THE Development Bank of the Philippines (DBP) said it approved a P311.8-million loan to Tuguegarao City which will fund infrastructure and farming projects.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the loan will be used to build a housing project, drainage systems, an evacuation center, and pave roads.
The loan proceeds will also be used to buy farming equipment, he said in a statement Tuesday.
The loan was extended under the Assistance for Economic and Social Development (ASENSO) for LGUs Financing Program – Bayanihan Interest Subsidy Fund.
Under the program, the bank said that the National Government subsidizes half of the 4% interest charged to local government units (LGUs).
Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II) allotted P1 billion each to government banks to provide interest subsidies to LGUs that need additional financing for pandemic recovery programs.
“The DBP is confidently making a leap forward to support more inclusive growth initiatives in LGU Tuguegarao City,” Mr. Herbosa said.
“These worthy initiatives will be pursued under a framework of inclusivity — where people are mainstreamed into the growth process both as beneficiaries and contributors.”
The DBP previously extended two-term loans amounting to P120 million in 2017 and P600 million in 2018 to Tuguegarao City. These grants were used for education, public works, and solid waste management projects.
The bank approved P38.28 billion in credit for the economic recovery programs of more than 100 LGUs in the first six months of 2021.
Launched last year, the ASENSO program has helped fund infrastructure, housing, sanitation, telecommunications, and disaster management programs in 51 Luzon LGUs, along with 40 in Mindanao and 19 in the Visayas. — Jenina P. Ibañez