State-owned Development Bank of the Philippines (DBP) has recently granted a PHP4-billion credit facility to the city government of Cabuyao in Laguna to support critical public infrastructure projects.
This substantial financial boost is poised to significantly enhance the city’s infrastructure, benefitting a wide range of sectors that are vital to its growth and development.
IMAGE CREDIT: https://www.dbp.ph/
In a press release, DBP President and Chief Executive Officer Michael O. de Jesus explained that the loan, approved under the bank’s Assistance for Economic and Social Development (ASENSO) for Local Government Units Financing Program, aims to enhance essential services in the areas of education, public health, access and mobility, disaster mitigation, and public security. This multifaceted approach ensures that the city’s development is comprehensive and inclusive, touching on key aspects of urban living.
“DBP’s partnership with the city government of Cabuyao aligns with President Ferdinand R. Marcos, Jr.’s 10-point agenda, promoting transparent and efficient governance, and advancing healthcare and education in the country,” de Jesus stated.
This alignment underscores the strategic importance of the loan in supporting national development goals, and fostering an environment of progress and prosperity.
DBP: Channelling resources more effectively
As the tenth largest bank in the Philippines by assets, DBP focuses on four priority sectors: infrastructure and logistics; micro, small, and medium enterprises; the environment; and social services and community development. This strategic focus allows DBP to channel resources effectively, supporting projects that yield significant socio-economic benefits.
Cabuyao City, located about 43 kilometers southeast of Metro Manila, has an estimated population of approximately 355,330 residents. It ranks as the 7th largest economy in Laguna, bolstered by a thriving local economy, road network, and several industrial estates. The city’s economic vitality is a testament to its potential for further growth and development, which this loan aims to catalyze.
The DPWH’s Laguna Lakeshore Road Network Project will have 8 interchanges, namely: Sucat, Alabang, Tunasan, San Pedro/Biñan, Santa Rosa, Calamba and Cabuyao. (IMAGE: https://www.dpwh.gov.ph/)
De Jesus also provided further details on the loan allocation:
Around PHP2.665 billion will be used for the construction of a new three-story city hall, college buildings, a sports arena, a public market, and the establishment of a Digital Education and Free WiFi Program for the Pamantasan ng Cabuyao. These projects are expected to create a more dynamic and vibrant urban environment, promoting education, sports, and commerce.
Meanwhile, PHP1.233 billion will go towards the construction and rehabilitation of roads, bridges, and flood control projects. Improved infrastructure in these areas is crucial for enhancing mobility, safety, and disaster resilience, making the city more accessible and better prepared for natural calamities.
Finally, PHP102 million will be designated for the procurement and installation of street lighting in various barangays in the city. This initiative aims to improve public safety and security, enhancing the quality of life for residents by ensuring well-lit streets and neighborhoods.
“Under our ASENSO Program, DBP has approved PHP110 billion in loans to 381 local government units, with PHP33.7 billion in total disbursements and a PHP32.5 billion outstanding principal balance as of end-February this year,” de Jesus noted. These figures reflect the significant impact of the ASENSO program across the Philippines, demonstrating DBP’s commitment to local government financing.
“DBP aims to collaborate with more local government units to finance their priority projects under the ASENSO program, accelerating and sustaining socio-economic development in their communities,” he added. This ongoing collaboration is essential for maintaining momentum in local development, ensuring that communities continue to thrive and evolve.
About DBP
As the country’s pre-eminent development financial institution, DBP has taken upon itself the strategic task of influencing and accelerating sustainable economic growth, through the provision of resources, for the continued well-being of the Filipino people.
The DBP, under its new charter, is classified as a development bank and may perform all other functions of a thrift bank. Its primary objective is to provide banking services principally to cater to the medium and long-term needs of agricultural and industrial enterprises with emphasis on small and medium-scale industries.