The Development Bank of the Philippines (DBP) has extended a credit assistance amounting to P441 million for the development of the 2MW Bao River hydroelectric plant in Kananga, Ormoc City, Leyte.
DBP President and Chief Executive Officer Michael O. de Jesus revealed that the credit assistance was granted to Leyte V Electric Cooperative, Inc. (LEYECO V) under the bank's Financing Utilities for Sustainable Energy Development (FUSED) program. This move is part of DBP's ongoing support for the national government's target of increasing the share of renewable energy (RE) in the country's power generation mix to 35% by 2030.
"DBP is one with the national government in fortifying its efforts to secure a sustainable energy future for the country," de Jesus stated. " This partnership with LEYECO V is a clear manifestation of our commitment to support the development of a vibrant and resilient renewable energy sector in the Philippines"
Highlighting the potential power shortage in Leyte and Samar by 2027, de Jesus emphasized the necessity of new power generation plants. Without them, the provinces may experience a deficit of up to 115MW. To address the rising electricity demand in the area and boost power supply in the northwestern part of Leyte, which comprises 11 municipalities and one city with a population of over 650,000, the development of the Bao River plant is crucial.
"With this existing partnership and future partnerships ahead, we hope that together, DBP and LEYECO V can continue to be instruments of change that will help build a more just and sustainable future for all," de Jesus added.
DBP's Senior Vice President and Officer-in-Charge of the Development and Resiliency Sector, Carolyn I. Olfindo, revealed that the bank has already approved nearly P77 billion in loans under the FUSED Program. Out of the total loan portfolio, approximately 30%, or 27 accounts, are dedicated to new renewable energy projects. This demonstrates DBP's shift in policy towards sustainable and greener power sources.
"DBP is eager to work with more electric cooperatives, private corporations, and local government units in bankrolling sustainable and environmentally-sound projects that would address power system supply constraints," Olfindo expressed.
Capsule Laying and Groundbreaking Ceremony of the LEYECO V 2MV Bao Hydroelectric Power Project are (from left to right): Philippine Rural Electric Cooperatives Association President Joselito P. Yap; former Power Generation Unit Chairman Engr. Creascente C. Lopena; ECOGEN Renewable Energy Corp. President Mr. Renault M. Lao; LEYECO V Board President Emmanuel S. Arpon; LEYECO V General Manager Atty. Jannie Ann J. Dayandayan; Ormoc City Councilor Lalaine Marcos (representing Mayor Lucy Marie Torres-Gomez); DBP Tacloban Lending Center Head Atty. Janet L. Dacillo; NEA Representative Mr. Isak Jonathan V. Villanueva; Kananga, Leyte Vice-Mayor Miguel Jorge Tan; and Meadowland Developer President and CEO Mr. Michael Cañete.