DBP gets World Bank loan worth $50M for relending

The World Bank has approved a $50-million loan for Development Bank of the Philippines for relending to infrastructure development initiatives in various regions in the country.

The loans will be extended by DBP particularly to local government units, public utilities and state-owned firms that are engaged in the development of infrastructure projects in various parts of the country.

The lending program is under the “Regional Infrastructure for Growth Project.”

It is seen consistent with the government’s infrastructure development agenda, the World Bank said in statement.

“The project will finance a wide array of local public infrastructure projects and services that meet the objective of improving physical and economic integration,” DBP president Francisco Del Rosario said in the same statement.

“These projects will be among the priorities identified by a provincial agency or by a regional body or authority through their development and physical framework plans,” Del Rosario said.

According to the World Bank, projects eligible for the loan are environmental infrastructure, such as water supply and solid waste facilities, and drainage systems; agriculture support systems such as irrigation, small impounding reservoirs, and supply chain infrastructure; disaster risk mitigation projects, such as sea walls, flood protection, and slope protection; social development projects, such as school buildings, hospitals and health centers; transport improvement projects, such as provincial and local roads, local ports, public transport facilities, and tourism support projects, such as eco-parks, convention centers, heritage sites and resorts.

“Many poor communities in the Philippines do not have access to adequate physical and economic infrastructure and services that promote integration such as vital link roads and bridges, and critical inputs such as electricity and water supply, among others,” said World Bank acting country director Chiyo Kanda.

“That is why the World Bank is committed to work with development banks, LGUs and other stakeholders to accelerate the implementation of these provincial and regional priorities,” Kanda added.

The said infrastructure projects were deemed necessary especially in view of the economy’s disappointing performance so far this year.

The economy, measured in terms of gross domestic product, grew by 3.6 percent in the first three quarters of the year. This made the full-year growth target of 4.5 to 5.5 percent likely to be missed, government officials admitted.

The slower-than-expected growth in January to September was blamed partly on the under-spending by the government and delays in the implementation of infrastructure projects under the Public-Private Partnership (PPP) program.

The PPP program aims to get the private sector to invest in public infrastructure projects.

Concerned officials said projects under the PPP program were expected to materialize in 2012. Michelle V. Remo