STATE-RUN Development Bank of the Philippines, the eighth-largest lender in terms of assets, is funding the construction of two major building projects in Cebu province, which is seen to improve the delivery of basic government services and boost the competitiveness of the local economy.
Bank president and chief executive Cecilia Borromeo said the bank signed a P1.5-billion loan agreement with the Cebu provincial government for the construction of a new 20-storey office building. The bank also granted a P3-billion loan to a local developer that will put up a mixed-use development tower in Mandaue City.
“This projects illustrate how DBP is assisting local government units in improving their service delivery and partnering with the private sector to stimulate economic activity in the region,” Borromeo said.
Cebu is the most populous province in Visayas with close to three million residents. The province was cited by the Commission on Audit as the richest province in the country, while the capital city is the center of economic activity in the entire Visayas region.
The 20-storey building will rise inside the Cebu capitol compound and house most of the provincial offices. The building will serve as a “one-stop shop” and provide comfort and convenience to the transacting public while providing income to the local government through the lease of the commercial spaces in the property.
Borromeo also said the DBP approved a P3-billion loan to Cebu Landmasters Inc. to partially finance the construction of its Astra Centre as well as to support the company’s working capital requirements.
Strategically located at A.S. Fortuna Street in Mandaue City, the Astra Centre will have a mall, office spaces and condominium units, and will also house the first Radisson Red Hotel in Asia.
Cebu Landmasters is a leading local developer in Cebu province. It is also developing the Davao Busines Park in Matina, Davao City.
Earlier, DBP also extended a P2-billion assistance to the Philippine
Army Finance Center Producers Integrated Cooperative for relending to
uniformed personnel. PAFCPIC is one of the largest cooperatives in thecountry composed mainly of members of the military.
The assistance to the cooperative was aimed at broadening support to small borrowers like soldiers and micro-entrepreneurs who wish to set up their own business or expand their operations.
Borromeo said DBP was prepared to provide similar assistance to other cooperatives, pursuant to the bank’s mandate to assist budding entrepreneurs.
Net income of DBP rose 4 percent in the first six months of 2018 to P2.76 billion from P2.65 billion a year ago on the sustained strength in lending and deposit activities. Loans and deposits both posted double-digit
expansion from January to June this year.
Borromeo said the rise in net income was a testament to the efficacy of the reforms and innovation the bank has made during the past several months.