DBP grants P700-M loan to Naga City

THE DEVELOPMENT Bank of the Philippines (DBP) granted a P700-million loan to the Naga City government to speed up health infrastructure and socialized housing projects.

DBP President and Chief Executive Officer Emmanuel G. Herbosa said the funds will be used to help build a new three-level hospital and acquire lots for the housing projects.

The loan will also be used for road concrete and urban redevelopment projects.

Mr. Herbosa in a statement said part of the funds will be used to provide home lots for poor families, improve the drainage network, and to rehabilitate roads to ease traffic congestion.

“The proposed New Naga City Hospital, on the other hand, will have a 200-bed capacity, which is in line with the LGU’s (local government unit) efforts to improve the current bed-to-population ratio,” he said.

The target ratio is 1:1,955 from the current 1:2,234.

The fund was granted under the DBP Assistance for Economic and Social Development (ASENSO) for LGUs financing program launched last year to aid them in their recovery from the effects of the pandemic, especially in the countryside.

“DBP supports these developmental initiatives for Naga City as it boosts the city’s income-generating capacity while expanding its role as a center of trade and commerce in the Bicol Region,” Mr. Herbosa said.

DBP’s partnerships with the city include payroll servicing for employee job orders and an electronic payment system for property taxes.

The state-run lender approved P38.28 billion in credit for more than 100 local government units for the first six months of 2021 for infrastructure and socioeconomic development initiatives.

Launched last year, the ASENSO program has helped fund infrastructure, housing, sanitation, telecommunications, and disaster management programs in 51 Luzon LGUs, along with 40 in Mindanao and 19 in the Visayas. — Jenina P. Ibañez