DBP launches P10-B fund for public education

MANILA, Philippines - State-run Development Bank of the Philippines (DBP) is boosting its support to public education with the launch of the P10-billion Financing for Public Basic Education (FPBE) facility that aims to improve the delivery of educational services in the country, especially to low-income communities.

DBP president and chief executive officer Francisco F. del Rosario Jr. said the FPBE would also support the National Government’s efforts to achieve universal primary education.

“We are optimistic that with the FPBE, we can catalyze the improvement of the public school system by encouraging local government units to invest in facilities that will improve the learning environment of public schools such as classrooms, libraries, laboratories, toilets, and sufficient textbooks and teaching aids,” he added.

Del Rosario said the FPBE would give priority to fourth- to sixth-class municipalities and fourth- to fifth-class provinces.

 Local government units, with authorization from their local school boards and municipal/provincial councils, may avail of loans under the facility for projects such as land acquisition, infrastructure, furniture and equipment, supplies and materials, and special projects.

Maximum amount of loans shall be up to 90 percent of total project cost or winning bid price, whichever is lower. Repayment term is up to 10 years inclusive of up to two years grace period on principal payments.

Earlier, the DBP also reinforced its ACPC-DBP Cooperative Agricultural Lending Program Facility (CALP) to help fund stable cooperative banks and cooperatives extending agricultural loans to small farmers and fisherfolk.

The facility will provide agricultural microfinance loans for the production of crops, livestock, poultry and fisheries. It will also provide financing of on-farm/off-farm activities of agricultural households using the household cash flow lending approach.