State-run Development Bank of the Philippines (DBP) has extended a P441-million loan financing for a hydropower project in Leyte as part of the government's efforts to shift to clean energy.
DBP recently approved the P441-million funding support for the development of the Bao River Mini Hydroelectric Power Plant in Ormoc City through the Leyte V Electric Cooperative Inc. (Leyeco V).
The loan is under DBP's Financing Utilities for Sustainable Energy Development (FUSED), the bank's flagship credit facility that prioritizes increased access to electricity services in the countryside.
DBP president and CEO Michael de Jesus said the bank aims to contribute in achieving energy security and broadening access to clean energy sources.
Leyeco V is a non-stock and non-profit cooperative that is registered with the National Electrification Administration.
Studies showed that Leyte and Samar are expected to experience power shortage by as much as 115 megawatts in four years in the absence of new power generation plants.
As such, the new mini hydropower project will help address the increasing demand for electricity in the area and boost the power needs of the northwestern part of Leyte.
The project is expected to benefit 650,000 residents living in 11 municipalities in the province.
DBP has so far approved P77 billion in financing under its FUSED program. Of the total, approximately 30 percent are new and renewable energy projects.
'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,' the bank said.
DBP is the eighth largest bank in the country in terms of assets. It provides credit support to four strategic sectors of the economy namely, infrastructure and logistics, MSME, environment, and social services and community development.