DBP releases P80 million for construction of power stations

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) has extended P80 million worth of loans to an electric cooperative in Camarines Sur for the construction of power stations in Naga City.

The DBP announced the approval of a loan package requested by the Camarines Sur II Electric Cooperative Inc. (CASURECO II) for the completion of two 20-MVA substations in Pili and Barangay San Felipe in Naga City.

According to the bank, the projects will improve CASURECO II’s operational efficiency, reliability and safety in delivering the energy demand of its customers.

Likewise, the power stations will allow CASURECO II to accommodate the load requirements of a proposed industrial park in the area and its new customers. The projects will also improve the cooperative’s power output.

CASURECO II plans to generate 10,000 new connections in the next five years, and putting up the MVA substations forms part of the cooperative’s vision to expand its reach. Founded in 1980, CASURECO II is the largest electric cooperative in Camarines Sur.

With the loan approved, CASURECO II marked the first time in four decades of operations that it obtained funding assistance from a financial institution for its capital expenditure requirements.

The DBP, for its part, has sustained its financing support for local governments and private firms in addressing the infrastructure backlog, especially in the regions.

The DBP released P39.5 billion in loans through the Infrastructure Contractors Support (ICONS) program in the first semester.

The ICONS, launched in 2017, provides construction firms with financing which they can use to finish infrastructure projects assigned to them. The program benefitted a total of 440 borrowers during the period: 151 in Luzon, 145 in Mindanao, 134 in Visayas and 10 in multiple sites.

Under the ICONS, firms licensed by the Philippine Contractors Accreditation Board may avail of loans worth 70 percent of the project cost for awarded deals. On the other hand, they may apply for 60 percent of the collateral value for expansion purposes.

Based on the DBP’s list, eligible projects include social, transport, water supply and sanitation, communications, waste, and power infrastructure.

Last year the DBP widened its loan portfolio by roughly 19 percent to P423.32 billion, of which more than half at P225.9 billion bankrolled infrastructure and logistics.