DEVELOPMENT BANK of the Philippines (DBP) extended P2.1 billion in loans for two hydro-energy projects to support power supply for the Luzon and Visayas grids.

The state-owned bank granted the loans to Matuno River Development Corp. and Taft Hydroenergy Corp., both majority-owned by Magis Energy Holdings Corp.

While the P1.1-billion loan for Matuno River Development Corp. was used to build an eight-megawatt hydro energy power plant in Nueva Vizcaya, another P1 billion lent to the Taft Hydroenergy Corp. was used for a hydropower project in Eastern Samar.

“We hope to accelerate the use of renewable power resources and increase the country’s green energy mix,” DBP President and Chief Executive Officer Emmanuel G. Herbosa was quoted as saying in a statement on Thursday.

“Green financing can ensure that sustainable socioeconomic development can be achieved while protecting the environment,” Mr. Herbosa added.

The Nueva Vizcaya plant is expected to generate an additional 42-gigawatt hours (GWh) for the Luzon grid via the National Grid Corp. of the Philippines.

The Eastern Samar project will supply 70 GWh to the Visayas grid.

“(The project will) help address the inadequate supply of stable and affordable electricity in the region particularly in Samar Island and Leyte Province,” DBP said.

Mr. Herbosa said commercial operations will start soon.

The projects are under DBP’s Financing Utilities for Sustainable Energy Development program, which aims to fund electricity projects.

The state-owned lender has released P41.57 billion in credit under this program as of October 2021.

DBP provides credit support for infrastructure and logistics, micro-, small-, and medium-sized enterprises, environment, and social services and community development projects. — J.P. Ibañez