MANILA, Philippines — State-run Development Bank of the Philippines (DBP) has extended a P2-billion loan financing to the local government of Palawan for vital public infrastructure projects including the upgrade of road network.
The latest loan is under DBP’s Assistance for Economic and Social Development (ASENSO) for LGUs Financing Program, the bank’s credit facility that aims to finance LGU projects meant to accelerate infrastructure and socio-economic development.
DBP president and CEO Michael de Jesus said the funding would support Palawan in its pursuit of sustainable socio-economic growth through infrastructure development and climate change adaptation.
The bulk of the loan amount at P1.4 billion will be allotted for the upgrade of nearly 76 kilometers of gravel roads into two-lane concrete roads.
The project is expected to better connect farmers and fishermen to the markets and speed up the transport of goods and people across the province.
The rest of the fund will be used for the construction and rehabilitation of various flood control projects to mitigate the adverse impact of climate change on communities.
Palawan is the second largest local economy in MIMAROPA.
Under the ASENSO program, DBP has so far approved P104.41 billion in financing to 372 LGU-borrowers, with loan releases reaching P29.41 billion as of end-November last year.
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.
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The article was originally published in PhilStar Global and written by Louise Maureen Simeon.