DBP approves P4-B loan for Cabuyao LGU
THE DEVELOPMENT Bank of the Philippines (DBP) has approved a P4-billion loan for the local government unit (LGU) of Cabuyao, Laguna to help fund key public infrastructure projects.
“DBP’s latest partnership with the city government of Cabuyao is aligned with the 10-point agenda of President Ferdinand R. Marcos, Jr., particularly the promotion of transparent and efficient governance, and advancement of healthcare and education in the country, ” DBP President and Chief Executive Officer Michael O. de Jesus said in a statement on Thursday.
Broken down, P2.665 billion of the total loan amount will be allocated for the construction of a new three-story city hall, college school buildings, a sports arena, a public market, and establishment of the Digital Education and Free WiFi Program for the Pamantasan ng Cabuyao.
Meanwhile, about P1.233 billion will fund the construction and rehabilitation of various roads, road fences, bridges, and completion of flood control projects.
Lastly, the remaining P102 million will be used for the procurement and installation of street lighting in barangays.
Cabuyao City is located about 43 kilometers southeast of Metro Manila and has an estimated population of about 355,330 residents, DBP said.
Mr. De Jesus said the loan was approved under the state-run bank’s Assistance for Economic and Social Development (ASENSO) for Local Government Units Financing Program.
It was earmarked to enhance vital services in the areas of education, public health, access and mobility, disaster-mitigation, and public security, among others.
DBP has approved P110 billion in loans to 381 local government units under the ASENSO program as of end-February.
This is in addition to P33.7 billion in total disbursements and P32.5 billion worth of outstanding principal balance.
“DBP is looking to partner with more local government units for the financing of their priority projects under the ASENSO program, with the aim of helping fast-track the implementation of key initiatives designed to accelerate and sustain socioeconomic development in their respective communities,” Mr. De Jesus said.
As of end-2023, DBP was the 10th largest bank in the country in terms of assets with P983.65 billion, latest data from the Bangko Sentral ng Pilipinas showed.
The state-run bank provides credit support to four priority sectors of the economy, namely infrastructure and logistics, micro, small and medium enterprises, the environment, and social services and community development.
DBP’s net profit rose by 60% year on year to P4.42 billion in the first half of 2023 from P2.76 billion a year prior, driven by gains from foreign exchange and the sale of properties. — A.M.C. Sy
