DBP launches new program for renewable energy projects
BUTUAN
CITY -- State-owned Development Bank of the Philippines (DBP) has launched a
new loan program to expand support for utility-scale solar power developers in
the country and bolster investments in the renewable energy sector, a top
official said.
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| Contributed photo |
DBP
president and chief executive officer Emmanuel G. Herbosa said the bank’s Solar
Merchant Power Plant (SMPP) Financing Program aims to provide funding support
to solar power developers intending to sell electricity through the Wholesale
Electricity Spot Market with a longer tenor of up to 12 years with a one year
grace period on principal payment.
“DBP is
ready to provide financing to viable solar power developers for their capital
expenditures such as the construction or expansion of their infrastructure
facilities, acquisition of machinery and equipment, among others,” said
Herbosa.
DBP is the
fifth 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; environment; social services
and community development.
Under the
SMPP program, qualified borrowers are entitled to a maximum loanable amount of
up to 60% of the total project cost for projects located in Luzon, and up to
50% for projects in the Visayas. Reimbursement of eligible solar merchant power
projects may also be availed of provided the completed project does not exceed
one year from date of project completion.
Herbosa said
the new program is expected to contribute to the National Government’s goal of
increasing solar photovoltaic capacity in the country from 2.16 Gigawatts (GW)
in 2020 to 15.29 GW in 2030.
As a bank
for the environment, DBP aims to boost investments in the green energy sector
and proactively support the national goal for renewable energy to account for
35% of the country’s power generation mix by 2030, as set in the Philippine
Energy Plan (2018-2030), he added. (DBP/PIA-Caraga)
