STATE-OWNED Development Bank of the Philippines (DBP) granted a P1.097-billion loan to Cebu-based firm Abejo Waters Corp. (AWC) to fund its water system projects in Cebu and Quezon provinces, the bank’s top official said.

DBP President and Chief Executive Officer Emmanuel G. Herbosa said the proceeds of the loan will be used by the 22-year-old water company to improve the water supply and distribution systems in underserved areas of the two provinces.

“DBP is one with AWC in providing safe and sustainable water to unserved and underserved communities, thereby improving the quality of people’s lives, and promoting growth and development,” Mr. Herbosa was quoted as saying in a statement.

According to its website, AWC is a supplier and distributor of potable water to Metropolitan Cebu Water District (MCWD) with at least 4 million liters per day. It also develops water sources, designs water systems and builds  transmission and distribution lines.

It said the company has at least 15% market share in supplying water across the Metro Cebu area.

“DBP will continue to align its programs for the water sector, as defined under the Philippine Water Supply Sector Roadmap, to help ensure adequate long-term availability and accessibility to potable water nationwide,” DBP’s Mr. Herbosa said.

The state lender’s net profit went down by 27% to P3.24 billion at the end of September last year, from the P4.42 billion logged in the same period of 2019.

The bank attributed the lower net income to increased provisioning for expected credit losses and income taxes. — Beatrice M. Laforga