Development Financing:
The Development Bank of the Philippines
Experience
BENEL D. LAGUA
Executive Vice President &
Chief Development Officer
Development Bank of the Philippines
Outline of Presentation
1. The Development Bank of the Philippines
2. Priority Development Thrusts
•
•
•
•
Infrastructure and Logistics
Environment
Social Services & Community Development
Micro, Small and Medium Enterprises
3. Corporate Social Responsibility
4. Corporate Scorecard
5. A Commitment – The DBP Credo
6. Closing
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A Development Institution Focused on
the Well-being of the Filipino
 Premier developmental financial institution
 100% government owned, 92 branches
 Ranked #6 in the Philippines; Assets = P433B
 Remits at least 50% of net income to government
annually
Mandate:
 To influence and accelerate
sustainable economic growth
 To service the financing needs of
enterprises, infrastructure
efficiency, livelihood and job
creation.
3
DBP is a conduit for:
• Industrial Guarantee and
Loans Fund (IGLF)
• Official Development
Assistance (ODA) Funds
–
–
–
–
ODA
IGLF
JICA
KfW
World Bank
ADB
4
Development By Partnership
Competitive rates
based on credit rating
Flexible grace
period
Options to
fix rate
Short-Term and
Long-Term Financing
Contributes to the
National Treasury
5
DBP’s Drive towards Inclusive Lending
LGU +
Water +
Power +
Health +
Education
Corporate
Banking
Middle
Market
MSME
6
DBP’s Priority Development Thrusts
Infrastructure
and Logistics
Environment
Initiatives
Social Services
& Community
Dev’t
Micro, Small
and Medium
Enterprises
DBP’s Priority Development Thrusts
Infrastructure
and Logistics
Environment
Initiatives
Social Services
& Community
Dev’t
Micro, Small
and Medium
Enterprises
Strategic Framework
PHILIPPINE DEVELOPMENT PLAN 2011-2016
DBP PRIORITY THRUSTS: INFRASTRUCTURE & LOGISTICS
Transport, Logistics, Tourism
CONNECTING PEOPLE
CONNECTING MARKETS
CONNECTING SUPPLY CHAINS
CONNECTING COMMUNITIES
CONNECTING INFORMATION
Through Transport, Logistics, and ICT
Systems
CRUISE
LIDP
EDP
DSMP
SGF
EISCP
SGF
ISSEP
SGF
IGLF
BANK
FUNDS
PROJECT FINANCING
TECHNICAL ASSISTANCE & ADVISORY SERVICES
PROMOTIONS AND ADVOCACY
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CRUISE Program
Connecting Rural Urban Intermodal Systems Efficiently
• DBP’s platform towards a vision of SEAMLESS
CONNECTIVITY
• DBP supports the transport and logistics sector as a
provider of medium and long-term funds due to the
sectors’ critical role in sustaining economic growth
• Niche markets for DBP include PPP projects at the
national and local levels as well as private-sponsored
projects in shipping, logistics, freight forwarding and
tourism
Focus Areas of CRUISE
Transportation
• Road, Water, Air and Rail Transport Infrastructure
& Services
• Urban Transport and Non-Motorized Transport
Logistics
• Warehousing
• Cargo Consolidation
Tourism
• Tourism Accommodation Facilities
DBP’s Development Thrusts
Infrastructure
and Logistics
Environment
Initiatives
Social Services
& Community
Dev’t
Micro, Small
and Medium
Enterprises
DBP Environment Initiatives
• Committed to environmental protection and
sustainable development
• One of the first PH bank to integrate
environmental considerations in all aspects of its
operations
• Provides financing as well as technical assistance to
projects that are environmentally sound
• Plays an active role in encouraging clients and PFIs
to include environmental considerations in their
businesses and thrusts
DBP Environment Initiatives
DBP is the 1st
Philippine bank to
be ISO 14001
certified
DBP is a member of the United Nations
Environment Program Finance Initiative 14
Green Financing Program Initiatives
• Sustainable Solid Waste Management Program
• Clean Alternative Transport Fuel Financing
Program
• Climate Change and Carbon Financing Facility
• Water Supply and Sanitation Services
• New and Renewable Energy Projects
• Tree Plantation Financing Program
• Philippine Water Revolving Fund
• Regional Infrastructure for Growth Project
Green Financing Program Initiatives
Contribution in Renewable Energy Development
LUZON – 148.12 MW
(On-grid- 144.94 MW, Off-grid – 3.18 MW)
VISAYAS – 10.50 MW
(On-grid – 10.50 MW)
MINDANAO – 6.47 MW
(On-grid – 5.97 MW; Off-grid – 0.50 MW)
Green Financing Program Initiatives
Beneficiary Negros Island
KWH
3,251,576 KWH
Generated
CO2
avoided
1,476 Tons
Fuel oil
equivalent
6,136 barrels
FOREX
Savings
US$ 0.662 Million
8 MW Bio-ethanol Cogeneration Plant
San Carlos, Negros Occidental
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DBP’s Development Thrusts
Infrastructure
and Logistics
Environment
Initiatives
Social Services
& Community
Dev’t
Micro, Small
and Medium
Enterprises
Social Services and Community
Development
Providing for the Filipino’s Basic Needs
• Lends to projects for health care, education,
housing and community development
• Helps provide access to shelter for the poor
while supporting the development of
infrastructure and community facilities in cities
and municipalities
Human Development Initiatives
Education:
• Higher Education Loan Program for Students
• Financing for Public Basic Education
• Financing for Higher Education
Shelter and Health Care:
• Sustainable Shelter Development Program
• Financing for Public Safety Initiatives
• Sustainable Health Care Investment Program
DBP-Financed Hospital Projects
DBP’s Development Thrusts
Infrastructure
and Logistics
Environment
Initiatives
Social Services
& Community
Dev’t
Micro, Small
and Medium
Enterprises
MSMEs’ Contribution to the Economy
No. of
Establishments
Large
Value
Added
Jobs
Generated
0.4%
35%
Micro,
Small and
Medium
64.3%
99.6 %
65%
35.7%
MSME
Large
Source: 2012 List of Establishments, NSO
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Integration of DBP’s MSME Functions for a
More Cohesive, Effective and Efficient
Service Delivery to MSMEs
SMILE
Department
Expansion of
DBP SME
Unit into
SMILE
Department
Wholesale
Lending Dept.
Creation of
responsive &
MSME
Friendly
credit policies
SME GROUP
Creation of
Automated
Credit Scoring
System,
sponsored by
Innovations for
Poverty
Alleviation
(IPA), USA
Setting up of
Regional SME
Centers
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Strengthening Collaboration with
SME Development Partners
 NERBAC
 Participation
in SME
Road Shows
Participation
in Business
Forums
 Financial
Literacy for
SME Clients
SME
 Membership
in SME
Organizations
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CSR Statement
“As a catalyst for a progressive and
poverty-free Philippines, DBP is
committed to upholding its corporate
citizenship program through initiatives
that promote the welfare of the Filipino
people, particularly the underprivileged.”
CSR Programs
It is NOT a loan
project.
It is an assistance/
partnership project.
DBP Forest Program
A non-credit program that aims to stop denudation and restore the
country’s forest cover through organized collaboration with LGUs,
NGOs, SUCs, POs and other qualified forest partners.
It was conceptualized in December
2004 as an offshoot of the Infanta,
Quezon tragedy
There are now 43 Forest Projects
nationwide since its launching in
2005.
Classification of DBP Forest:
1. Upland Forest – 27
2. Mangrove Forest – 16
DBP Endowment for Education Program
• The DBP Endowment for Education Program (DEEP) is a
CSR project that supports the best and the brightest high
school (secondary) graduates from indigent families.
• Through DEEP, the Bank sends poor but deserving high
school students to college. Scholarship assistance covers the
whole range of the students’ requirements, including books,
cost of living, and allowances.
• Now a brand name and a mainstream activity firmly
defining DBP’s mandate as a development institution,
DEEP supports a total of 2,542 scholars as of November
2013.
A Commitment – The DBP Credo
• Committed to a progressive Filipino society
• Mission is to make the Filipino productive and
competitive
• Work as partners with those taking the lead in
development
• Commitment to service is before personal ambition
• Trademarks are: Integrity and Competence,
Teamwork and Professionalism
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Closing
“ He who survives is not the strongest nor most
intelligent . . . . But he who is more responsive
to change and is flexible to adopt to
situations”
– Charles Darwin
Development Bank of the Philippines
Thank you.
bdlagua@dbp.ph
Mabuhay!
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