State-owned Development Bank of the Philippines (DBP) has granted a P441-million credit assistance for the development of a mini-hydroelectric plant in Kananga, Ormoc City, Leyte, to achieve energy security and broaden access to clean energy sources in the province, a top official said.
DBP President and Chief Executive Officer Michael O. de Jesus said the credit assistance to Leyte V Electric Cooperative, Inc. (LEYECO V) was made under the Bank’s Financing Utilities for Sustainable Energy Development (FUSED) and is part of its continuing support to the national government’s drive to increase to 35% the share of renewable energy (RE) in the country’s power generation mix by 2030.
“DBP is one with the national government in fortifying its efforts to secure a sustainable energy future for the country,” de Jesus said. “This partnership with LEYECO V is a clear manifestation of our commitment to support the development of a vibrant and resilient renewable energy sector in the Philippines.”
DBP is the eighth largest bank in the country in terms of assets and remains a relevant and reliable partner of the national government in serving the financing needs of strategic and critical economic sectors, particularly infrastructure and logistics, micro, small and medium enterprises, social services, and the environment.
LEYECO V is a non-stock, non-profit cooperative located in San Pablo, Ormoc City, Leyte, and registered with the National Electrification Administration (NEA) through Presidential Decree No. 269.
De Jesus said that studies have shown that the provinces of Leyte and Samar are anticipated to experience power shortage in 2027 by as much as 115 megawatts (MW) in the absence of new power generation plants.
He said that the development of the 2MW Bao River Mini-Hydroelectric Power Plant is expected to address the increasing demand for electricity in the area and boost the power needs of the northwestern part of Leyte which is comprised of 11 municipalities and one city, with an estimated total population of more 650,000 per latest government data.
“With this existing partnership and future partnerships ahead, we hope that together, DBP and LEYECO V can continue to be instruments of change that will help build a more just and sustainable future for all,” de Jesus said.
DBP Senior Vice President and Officer-in-Charge of the Development and Resiliency Sector Carolyn I. Olfindo said DBP has approved nearly P77-billion in loans under its FUSED Program.
She said out of the total loan portfolio of FUSED, about 30% or 27 accounts are considered new and RE projects, signifying DBP’s policy shift towards sustainable and greener sources of power.
“DBP is eager to work with more electric cooperatives, private corporations, and local government units in bankrolling sustainable and environmentally-sound projects that would address power system supply constraints,” Olfindo said.
