DBP approves P1.4-B loan for Bukidnon hydropower plant
MANILA -Development Bank of the Philippines green lighted a P1.4-billion loan for a 8.4-megawatt hydropower plant in Bukidnon, which is being developed by a local renewable energy firm.
Michael de Jesus, DBP president and chief executive, said in a statement the loan granted to Bukidnon-based Investco BHPI Inc. was made under DBP’ Financing Utilities for Sustainable Energy Development (FUSED) Program.
The program is aimed at helping increase access to electricity services particularly in the countryside, and in line with the national government’s efforts to expand new and sustainable energy sources.
Investco BHPI holds a service contract awarded by the Department of Energy to develop a 8.4MW mini hydro electric power plant along the Maladugao River, at a site in Kalilangan town.
As a service contractor and registered renewable energy developer, the company has the exclusive right to explore, develop and use hydro power resources within the contract area.
The power plant is expected to go online in 2025 and, for this purpose, Investco BHPI also signed a 15-year power sales agreement with First Bukidnon Electric Cooperative or Fibeco.
The sales covers an initial 5.5-MW of capacity for the use of consumers in the southern part of Bukidnon, including Valencia City.
When the power generation capacity is made available, it is expected to help mitigate the impact of a looming energy shortage in the province that is expected to be felt by 2028, based on data from the Department of Energy.
“More importantly, this project is seen to stimulate the growth of local industries and small businesses and generate more economic opportunities for the people of Bukidnon,” de Jesus said.
The CEO added that under the FUSED program, DBP has approved a total of P81.5 billion in loans to 95 borrowers. Also, total loan releases have reached P57.2 billion as of the end of September.