DBP, Manila gov't ink P10-B loan deal for infra projects

State-run lender Development Bank of the Philippines and the city government of Manila on Friday inked a P10-billion loan agreement to fund the city’s various public infrastructure projects.

With a 15-year term, the loan deal will be used to bankroll the construction of school buildings in three districts and the establishment of a landmark housing project benefitting informal settlers and urban poor communities in Manila.

In statement, DBP president and chief executive officer Emmanuel Herbosa said the the loan agreement was signed by Manila Mayor Francisco “Isko Moreno” Domagoso and himself.

“DBP is honored to be a part of the ardent efforts of the City Government of Manila to scale up and ramp up social services to its residents,” Herbosa said.

Under the agreement, the loan proceeds would be utilized for the construction of three 10-storey “high-impact” buildings for Rosauro Almario Elementary School in District 1, Dr. Albert Elementary School in District 4, and Manila Science High School in District 5.

It would also bankroll three in-city vertical housing buildings to be constructed along San Sebastian, San Lazaro, and Pedro Gil Streets. 

Herbosa said the DBP’s latest credit assistance comes on the heels of the P5-billion loan granted to the city to finance several social development projects such as the 10-storey Bagong Ospital ng Maynila, in-city vertical housing projects in Tondo and Binondo, and the re-development of Manila Zoo.

Manila is the country’s capital and is also considered a center of trade and finance as most of the country’s national imports and exports pass through the city’s ports.

It ranks third on the list of richest cities in the country with total assets of P64.8-billion as per latest Commission on Audit report. 

Herbosa said the DBP is ramping up support for local governments under its flagship Assistance for Economic and Social Development program, which supports the local government units’ initiatives on market infrastructure development and improvement, social welfare, health care, and other public infrastructure projects that spur local economic activity. 

The DBP is the sixth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; the environment; and social services and community development.  —Ted Cordero/LBG, GMA News