MANILA, Philippines — State-run Development Bank of the Philippines (DBP) has extended a P1.3-billion omnibus loan to the provincial government of Nueva Ecija to help facilitate the efficient transportation of goods and boost trade in the province.
DBP president and chief executive officer Cecilia Borromeo said bulk or P1.2 billion of the total loan amount would be used for the construction of a two-lane road, which will link the towns of Peñaranda, San Isidro and Cabiao, as well as the city of Gapan in the southern part of the province.
“This major infrastructure project will provide an alternative route to motorists who are coming from nearby areas such as Bulacan and Metro Manila, thereby reducing travel time and facilitating faster movement of goods and commodities,” Borromeo said.
She said the remaining balance of the loan was earmarked for other development projects in the province, including the purchase of medical equipment.
According to Borromeo, this omnibus loan facility is the latest assistance granted by DBP to Nueva Ecija. The bank had assisted the provincial government in other projects, such as the construction of school buildings and a rice drying, treatment and storage center, and the acquisition of an onion storage facility.
DBP Chairman Alberto Romulo said the project is in line with the bank’s efforts to build infrastructure, which would help maximize the growth potential of Central Luzon and aid the government’s move to decongest Metro Manila.
The DBP earlier committed to increase its funding support to far-flung areas in the country.
It had also transitioned into the infrastructure bank of the Philippines pursuant to the Duterte administration’s thrust to address the country’s infrastructure gap and to usher the golden age of infrastructure.
In line with this, the DBM boosted its lending activities in the first half, with a total loan portfolio of P250.59 billion.
About P82.88 billion of this amount was channeled to the infrastructure and logistics sector, while P72.1 billion worth of loans was granted to state corporations, local government units and other private businesses.
The agriculture sector received P40 billion in loans, while projects in healthcare, education and shelter were given P38.58 billion. Loans for environment projects also reached P15.94 billion.
DBP’s lending activities helped boost the bank’s net income by 10.7 percent in the first half to P12.18 billion.
It also remained the eighth largest bank in the Philippines, with total assets reaching P617.87 billion as of the end of June.