.5-billion in loans to 95 borrowers, with total loan releases of P57.2-billion as of end of September this year.
He said the Maladugao hydroelectric power plant was contracted by First Bukidnon Electric Cooperative to provide an initial supply of 5.5 MW of electricity to the southern part of the province, including Valencia City, which is seen to mitigate the impact of a looming energy shortage by 2028 based on data 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,” de Jesus said.