DBP allots P69.6B for pump-priming projects

The state-owned Development Bank of the Philippines said it has earmarked P69.6 billion of its funds to help finance projects and programs under the government’s pump-priming initiatives.

In a statement, DBP president Francisco del Rosario said the fund would mostly support projects and program in the areas of infrastructure and logistics, environment, social services, and micro, small and medium enterprises (MSMEs).

“DBP reaffirms its commitment to continue performing its pivotal role as key driver of sustainable development,” Del Rosario said.

“We are encouraging investors to tap our funds in pursuit of their various development initiatives,” the bank president added.

Of the amount, P22.1 billion was set aside for MSMEs. The government said helping the MSME sector was vital to development efforts, noting that MSMEs accounted for about 97 percent of all enterprises in the country.

Another P21.2 billion of the total fund was allocated for environment-related projects. This would include those on water supply and sanitation, industrial pollution control and the promotion of renewable energy.

Logistics and infrastructure such as roll on-roll off and road networks and food storage systems would get P20.7 billion from the DBP fund.

The balance would be used to finance projects related to the areas of health and education.

The Development Bank of the Philippines said it would continue increasing its lending activities to support the economy’s pump-priming needs.

The economy, measured in terms of gross domestic product, grew 4 percent in the first semester. This was a slowdown from the more than 8-percent expansion in the same period last year.

The slow growth in the first semester has prompted the government to cut its growth target for this year to 4.5-5.5 percent from a range of 5 to 6 percent.