Building Partnerships, Improving Lives 1 DBP is Now on Facebook 5 CONTENTS DBP Increases Loans to Priority Sectors 6

DBP Honored for 8 Development Initiatives

DBP Hailed Best Workforce 12 42 Beyond Farming: Paves the Way for Progress in the North DBP Expands ATM Services to Underbanked 13 and Areas 45 DBP-funded Modern Poultry Project Opens in Towards Lasting Peace and Progress 14 in Mindanao 46 Growing Bananas Liangan Power Corporation: Advocating 16 Energy Sustainability in Mindanao 49 DBP Rolls Out Governance Circles

DBP Introduces E2Save 19 50 DBP RISE Banks on the Youth For Energy Effi ciency

Shade’s Out, the Future’s Bright 20 NEWS ROUND-UP Revolutionizing Palawan’s Energy Future 22 52 DBP-Backed Infra Projects to Boost Supreme Power Corporation 26 Economic Activity in Tuguegarao City Powering Up Community Development 53 DBP Seals Pact with LGU, Fintech Are You a Borrower of DBP 28 Firm to Benefi t Local Farmers or Other Financial Institutions? 54 DBP-Funded Infra Projects to Rise in DBP’s Maiden ASEAN Sustainability Bonds 29 Raised P18.125-B on PDEx 55 DBP Supports Parašaque City Student Assistance Program ULAT DBP: A Report on DBP’s 30 3rd Quarter 2019 Performance 56 DBP Pumps Up Digitalization Efforts Building Roads, Redefi ning Progress 36 57 DBP Joins Global Movement for Responsible Banking Apo Agua Infrastructure, Inc.: 40 Delivering Safe and Sustainable Water 58 Pasko sa DBP

EDITORIAL STAFF ABOUT THE COVER The Development Bank of the works Zandro Carlos P. Sison together with strategic development partners such Editor-in-Chief as industry and businesses, fi nancial institutions, rural banks, local government units, national government Criselda V. Codera Rolando L. Carcamo agencies and non-government organizations to fulfi ll Marianne P. Garcia Ruth Desiree V. Zabala its developmental mission for the benefi t of more and Editors Creatives more .

Jayvee P. Cortez Rodolfo D. Castro Maria Niecel B. Fullido Lyndon A. Joson Alni Dorothy Alfa R. Emphasis Photographers Edille Anne Z. Reyes Ma. Bernadette D. Zamora Writers

The DBP Development Banker magazine is published quarterly by the Corporate Affairs Department of the Development Bank of the Philippines with address at the Ground loor, DBP ead ffi ce building, en. il Puyat Avenue corner akati Avenue, akati ity.

Telephone Number: 8815 - 0904 E-mail infodbp.ph

Articles in this publication may be uoted or reprinted provided acknowledgment of source shall be stated. Building Partnerships, Improving Lives Ecerpts from the speech of DBP President and E Emmanuel . erbosa at the Rural Bankers Association of the Philippines 62nd Charter Anniversary Symposium 7 November 2019 | Pandanggo Polkabal Ballroom, anila otel

n a time when everyone in the banking This brings me to the theme of our session sector is talking about the noble goal -- “Building Partnerships: Improving Lives” which of promoting fi nancial inclusion in the I believe aptly describes what we in the DBP countryside, I believe that the role of rural have been doing all along, all through our 72 banks has never been more critical. After years as a development fi nancial institution. Iall, you (rural banks) know the market in the Over the years, DBP has relied heavily on its countryside. You provide credit to primary food partnerships with other stakeholders in pursuit of producers such as farmers, fi sherfolk and small its developmental mission -- to the point that businesses that commonly belong to the most the acronym of the name of our bank, DBP, marginalized sectors of the economy. And we in can also mean Development By Partnership. the DBP would want to tap on that unique value Without the support of our strategic partners proposition of yours to achieve our common like rural banks, other government agencies, goal of promoting fi nancial inclusivity. and the private sector, DBP cannot effectively

DBP DEVELOPMENT BANKER | July - December 2019 1 fulfi ll its role as a catalyst for a progressive and prosperous Isabela governor Rodito T. Albano III (middle) hands over a DBP PayMaya ID to a Philippines. farmer. Also in photo are DBP president and chief eecutive offi cer Emmanuel G. Let me zero in on the word Herbosa (right) and Isabela vice governor Faustino Dy III (second from right). ‘catalyst’ which we use to pertain to any individual or party causing change. A catalyst can cause change by itself; but imagine how fast that change can be when the catalyst works with others?

Agribusiness Financing ur latest fi nancing initiative for the rice farmers in Isabela shows how working with different stakeholders can spark change. e are taking a holistic approach in agricultural fi nancing not only by providing fi nancing for the farmers, but also by tapping government institutions to provide facilitation and technical assistance and initiating linkages of the farmers to the off-takers. This project also provides the blueprint on how DBP and rural banks can work together. Called the Agribusiness Financing Program, this puts you, the rural banks, at the forefront of lending to individual farmers for production loans. ou will be working side by side with us cigarettes, barley, and native tobacco. ee in promoting value chain coordination and related story on page . cooperation. It should improve the overall productivity of As you can see in our business model, our farmers and open possible entrepreneurial farmer-borrowers will have to approach our endeavors through available technology. partner-rural banks in sabela. hese rural banks Our hope is that in the future, these farmers will handle the loan evaluation, approval, and will eventually become depositors and release. hey will also send a list of approved entrepreneurs. loan applications to the farmers’ cooperative or The Agribusiness Financing Program buyers. can provide you, the rural banks, with the Our job will be to provide the working opportunity to sustain your strong position over capital for palay procurement of farmers’ the agri-lending market. e will rely on your cooperatives. he farmers’ cooperatives, knowledge of farmers and their cooperatives to meanwhile, will buy palay from members/ move this program forward. n short, you can be farmers and credit the payment to the farmers, our valuable partners in this endeavor. net of loan amortization, to rural banks. hey will Aside from lending to farmers and fi sherfolk, also send remittance reports to our partner-rural there are other areas of cooperation that we banks and sell the rice to the off-takers like the can eplore. local government units and the Department of We should all remember the government Agriculture. is the largest generator of fund transfers – his fi nancing program leverages the power conditional tax transfers, tax payments, and of digital fi nancial services in promoting inclusive other miscellaneous fees. As a government growth in the countryside and subsequently, fi nancial institution, it is DBP’s ob to create the alleviating the plight of the farmers. most effi cient channel to effect such inward and A few weeks ago, we issued DBP PayMaya outward transfer. A identifi cation cards to rice and tobacco In addition, we can talk about working farmers who belong to the Nagkaisang together so that large corporations have a Magsasaka ng Isabela Agricultural Cooperative nationwide collections and payment network for or A. hrough these A cards, the insurance premiums, tuition payments, among farmers will be able to receive their proceeds others. e can also eplore the possibility of of the excise taxes from locally-manufactured using the network to create larger participation

2 DBP DEVELOPMENT BANKER | July - December 2019 DBP fi nances the acquisition of modern energy- effi cient and environment-friendly passenger utility vehicles through its PASADA program.

hrough the DBP PAADA program jeepney drivers are integrated into the fi nancial mainstream.

in the government securities or stock markets. to promote the well-being of disadvantaged give these eamples as concrete fulfi llment sectors of the society. As describe their of the fi nancial inclusion obectives of the initiatives, I wish to emphasize that DBP has taken government. the lead to demonstrate that it can be done. To realize this promise, we have to do the owever, it is our epectation that the rural basics. And by that we mean a thorough re- banks will use these templates and cascade examination of how we can do nationwide it as lending opportunities to your respective payments and settlements using technologies cooperatives. and approaches that are at par with what is already available in Australia, Singapore, or DBP PASADA omalia. The DBP Program Assistance to Support es, you heard it right, omalia, because Alternative Driving Approaches, or DBP PASADA, the country has a funds transfer system that is our contribution to the National Government’s puts the Philippines to shame. o that end, public utility vehicle modernization program. am happy to share DBP has already started hrough this funding facility, we help ualifi ed working on such a settlements platform with a transport cooperatives and corporations that working group of your fellow rural banks and are registered with the ffi ce of ransport the Society for Worldwide Interbank Financial ooperatives to acuire modern eepneys. elecommunication or . While this is our contribution to the National With DBP in the picture, we are committed Government’s efforts to modernize public to building a platform that is premised on an transportation, I also consider it as part of DBP’s open business and technology mode. And in advocacy to include as many Filipinos into the so doing, I believe this is an excellent manner fi nancial mainstream as possible. DBP PAADA for DBP to likewise meet its mandate of being a fi nances the acuisition of modern, energy- partner of the rural banks. effi cient, and environment-friendly passenger Indeed, there are plenty of things that utility vehicles, and thus impacts the lives of DBP and rural banks can work on in the future. hundreds of drivers. Believe me when I say that you can be more The Taguig Transport Service Cooperative, than ust remittance partners of DBP. has acquired 30 modern PUVs through DBP’s Allow me to cite some of our initiatives that funding assistance. ith two drivers and two we have undertaken with other stakeholders PAOs assigned to each PUV unit, we have

DBP DEVELOPMENT BANKER | July - December 2019 3 Photo below shows the signing of the MO between DBP and OPPAP from left: DBP board director Maria Lourdes A. Arcenas Presidential Peace Adviser Carlito G. Galvez Jr. DBP president and chief eecutive offi cer Emmanuel G. Herbosa ndersecretary Arnulfo R. Paarillo; and DBP rust offi cer Ma. eresa . Atienza.

Right photo shows DBP director Arcenas.

helped at least people gain employment. entures nc. and nifrutti ropical Philippines, opefully, they will also learn the value of saving nc. in Barobo, urigao del ur. nce fully and investing in the very near future. developed, this new plantation shall provide employment to around a thousand people in Initiatives in Mindanao indanao. I would also like to discuss another endeavor We in DBP are extremely proud to be which is close to my heart. t’s something which supporting Unifrutti because this group is one I had mentioned before during my previous of the largest producers of export-quality speech before BAP offi cials, and this is DBP’s avendish bananas in the country. hey have support to the peace process. e fund also been very active in spurring economic programs and projects to help improve the development even in the so-called con ict social infrastructure in Mindanao, and to help areas in indanao. hey are operating a the region achieve its full potential. 272-hectare banana farm in Bumbaran, Lanao Recently, we formalized our partnership del Sur where Muslims and Christians can, and with the ffi ce of the Presidential Adviser on are, working harmoniously with each other. the Peace Process, or OPAPP, to help in the In closing, I would like to invite you, the disbursement and management of the funds rural banks, to take on a more proactive role donated to the agency. he DBP rust Banking in spreading development in the countryside Group will serve as the overall fund manager, by partnering with DBP. et’s work closely in providing fi duciary arrangement support bringing fi nancial services to small borrowers involving disbursement management, fund like farmers, fi sherfolk, and entrepreneurs in acceptance, and fund management. the rural areas and in the process, support the In addition to our OPAPP engagement, we government’s aim of reducing poverty through also remain committed to the developmental ob generation. ogether, we can build on programs and projects that can promote the gains of the burgeoning local economy socioeconomic growth in the region. ust last and help improve the lives of more Filipinos month, I was at the groundbreaking ceremony nationwide. of a banana plantation of t. itanglad Agri- hank you and good morning. ■

4 DBP DEVELOPMENT BANKER | July - December 2019 DBP is Now on

BP has expanded its efforts to reach out to more and more development stakeholders by Dstepping into the social media platform. he banks recently- launched offi cial acebook page has already earned the blue verifi cation badge.

Over the years, the Internet has created a platform for connectivity and the world wide web has made information sharing highly achievable. Advancements in data transmission has made it possible for information to travel around the world in mere seconds. All types of information could now be instantly shared and re- shared. Anyone with internet access can now be reached with a click of a button on a computer or a tap on a smartphone. As the nation faces today’s ever-changing milieu, DBP as a responsive development bank aims to @devbankphl continue embracing all the major shifts not only to provide the vital link among industries, sectors and regions, but also to engage its stakeholders meaningfully in the hope that they would Like and partake in spreading the gains of development. To keep up with the rapid pace of change, follow DBP has taken on another platform to better us now! serve its clientele. he country’s nfrastructure Bank is fi nally on one of the most prominent social media platforms online – DBP is now on Facebook! This latest undertaking is a part of the bank’s commitment to promote fi nancial inclusion by reaching out to provide fi nancial education and information to the underbanked and underserved. By launching the offi cial DBP acebook page, the bank further advances its pursuit of excellence in all facets of its operations, while adhering to the highest standards of good Be in the development loop. ike the offi cial governance through enhanced stakeholder DBP acebook page www.facebook.com engagement and information. devbankphl ■

DBP DEVELOPMENT BANKER | July - December 2019 5 DBP Increases Loans to Priority Sectors

BP broadened its support to priority Herbosa attributed the increase in its sectors in the third quarter of the loan portfolio to aggressive lending activities year, disbursing a total of P329.1- through its 22 lending centers, which were billion in loans to borrowers, showing established in 2018 to fast-track the credit a 33.8 percent increase from the application process and streamline client servicing. DP246-billion recorded during the same He said majority of the projects period last year a top offi cial said. fi nanced under the infrastructure and logistics sector comprise energy, water DBP president and chief eecutive offi cer resources, information and communication Emmanuel G. Herbosa said bulk of the bank’s technology, transportation, construction, and loan portfolio went to the infrastructure and manufacturing initiatives, and are located in logistics sector that accounted for nearly , Davao, , Cavite- 40 percent of loan releases amounting -- (), and to P152-billion, followed by loans to social the National Capital Region (NCR). services P67.3-billion; environmental projects, Herbosa said that DBP-funded social P44.6-billion; and micro, small and medium infrastructure projects involved health enterprises (mSMEs), P24.6-billion. care, education, housing, and solid waste “DBP will continue with its drive to promote management initiatives, most of which were economic inclusion and remain a relevant and concentrated in underserved provinces and responsive partner of the National Government municipalities, adding that “…majority of its in promoting sustainable development assistance for environmental projects were particularly in the countryside,” Herbosa said. located in CALABARZON, Central Luzon, DBP is the eighth largest bank in the Central Visayas, Davao, and NCR…” country with assets totaling P700.9-billion as “Our capital adequacy ratio stood at 14.7% of end-September this year and has been for the period ending September 2019, which is designated as the country’s infrastructure bank higher than the industry average of 12.2%.” ■ by the National Government.

6 DBP DEVELOPMENT BANKER | July - December 2019 DBP funds new and renewable energy projects such as Astronergy Development Gensan, Inc. (ADGI) that aims to produce 25MWp of power in General Santos City.

"DBP will continue with its drive to promote economic inclusion and remain a relevant and responsive partner of the National Government in promoting sustainable development particularly in the countryside."

Emmanuel G. Herbosa DBP president and CEO

DBP DEVELOPMENT BANKER | July - December 2019 7 DBP Honored forDevelopment Initiatives

BP’s innovative programs supportive of countrywide growth have made waves, earning praises from various Dprestigious institutions. NEA Golden Dagitab award for rural electrifi cation program. DBP was cited by the ational Electrifi cation Administration EA for its fi nancing program that supports the expansion and continuous development of electric cooperatives in the country. DBP president and chief executive offi cer Emmanuel . erbosa said EA conferred the “Golden Dagitab” award on the bank for its Financing Utilities for Sustainable Energy Development (FUSED) program, which has extended needed fi nancial assistance for the rural electrifi cation efforts of the ational Government. “We are honored by this recognition bestowed by NEA,” Herbosa said. “This recognition inspires us to look beyond our DBP board director Luis C. Bonguyan (2nd from role as a bank and validates that we are on right) receives the “Golden track in fulfi lling our mandate of promoting Dagitab” award for DBP from NEA Administrator Edgardo nationwide growth and development.” Masongsong (extreme right) and Energy secretary Alfonso Under the FUSED program, DBP provides Cusi (extreme left) during the fi nancing for proects involving power 2019 Golden Dagitab Awards. Also in photo are DBP fi rst vice generation, distribution and transmission as president Ma. Lourdes Gumba and DBP senior assistant vice well as the purchase of needed equipment president Rustico Noli Cruz. and machinery including enhancement of capacity of rural power suppliers. Herbosa said that by the end of the implementation of the FUSED program in 2030, DBP would have supported P40-billion (1.43%) out of the P2.8-trillion total estimated investment requirement for power

8 DBP DEVELOPMENT BANKER | July - December 2019 The three awards garnered by DBP during the 4th IHAP Awards 2019 are (from left): Best Fixed Income Deal; Best Advisory Deal; and Best Deal of the Year.

generation and distribution under the Philippine The transaction with the Energy Plan 2012-2030. Cordova Link Expressway Corporation “As of June 2019, DBP has already released involving the construction of a toll bridge, a total of P43.73-billion under FUSED, 22.58% viaduct and causeway is projected to of which comprised releases to rural electric serve at least 40,000 vehicles daily and cooperatives that cater to underserved ease congestion between the two islands. communities in various parts of the country,” Herbosa said once completed the Herbosa said. 8.5-kilometer toll bridge would provide The “Golden Dagitab” awards was additional access to the Mactan Cebu organized in celebration of NEA’s 50th founding International Airport and boost trade and anniversary and to recognize various industry commerce in the bustling province. partners and stakeholders which have played a He said the 21st tranche of the RTBs, key role in strengthening the government’s rural where DBP acted as joint issue manager, electrifi cation program. raised more than P121-billion for the National Government. DBP was among IHAP awards. The Investment House Association the top three selling agents for the RTBs of the Philippines (IHAP) has bestowed three with P11.9 billion in sales, which represent awards to DBP for its active participation in 10% of the total issue size. critical projects on infrastructure, renewable “We are honored to be again energy, and the latest issuance of retail treasury recognized for our role in developing the bonds of the National Government. capital markets by providing advisory, The Investment House Association of the issue management and debt syndication Philippines (IHAP) cited the P19-billion Cebu services to our valued clients,” Herbosa City-Cordova toll bridge project as Best Deal of said. the Year, while the 21st RTB issuance and the DBP’s transaction with CPI would acquisition of a solar portfolio by Citicore Power allow the company to increase its total Incorporated (CPI) were adjudged as Best Fixed renewable energy capacity from its Income and Best Advisory (Small – Mid Cap) present 163 megawatts (MW) to 1,000 Deals of 2019. MW and bolster its ability to service “We are extremely honored by these awards contestable customers through its Retail bestowed by IHAP,” Herbosa said. “DBP is driven Electricity Supplier License. to support noteworthy investment transactions “We see the transaction as a big for projects that have distinct developmental boost to government’s efforts to increase impacts.” to 50% the contribution of renewables of DBP provides fi nancing to strategic sectors the country’s total electricity generating such as infrastructure and logistics, micro, small capacity,” he said. and medium enterprises, social services and The IHAP Awards is aimed at community development and the environment. recognizing outstanding investment

DBP DEVELOPMENT BANKER | July - December 2019 9 banking transactions in the capital The bank won the Best markets that exhibited “innovation, Innovation in Financial Services excellence in execution, and a award for its Program Assistance positive impact to the maker and to Support Alternative Driving issuer.” Approaches (DBP PASADA) during The Global Sustainable Global award for public transport Finance Awards 2019 held in lending program. DBP received an Karlsruhe, Germany. international award for its financing “We are humbled by this program that supports the National award that recognizes our untiring Government’s Public Utility Vehicle efforts in helping the Duterte Modernization Program (PUVMP). administration achieve its goal

Photos below show the DBP-financed passenger utility vehicles (PVs) operated by Libra Jeepney Operator ransport Cooperative and Mandaluyong Transport Service that partcicipated in transporting athletes and guests during the recently-concluded 30th Southeast Asian Games. hese modern safe and environment-friendly PVs are equipped with i-i closed circuit television speed limiter LED screen, and Global Positioning System.

10 DBP DEVELOPMENT BANKER | July - December 2019 of modernizing the country’s public transportation sector,” Herbosa said in his acceptance speech. “Rest assured that DBP will continue assisting transport corporations and cooperatives in acquiring modern, safer, and environment-friendly public utility vehicles.” The award recognized the success of DBP in balancing the 3Ps — people, planet, and profi ts through the PASADA by embedding sustainability in lending and advancing the transformation to a low carbon and sustainable economy. of 93 jeepney units with a total loan Established in 2017, the DBP amount of P.-million. he fi nancing PASADA is a special loan facility program offers a fi ed interest rate of that offers reasonable terms to per annum inclusive of gross receipts ta corporations and cooperatives for the entire term of the loan, and a loan looking to acquire brand new, tenor of seven years. low-emission, and fuel-effi cient The Global Sustainable Finance public utility vehicles making the Awards were presented to fi nancial program responsive to the needs of institutions, relevant organizations, and the transportation section and the presidents and chief eecutive offi cers who National Government. The program have distinguished themselves through also fi nances the purchase and outstanding contributions to the fi eld of acquisition of support facilities such sustainable banking and fi nance. he as off-street garage charging stations awards are presented by the European and service centers necessary for the Organization for Sustainable Development, proper operation and maintenance the City of Karlsruhe in Germany, and the of PUVs. Association of Development Financing he DBP PAADA has assisted fi ve nstitutions in Asia and the Pacifi c. ■ transport operators in the acquisition

DBP won the Best Innovation in Financial Services award for its Program Assistance to Support Alternative Driving Approaches (DBP PASADA) during The Global ustainable inance Awards 09 held in arlsruhe Germany. he award recognized the success of DBP in balancing the Ps people planet and profi ts through the PASADA by embedding sustainability in lending and advancing the transformation to a low carbon and sustainable economy. Left photo shows one of the modern public utility vehicles fi nanced under the DBP PAADA. Right photo: he arlsruhe ustainable inance Award that was conferred on DBP.

DBP DEVELOPMENT BANKER | July - December 2019 11 Lingkod-DBP DBP Hailed Best Workforce BP was hailed by the Sustainable Business Awards (SBA) National Advisory Panel as the company with the “Best Workforce,’ citing the bank’s sustainable approach to Demployee engagement, well-being and diversity.

DBP president and chief eecutive officer Emmanuel G. Herbosa said DBP was one of the awardees of the recently-concluded Sustainability Business Awards (SBA) Philippines 2019, which was organized by Singapore- DBP president and chief eecutive offi cer Emmanuel G. Herbosa (right) accepts the Best Workforce award from the chairperson based Global Initiatives in partnership with and CEO of the ecurities and Echange Commission Emilio Benito Price Waterhouse Coopers Philippines and the Aquino (center) and Global nitiatives chief eecutive offi cer Anthony Gourlay (left) during the SBA 2019 Awarding Ceremony held at the Philippine Business for the Environment. Manila Peninsula Hotel. “We are greatly honored by this latest accolade,” Herbosa said. “This award validates sustainability benchmarks and our sustained efforts in creating a truly rewarding standards. DBP along with 15 workplace culture for our most valuable asset – other companies emerged as winners human resource.” in the 2019 SBA awarding ceremony. DBP has a branch network of 137 offices Herbosa said DBP was also cited nationwide. In 2014, the bank was adjudged by for promoting diversity in the workplace SBA for the category on Energy Management, while sustaining non-discrimination and Land Use, Biodiversity and Environment. and equal opportunity policy in the recruitment The SBA is an award conferred on and selection process of potential employees. companies for their outstanding performance “We are proud to note that DBP is home to on environmental and social sustainability. It ethnic groups such Cuyunon, Igorot, Ibanag is dubbed as the region’s leading sustainable and Tausug, to name a few,” award platform since 2012 and is designed to he said. ■ encourage companies to strive for continuing development through the introduction of new

DBP Employee Receives CSC Award Anew

Senior assistant vice president Helbert Antoine A. Achay of DBP’s Branch Banking Group (BBG)-Central and has been honored recently as the Regional Winner of the Civil Service Commission’s 2019 Search for Outstanding

Government Workers for Region 7. enior assistant vice president Helbert Antoine A. Achay of DBPs The CSC’s Search for Outstanding Government Workers aims to recognize Branch Banking Group (BBG)-Central and Eastern Visayas (left). public servants who have ecelled or shown dedication and commitment in government service while motivating other civil servants to strive for ecellence. Achay considers his major involvement in the DBP-Philippine Crop Insurance Corp. (PCIC) deal in Cebu as a significant accomplishment that qualified him to receive the CSC regional recognition, citing its impact on PCIC and the farmer- beneficiaries. Under the DBP-PCIC partnership, the bank pushed for greater financial inclusion with the distribution of DBP prepaid cards to farmers and fishermen in Cebu province to facilitate timely and convenient disbursement of indemnity claims of farmers and fishermen whose farms are insured by the PCIC. “I have this personal advocacy to create an impact and add value to the people around me – among my colleagues, our clients, and my family. I always try to come up with innovative ideas, such as those that promote cost reduction, or those on responsive financing models to channel assistance to sectors that should be helped. And it feels good that by doing our regular job, we realize the importance of what we do,” Achay said. nown for his consistent eemplary performance, Achay was also one of the five recipients of the Presidential awad E Award from the areer Eecutive ervice Board EB. is outstanding accomplishments and contributions that ualified him for the award spanned his efforts on product and process innovations, eemplary leadership, and eemplified community leadership. awad E is a Presidential award that recognizes members in the areer Eecutive ervice E for eemplary performance and significant contributions, particularly in the areas of innovation, information and communication technology, social services, administrative reforms, and public policy. ■

12 DBP DEVELOPMENT BANKER | July - December 2019 DBP Expands ATM Services to Underbanked Romblon and Palawan Areas

n support of the National Government’s efforts to promote greater fi nancial Iinclusion, DBP has installed offsite automated teller machines (ATMs) in several underbanked areas namely: the main island of Romblon province and the municipalities of and Narra in Palawan. The DBP ATM installed at the municipal hall of San Agustin, Romblon will serve the banking needs of more than 46,000 residents in Tablas island. The largest of the three islands comprising the province of Romblon, Tablas is composed of nine municipalities including the provincial capital of Odiongan. Aside from serving the underbanked municipality of San Agustin, the new DBP ATM also facilitates access to electronic banking convenience for the nearby unbanked municipalities of Sta. Maria, Alcantara, and Calatrava. The installation and blessing of the ATM was attended by town offi cials led by San Agustin, Romblon municipal mayor Esteban . adrona and DBP offi cials headed by then DBP Romblon branch head Jose Gilbert Rabuel. In Narra and Quezon, Palawan, the inauguration and blessing of the newly- installed ATMs was attended by town offi cials led by uezon mayor oselito O. Ayala and Narra mayor Gerandy B. Danao, and by DBP offi cials headed by Branch Banking Group - Southern Luzon head senior assistant vice president Joel Jalbuena. hile classifi ed as fi rst-class municipalities, both Narra and Quezon, Palawan are underbanked with only two rural banks operating in these areas. The said towns are also more than two hours away from the provincial capital, Puerto Princesa City. The newly-installed ATMs will provide 24/7 electronic banking services to nearly 200,000 residents of the municipalities of Quezon and Narra, Palawan and the neighboring unbanked town of izal. ■

op photo: A man transacts at the AM installed at the an Agustin municipal hall.

Middle photo: hown during the agreement signing between DBP and an Agustin Romblon LG are (from left): Municipal treasurer Gil Gallamoza mayor Esteban Madrona Joel Jalbuena and Jose Gilbert Rabuel of DBP. Standing is San Agustin vice mayor Zaldy Marin.

Bottom photo: arra Palawan mayor Gerandy Danao (fi fth from left) poses with offi cers and staff of DBP headed by senior assistant vice president Joel Jalbuena (sith from left) during the blessing and inauguration of the newly-installed DBP ATM.

DBP DEVELOPMENT BANKER | July - December 2019 13 President Rodrigo R. Duterte (seated th from right) is shown with DBP president and chief eecutive officer Emmanuel G. Herbosa (standing 0th from right) and other BARMM officials during the launching of the second phase of decommissioning of the ML combatants and weapons held recently in . Towards Lasting Peace and Progress in Mindanao by Jayvee P. Cortez

n a speech before the officers and staff “DBP will support the Duterte administration’s of DBP president and CEO Emmanuel G. efforts to resolve the decades-long armed Herbosa shared his eperience in visiting struggle in Mindanao by providing the I a stronghold of the Moro Islamic Liberation financial intervention necessary to hasten the ront (ML). He was then in his third month at the reintegration of the MILF rebels into society, and helm of the state-owned bank when Presidential enable them to lead productive, civilian lives,” Peace Adviser Carlito G. Galvez Jr. invited him he said. to visit the MILF’s Camp Bilal in . Last September, he was again deep in the heart of the region as he attended the launching of the second phase of the Recounting his two-day visit, Herbosa was decommissioning of the MILF combatants and in awe of the warm welcome etended by the weapons held in , Maguindanao. former rebels. “Commander Bravo [real name, The event was attended by President Rodrigo Hadji Abdullah G. Makapaar] and all of his R. Duterte and more than 1,000 former MILF brigade commanders prepared a feast for us. fighters and netted some decommissioned I said: ‘Where do these people get these fresh firearms. fish and everything’ Pinaghandaan kami.” “Today, we mark another important “I said: ‘This is really overwhelming!’ They are milestone in the history of the Bangsamoro our Filipino brothers. We have not done much peace process,” President Duterte said in his for them,” he added. speech. “This is indeed a huge step toward our Since then, Herbosa has vowed for a goal in achieving lasting peace for Mindanao.” strengthened support to the peace process Prior to the event, Herbosa met with in Mindanao. DBP has committed in assisting BARMM chief minister Ahod “Al Haj Murad” the financial reuirements of the Bangsamoro Balawag Ebrahim to discuss DBP’s role in the Autonomous Region in Muslim Mindanao delivery of economic package to the former (BARMM) which covers the provinces of , rebels. e also met with BA finance , Maguindanao, Lanao del Sur, and Tawi- minister Eduard Guerra and Maguindanao Tawi. representative Roonie Sinsuat.

14 DBP DEVELOPMENT BANKER | July - December 2019 1 2

() Photo shows DBP president CEO Emmanuel G. Herbosa (third from left) with (from left) DBP Cotobato branch head Delos Martinez BARMM chief minister Ebrahim DBP first vice president George nocencio DBP senior assistant vice president elito ingzon and bank client Esmael Ebrahim. () DBP president and chief eecutive officer Emmanuel G. Herbosa discusses the banks products and services with BARMM chief minister Ahod Al Ha Murad Balawag Ebrahim.

Under Herbosa's stewardship, DBP President Herbosa Receives DBP has also been actively involved in initiatives that directly contribute to Peace Champion Award the achievement of peace and progress in DBP president and chief eecutive officer the BARMM. The bank recently entered into a Emmanuel G. Herbosa received the Peace Process partnership with the ffice of the Presidential Champion Award from Senator Juan Miguel Adviser on the Peace Process (OPAPP) to Zubiri and Presidential Peace Adviser Carlito G. ensure the proper disbursement and prudent Galvez, Jr. during the closing ceremony of the 2019 management of funds donated to the National Peace Consciousness Month, coinciding with the 26th Founding Anniversary celebration of agency. the Office of the Presidential Adviser on the Peace Under the memorandum of Process (OPPAP). understanding (MOU) with OPAPP, the Herbosa received the accolade in recognition DBP Trust Banking Group (DBP-TBG) would of his commitment and active support in the serve as overall fund manager of OPAPP implementation of peace building programs in resources, which are earmarked for the conflict-affected and conflict-vulnerable areas in the country. various socio-economic programs of the Among the many initiatives being undertaken agency. t will provide fiduciary arrangement by DBP under Herbosa's leadership including support to OPAPP covering disbursement a recent partnership with OPAPP to ensure the management, fund acceptance, and fund proper disbursement and prudent management management. of its funds, and an agreement with the “This partnership is a boon for our indanao Development Authority to epedite the implementation of flagship projects and programs development efforts especially in conict for the region. areas in the country,” Herbosa said. “While The month of September was declared OPAPP is primarily committed to attaining "National Peace Consciousness Month" pursuant to inclusive and sustainable peace, DBP is government's thrust to instill greater consciousness driven by a mandate to bring about inclusive and understanding among the Filipino people on the comprehensive peace process. OPAPP is and sustainable growth.” mandated to be the lead government agency to OPAPP is the lead agency tasked to corrdinate and monitor this observance. “oversee, coordinate, and integrate the implementation of the comprehensive peace process of the National Government.” It was created in , through Eecutive rder (EO) No. 125, which was later amended in 2001 with the signing of EO No. 3. DBP director Maria Lourdes A. Arcenas said that the DBP Board shares the vision of PAPP in enabling conict-affected communities to forge partnerships in reinforcing access to inclusive growth in reducing vulnerabilities and counter violent etremism. “Consistent with the DBP and OPAPP rom left: Presidential Peace Adviser Carlito G. Galvez Jr. DBP president and chief eecutive officer Emmanuel G. Herbosa and senator Juan Miguel ubiri. mandates, this MOU augurs well for sustainable peace and the equitable development of Mindanao,” Arcenas said. Herbosa said that DBP remains “We are absolutely on the same page with committed to supporting programs and OPAPP in making sure that critical resources are projects that will improve the level of social tapped to work for the greater good, under services and infrastructure to help Mindanao the framework of a comprehensive peace achieve its full potential. process, erbosa said. ■

DBP DEVELOPMENT BANKER | July - December 2019 15 Liangan Power Corporation Advocating Energy Sustainability in Mindanao by Edille Anne Z. Reyes

16 DBP DEVELOPMENT BANKER | July - December 2019 n a land of beauty and bounty lies an untapped wonder with abundant natural resources. The coastal municipality of Bacolod, located near Iligan Bay, is one of ’s best kept secrets. While its unspoiled and picturesque beauty is a sight Ito behold for locals and vacationers alike, a start-up company has realized that the municipality can be more than a tourist attraction.

Tucked in Bacolod’s Barangay Pagayawan is the Liangan River, which will soon be home to Liangan Power Corporation’s (LPC) pilot project in renewable energy. LPC was registered with the Securities and Exchange Commission only in 2015. “We started our operations with mining. Now, we have shifted our focus into greener undertakings. ur fi rst renewable energy proect is an . megawatt (MW) hydroelectric power plant in Bacolod,” relates P president and chief eecutive offi cer osue A. Lapitan. “Our goal is to produce a reliable supply of renewable energy in the countryside,” he added. With its advocacy for ecological awareness and sustainable development, LPC’s run-of-river diversion-type power station is set to produce renewable energy for the municipality of Bacolod and eventually the rest of Mindanao. The project is expected to reduce electricity rates in the province, generate additional jobs in the host community, and develop more trade and other economic activities between neighboring municipalities and other provinces. LPC’s power station is scheduled to be fully operational by 2021. e saw potential in anao Del orte, specifi cally in Bacolod, and we believe that this proect can be benefi cial both as a power source, and in terms of job generation for the residents of the municipality and, of course, those in nearby areas,” Lapitan explained further. “The project is a joint venture between LPC and the Province of Lanao del

"Our goal is to produce a reliable supply of renewable energy in the countryside."

osue A. apitan P president and chief eecutive offi cer

The photo features the beautiful Pagayawan Falls in the Municipality of Bacolod.

DBP DEVELOPMENT BANKER | July - December 2019 17 Norte. We also chose to partner with DBP since DBP Introduces we believe in their mandate.” With the support of the local government unit of Lanao Del Norte, LPC was able to secure the first ever oint enture Agreement by a provincial government and the private sector E2SAVE for a hydroelectric power project – a welcome measure in the renewable energy sector. Lanao Del Norte is known to be a major contributor to the overall development of Mindanao. The province hosts two hydropower plants. It was recently reported that peak power demand in Mindanao hit a record , in ay , eceeding the , recorded in December . t has been projected that 3,500 MW of new capacity will be needed between 2021 and 2030 to support the region’s infrastructure and industry development. “We also want to express our appreciation to DBP. The bank has been very supportive of the company. We hope we get to work with DBP again for our future projects,” Lapitan said. LPC is set to begin the development of another, bigger hydro project of around 250 MW in by early next year. Proving its commitment to environmental protection and sustainable development, DBP continues to provide financing as well as technical assistance to projects that are not only ecologically sound but also sustainable. The Liangan River is located in the Province of Lanao del Norte in As a development financial institution, DBP will . continue to play an active role in encouraging clients, like LPC, to include green considerations proects can benefit more of the countryside, in their businesses and thrusts. beyond Bacolod, Lanao Del Norte. With proper Capitalizing on renewable energy means support, green energy endeavors of companies investing in a clean, pristine environment. like LPC can pave the way for sustainable Paving the way for more renewable energy development all over the country. ■

Present during the signing of the loan agreement between DBP and LPC were (from left): DBP senior manager Christian Joseph Presa; LPC legal counsel Atty. John Coluso; DBP senior assistant vice president Raymond Valdez; LPC president and chief eecutive officer Josue A. Lapitan; DBP first vice president Roxann Morales; and LPC operations manager Roberto Neri II.

18 DBP DEVELOPMENT BANKER | July - December 2019 DBP Introduces E2SAVE For Energy Effi ciency

aking heed of the urgent message that energy 3. Recovery and utilization of by-product effi ciency and conservation is everybodys concern gas, waste and pressure and responsibility, DBP has launched the Energy 4. Industrial process improvement and Effi ciency avings inancing Program or EAVE. system optimization T 5. Preparation of Energy Audit/Investment EAE supports epublic Act or the Energy Grade Audit Report for government Effi ciency and onservation Act for institutionalizing energy entities effi ciency and conservation as a national way of life. 6. Installation of solar rooftop/ground Program objectives are: mounted and other renewable energy technologies for own-use or net-metering • To provide credit assistance to public and private Loanable Amount sectors’ energy effi ciency and renewable energy 1. For public institutions: Maximum loan projects for own-use or net metering, to enable them to amount of up to 100% of acceptable harness available new technologies and help contribute total project cost or winning bid price, in the effort of reducing greenhouse gas emissions. whichever is lower • To provide credit assistance to Energy Service 2. For private companies: Maximum loan Companies (ESCOs) or Energy Service Providers (ESPs) amount of up to of validated total to further promote the development of energy project cost effi ciency and renewable energy proects. 3. For ESCO and ESP project: Maximum loan amount of up to of ontract or By promoting new technologies, EAE seeks to improve PO amount, net of margin productivity in public and private institutions to promote Repayment Terms the effi cient and udicious utilization of energy. 1. Short Term – up to one (1) year 2. Long Term – up to 10 years inclusive of up Eligible borrowers to one (1) year grace period on principal 1. Public sector including: Interest Rate • National Government Agencies Based on prevailing rates • Government Owned and Controlled Corporations pecial Program eatures • State Universities and Colleges . Proect fi nancing or collateral based on • Local Government Units project asset may be allowed for clients 2. Private Companies with proven track record, profi table 3. Accredited ESCOs or ESPs operation for the last three years or listed Eligible Loan Purposes companies. 1. Short-term Loan Facility/Credit Line for: 2. Repayment based on savings for energy • ESCO or ESP’s Purchase Orders and Energy Savings effi ciency and renewable energy Performance Contracts (ESPCs) and/or Lease/ projects may be allowed but not to Lease-to-own Contract Receivables. exceed 10 years loan tenor. • Working capital requirements. 3. Loan amortization may be designed • Import letter of credit pro-forma invoice amount of based on of monthly energy machineries and equipment savings/revenues or depending on the 2. Long-term Loan Facility for: client’s preference provided loan tenor Energy effi ciency andor renewable energy for own- will not exceed 10 years. use or net-metering related capital expenditure 4. Omnibus Term Loan Facility (OTLF) projects covering two (2) years pipeline projects • ESCOs or ESPs’ multi-year ESPCs and/ or Lease/ may be allowed for ESCOs or ESPs. Lease-to-own Contract • Conduct of Energy Audit/ Investment Grade Audit To know more about E2Save, please visit Report for public institutions www.dbp.ph or contact the DBP Lending Program Management Group – Program Eligible Projects Development and Management Department 1 . eplacement and installation of highly effi cient at telephone numbers 88189511 local numbers mechanical and electrical equipment 3310, 3311, 3328, and 2356; 8893-3548; and . eplacement and installation of highly effi cient industrial 8893-9745. ■ technologies

DBP DEVELOPMENT BANKER | July - December 2019 19 Shade's Out, theFuture's Bright by Ma. Bernadette D. Zamora

ong before the development of solar energy both for individual consumer use photovoltaic (PV) or solar cells that and power production and distribution. are used to harness energy from the In addition, the National Government has sun, early civilizations had long been always been fully supportive of the development using solar energy in a variety of ways. and optimal use of the country's renewable LFrom agriculture to architecture, solar power energy resources. Green energy is central to generation continuously evolved, making it the Philippines' sustainable energy agenda and one of today’s cheapest sources of power is vital to addressing the challenges of climate or electricity. According to the International change, energy security, and access to energy. Energy Agency, solar energy will someday Realizing this enormous potential paved the surpass other forms of energy sources to way for erasu Energy nc. E hairman ose become the largest power source by 050. P. eviste, r. to oin the roster of industry leaders that are further accelerating the utilization of Strategically located within the earth’s two renewables in the country. tropical zones, the Philippines is bestowed with “As an economist, I like to work on things great amounts of sunlight all year long giving which make good economic sense not just in the country a big advantage in terms of utilizing business but also for the country,” said Leviste. “I believe that we have the moral obligation to take care of our environment and our people and I’d like to believe that I have to take care of those who have less in life.” Leviste, however, knew that with seizing such an impressive opportunity comes the challenge of striking a balance between current operations and innovations. As such, he opted to forge a partnership with the Development Bank of the Philippines (DBP) and Sindicatum Renewable Energy PTE Limited, a Singapore- based company that focuses on developing clean energy projects in South and Southeast Asia. “One of the major challenges in putting up a solar energy proect is the lack of fi nancing and expertise, but we have managed to overcome that because we had the good fortune of working with DBP for this undertaking,” shared Sindicatum country manager Michael Yamazoe. Staying true to its mission of spurring economic growth while promoting environmental protection, DBP recently sealed a P1.65-billion loan agreement with TEI to partially "I like to work on things fi nance the construction and development of which make good economic a 40 Megawatt (MWac) Solar Power Plant in sense not just in business but Concepcion, . “Our partnership with TEI solidifi es our commitment to ourney with our also for the country." clients towards a green and sustainable path,” said DBP president and chief eecutive offi cer ose P. eviste, r. Emmanuel G. Herbosa. Sindicatum President TEI chairman Robert Eugene Driscoll adds that through this partnership, they likewise hope to fulfi ll their

20 DBP DEVELOPMENT BANKER | July - December 2019 DBP president and chief eecutive officer Emmanuel G. Herbosa and E chairman Jose P. Leviste Jr. (seated third and fourth from right respectively) and indicatum president Robert Eugene Driscoll and country manager Michael amazoe (seated second and first from right respectively) seal het P.5-bilion loan agreement which will help finance the construction of a solar power plant in Concepcion arlac. hey are oined by DBP Middle Market Group head Roann D. Morales and Middle Market unit head Jeanne Adamos (seated second and first from left respectively). itnessing the MOA signing are officials from DBP and E.

mandate and communicate their commitment series of solar power projects operated by TEI to sustainable development even as they and Sindicatum. It will exclusively supply and devote themselves towards improving the lives sell its electrical outputs to SOLVRE, Inc., a of ordinary citizens with this project. wholly-owned subsidiary and marketing arm for As a CO²-free power source, the contestable customers of Meralco Powergen environmental impact of solar power is Corporation (MGen). These contestable significantly smaller compared to other power customers who have the power to purchase generation methods. This is why the conversion electricity directly from a retail electricity supplier of energy from sunlight into electricity is forecast such as E, nc. will in turn benefit from this to play an important role in the global energy clean energy source. future. With the end goal of generating a “Although we don’t have a hundred percent greater percentage of the country’s power control of the challenges ahead of us, we are from renewables, the TEI and Sindicatum team confident as DBP has always been enormously created technical models that will simulate helpful in addressing our needs. As we devote the amount of energy that can be harnessed our resources towards the development of this from the sun across one year to ensure project high-impact project, rest assured that we will profitability and sustainability. continue to build more projects dedicated The solar plant that will soon operate in to minimize and even mitigate the negative Concepcion, Tarlac is the second among a impacts of climate change, eviste ended. ■

Photos show indicatum country manager Michael amazoe (left photo) and indicatum president Robert Eugene Driscoll (right photo) during their interviews at the DBP head office in Makati City.

DBP DEVELOPMENT BANKER | July - December 2019 21 Revolutionizing Palawan's Energy Future by Ma. Bernadette D. amora

22 DBP DEVELOPMENT BANKER | July - December 2019 alawan is the biggest use of generators spend a costly P3,000.00 province in the Philippines per month just to power-up their houses from 6 p.m. to 10 p.m. in terms of total land area. Maria Cayanan Fiechter, president Its relatively pristine waters, of Cabayugan’s Tourism Establishments intact forest ecosystems, and Association, also shared that the barangay is falling behind in terms of earnings from the Pbreath-taking landscapes make tourism industry due to its unattractiveness it one of the most sought-after owing to unstable electricity supply. vacation places in the country. This critical concern paved the way for the formation of the Sabang Renewable Energy Corporation (SREC), a consortium Despite its natural wonders, Palawan is composed of WEnergy Global Pte. Ltd.; faced with myriad socioeconomic challenges Vivant Energy Corp.; and Gigawatt Power, including poverty and environmental Inc. (GPI). concerns. Pervasive issues include unstable and unregulated electricity sources particularly REC: outheast Asias irst Microgrid Proect in Barangay abayugan, where the Puerto Conceptualized as early as 2012, SREC Princesa Underground River, a UNESCO World aims to immediately resolve climate change Heritage site, can be found. issues within its identifi ed area of operations In an article published in Rappler dated April through alternative power sources , abayugan’s Barangay aptain amil that have minimal environmental Gonzales shared that residents who rely on the impact.

DBP DEVELOPMENT BANKER | July - December 2019 23 distribution network that includes 210 electrical posts built throughout the area shall signifi cantly "Our mission is to electrify increase the level of electrifi cation to . the Cabayugan community, This hybrid power infrastructure also went through a thorough assessment given its delicate clean and quick." location. onstruction was heavily in uenced by the conditions of the area which is classifi ed Atem Ramsundersingh as a nature reserve to protect the catchment SREC director area of the Puerto Princesa Underground River, tagged as one of the New Seven Wonders of Nature for being one of the longest underground rivers in the world. “Our mission is to electrify the Cabayugan

community, cleanly and quickly,” said Atem Pioneering Renewable Energy se Ramsundersingh, SREC director and WEnergy hile E met with other fi nancial Global Pte. Ltd. president. institutions to discuss the future of micro-grids in E’s fi rst of its kind hybrid power proect centralized electrifi cation, DBP pushed its own uses solar energy, diesel operators, and 14 limits in considering our loan proposal,” said kilometers of smart grid or distribution network. GPI president Walden H. Tantuico. “Those were his is the fi rst hybrid-powered microgrid in the days when the Philippines was still new in the Philippines approved by the Department renewables and harnessing new technologies of Energy DoE and the Energy egulatory was still very expensive.” ommission E. t is also the fi rst such E then came to DBP in early for microgrid in Southeast Asia. fi nancial support for its pioneering proect. A microgrid is a local energy grid with control he partnership with DBP was immediately capability, enabling it to disconnect from the formalized with the signing of a P300-million term traditional grid and operate autonomously. It loan agreement to partially fi nance construction generally operates while connected to the grid; of SREC’s hybrid power plant. however, it can also break off and operate on “More than spurring economic growth, we at its own using local energy generation in times of DBP hope to contribute also towards improving crisis like storms or power outages. the lives of more Palaweños. Through this The microgrid technology may be powered partnership, we are able to fulfi ll our mandate by distributed generators, batteries, and/or of accelerating sustainable economic growth renewable resources like solar panels. In the while placing the well-being of the Filipino case of SREC, its power project will run through a people as priority, said DBP president and chief combination of solar (60%) and diesel-powered eecutive offi cer Emmanuel . erbosa. (40%) generators that are projected to soon E’s hybrid power plant was offi cially provide 24/7 electricity, at reasonable and inaugurated on November 7, 2019, with Energy affordable cost, to the residents of Barangay Secretary Alfonso G. Cusi, Chairperson of Senate Cabayugan. “We’ve designed the microgrid to optimize the use of intelligent battery energy storage based on local electricity loads and needs. REC fi eld engineers operate on-site equipment Basically, the battery will be used to store energy of the newly opened hybrid plants. and release it only when supply and demand require balancing so as to make up for shortfalls in PV generation,” Ramsundersingh said in an interview published in the February 2019 issue of Solar Magazine. The solar component of the hybrid power

project will help reduce carbon dioxide (CO2) emissions in the atmosphere that are caused by conventional power plants, and will likewise contribute to global efforts towards reducing greenhouse gas emissions in the atmosphere. SREC is located within the same community as the Puerto Princesa Subterranean National Park. The area is heavily dependent on the electricity generated by costly diesel generators. ith a current electrifi cation level of only , as well as an unregulated system, many remote rural areas still have no power. With SREC’s hybrid power project, a

24 DBP DEVELOPMENT BANKER | July - December 2019 eslted in abang Puerto Princesa City in Palawan is the countrys first hybrid-powered microgrid plant.

Committee on Energy Sherwin Ting Gatchalian, and Puerto Princesa ayor ucilo . Bayron in attendance. E continues to be grateful to DBP for the bank’s committed support in helping the company fulfill its mission of providing reliable power supply to underserved communities in Palawan. DBP’s involvement has been one of the key factors in our successful proect implementation. ithout DBP’s funding support, we would have never been able to implement the proect on-time, ended antuico. ■ alden H. antuico President and chief eecutive officer Gigawatt Power nc. (GP)

"Through this partnership, we are able to fulfill our mandate of accelerating sustainable economic growth while placing the well-being of the Filipino people as priority."

Emmanuel G. Herbosa DBP president chief eecutive officer

DBP DEVELOPMENT BANKER | July - December 2019 25 The 10 megawatt power plant of Supreme Power Corporation in Koronadal City.

26 DBP DEVELOPMENT BANKER | July - December 2019 Supreme Power Corporation Powering Up Community Development by Alni Dorothy Alfa R. Emphasis

ust around a 30-minute ride from the city of Koronadal, a DBP-assisted 11.9 MW packaged power plant project Jof Supreme Power Corporation (SPC) can be found operating right at Purok arfi n, Barangay Paraiso.

SPC is owned by siblings Juanita Siy, company president; Romeo Siy, treasurer; Jose Siy Cha, corporate under the provisions of the National secretary; and Manuel Siycha, director. Electrifi cation Administration Act A A member of the Siycha Group of Companies, 6038) as amended by Presidential SPC initiated the establishment of this power project to Decree 269. augment the growing energy requirements of industries hile P is the fi rst power proect and residential consumers in South , thus of the Siycha Group of Companies, it is, helping to boost the power supply for over half of the likewise, the roup’s fi rst energy proect province. with DBP. When the Group started with “With the frequent power shortages and a rice milling business in 1986, it was DBP brownouts that we experienced here, that provided them with the fi nancing we decided to step in and propose a to purchase a foreclosed rice mill. The power plant project to DBP that will bank has also provided funding support not only redound to benefi ts for our for the Group’s poultry farms, trucking business but also address the needs and hauling business, and motorcycle of the community,” Juanita Siy fi nancing proect. said. hile this plant is our fi rst proect for In the same spirit of community power, we already have a long-standing development, SPC has built roads relationship with DBP as a Group. We and provided water supply and a have been long-term development chapel in a nearby barangay of the partners,” Juanita Siy adds. “In the case power plant. of P, DBP fi nanced this whole proect. Since the project’s completion in This means, they really trusted us.” , P has signifi cantly For the power plant project’s initial contributed towards helping to capital requirements, DBP approved a maintain suffi cient power supply for 10-year term loan of P700-million to SPC electricity consumers in the area. on May 6, 2015. Seven months later, SPC The power plant directly was granted another fi ve-year term loan streams its generated power to of P140-million for permanent working I Electric capital. Cooperative, or SOCOTECO-I, “DBP has been our long-term partner which services Koronadal in our development projects and City, eight towns in initiatives and we would like to continue South Cotabato, and this business relationship with the bank for Lutayan town in Sultan life,” she added. Kudarat. With DBP as its development SPC is among the fi nancing partner, P is now currently seven power providers working on the establishment of another of SOCOTECO I, a 11MW power plant for the Davao non-stock, non-profi t Oriental Electric Cooperative, Inc. in Mati membership electric City and soon, a 10MW power plant for cooperative created the arlac Electric ooperative, nc. ■

DBP DEVELOPMENT BANKER | July - December 2019 27 28 DBP DEVELOPMENT BANKER | July - December 2019 DBP's Maiden ASEAN Sustainability Bonds Raised P18.125-B on PDEx

he Development Bank of the raised, more than three times the original issue Philippines listed P18.125-billion in of P5-billion, is a very positive response to DBP’s the Philippine Dealing and Exchange maiden ASEAN sustainability bond issuance, as Corporation (PDEx) in its maiden well as a good indicator of its clients’ trust and T confidence in the bank, said Philippine Dealing issuance of 2-year ASEAN Sustainability & Exchange Corp. (PDEx) president and COO Bonds due 2021, paying 4.25% p.a. in Antonino Nakpil. quarterly coupons. DBP president and chief eecutive officer Emmanuel Herbosa further underscored the significance of the initiative his is a historic “We are pleased to welcome the milestone for DBP as this is the first-ever listing Development Bank of the Philippines (DBP) for of the bank in the PDEx. With the listing of the its first-ever listing for this P.-billion, -year DBP ASEAN Sustainability Bonds, our bank has bond, and delighted to highlight that this bond made another significant stride towards the emanates from DBP’s ASEAN Sustainability Bond achievement of our mandate which is to be Program, which we understand is a first of its a catalyst of development for the Filipinos, to own as a Program aiming to provide financing support and spearhead projects in line with the andor refinancing of specified green, social, sustainable development goals of the country." or sustainability projects of up to P50-billion. DBP chairman Alberto Romulo also And we note that even this late in the year the expressed gratitude on behalf of the DBP, to investor appetite was not hampered to take all parties involved in making the transaction in this new issue. The amount of P18.125-billion possible. ■

n the photo from left are: China Banking Corporation chief finance officer Patrick Cheng China Banking Capital Corporation president Ryan Martin apia tandard Chartered chief eecutive officer Lynette Ortiz DBP chairman Alberto Romulo DBP president and CEO Emmanuel Herbosa PD Group president Ma. heresa Ravalo PDE president and chief operating officer Antonino akpil LBP - rust Banking Group assistant icev president Analiza Vasco and Amalgamated nvestment Bancorporation eecutive vice president and CO ervando Alvarez Jr.

DBP DEVELOPMENT BANKER | July - December 2019 29 A Report on DBP's 3rd Quarter Performance

Ecerpts from the uarterly performance report presented to DBP offi cers and employees by President and hief Eecutive ffi cer Emmanuel . erbosa 18 November 2019 | DBP Bulwagan ng Diwang Pilipino

eron akong kwento. Marami. But this story also puts the spotlight on DBP, because it I was recently conferred the was DBP that paved the way for Peace Process Champion me to advance my peace and economic inclusion advocacy award by the Office of especially in Mindanao, the land the Presidential Adviser on of promise. his story continues to the Peace Process PAPP. t was a unfold because of the work that M each of you is tirelessly putting in recognition of my commitment and for the bank. active support in the implementation of peace-building programs.

30 DBP DEVELOPMENT BANKER | July - December 2019 Institutional awards Tayo ang lumikha ng Let me also share with you brief stories kwentong ito -- kwento of our other awards, this time, institutional ng kasipagan, ng recognitions which matter the most to " dedikasyon, at malasakit me. DBP won three awards from the sa bayan." nvestment ouse Association of the Philippines AP, for our active participation on critical Emmanuel . erbosa projects on infrastructure, renewable energy and DBP president and CEO the latest issuance of retail treasury bonds of the ational overnment. AP cited the P-billion ebu ity-ordova toll bridge proect as Best Deal of the ear, while the st B issuance and the acuisition of a solar portfolio by iticore Power nc. were adjudged as Best Fixed Income and Best Advisory in the Small - id ap ategory Deals of . he transaction with ebu ordova ink Epressway Corporation is projected to serve at least 40,000 vehicles daily, ease congestion along the SRP – the South Reclamation ighway in ebu -- and provide additional access to the actan ebu nternational Airport. he st B tranche, on the other hand, where DBP acted as joint issue manager, raised more than P121- sustainable approach to employee billion, with DBP among the top three selling agents. engagement and well-being. e e achieved close to P billion P. billion in sales, were also cited for promoting diversity which represented of the total issue size. in the workplace, while sustaining non- he transaction with iticore Power, meantime, discrimination and an equal opportunity would allow it to increase its total renewable energy policy in the recruitment and selection of capacity from the present 163 megawatts to 1,000 employees. megawatts. his is a big boost towards increasing the So I congratulate each of you for contribution of green energy in the country’s total writing these great stories for DBP. his is electricity-generating capacity. what lat’s all about. Tayo ang lumikha DBP was also conferred the olden Dagitab ng kwentong ito -- kwento ng kasipagan, award by the ational Electrifi cation Administration ng dedikasyon, at malasakit sa bayan. EA for our fi nancing program -- the inancing tilities for ustainable Energy Development or ED -- that Branch Banking supports the expansion and development of electric he Branch Banking ector remains cooperatives, thereby strengthening government’s rural aggressive in developing products and electrifi cation program. services that’s meaningful because it And just recently -- and I think the best of them -- the offers convenience, accessibility, and bank was hailed by the Sustainability Business Awards value to our clients. as the company with the Best orkforce, citing our A few weeks ago, I was in Isabela – among the Ibanags -- with Senator Cynthia Villar, Agriculture Secretary William Dar, and of course Isabela overnor odolfo Albano . e issued DBP Payaya A identifi cation cards to rice and tobacco farmers who belong to the Nagkaisang Magsasaka ng Isabela Agricultural ooperative or A. hrough these A cards, the farmers will be able to receive their proceeds of the excise taxes from locally-manufactured cigarettes, barley, and native tobacco. We started with 25,000 marginalized farmers – those who till less than 2,000 hectares -- because how can you

Photo features DBP president Herbosa (right) with the rice and tobacco farmers receiving produce rice effectively if you don’t have their DBP PayMaya AM identifi cation cards. scale?

DBP DEVELOPMENT BANKER | July - December 2019 31 DBP has partnered with schools for the RE program a CR initiative for education.

It’s a noteworthy project of which I am administration’s efforts to resolve the decades- excited about because most of us know the long armed struggle in Mindanao by providing predicament that our farmers are facing with the fi nancial intervention necessary to hasten the ice arrifi cation aw in effect. t may not be the reintegration of the MILF rebels into society a magic wand that will solve all their woes; but I and enable them to lead productive, civilian hope and pray that it can be at least something lives. to ease their burden. I also attended the launching of the A few months back, I signed a memorandum second phase of the decommissioning of the of agreement with the city government of Moro Islamic Liberation Front combatants and Parañaque and the Department of Education weapons held in Sultan Kudarat, Maguindanao for a student assistance program that will benefi t with President odrigo Duterte in attendance. over , ualifi ed public school students. ore than , former fi ghters nder the agreement, DBP will facilitate attended the rites -- which netted some 940 the electronic disbursement of allowances decommissioned fi rearms including the barett, and subsidies through the students’ DBP that sophisticated sniper weapon, savings account, which comes with a DBP EMV and other really high-powered weaponry. Debit Card that may be used at any DBP or his was a follow-up activity to my visit to Bancnet-affi liated A. Approved student- Camp Bilal in Munai, Lanao del Norte benefi ciaries shall be ualifi ed to open a DBP under the command of adi Abdullah savings account without the initial deposit and . akapaar, more popularly known as maintaining balance requirements, with interest ommander Bravo. to be earned upon reaching a deposit balance hese are inspiring stories after all. e of P.. Yun ang minimum maintaining natin. are taking concrete steps towards economic ow have a more interesting kwento. ast inclusion, hindi lang puro salita, kundi may September 6 to 7, I was given the opportunity katapat na gawa. to present the bank’s products and services Year on year, our CASA to top BA offi cials led by interim chief (Current Account-Savings minister Al a urad Ebrahim in aguindanao. Account ADB grew ., I told them that DBP will support the Duterte while total deposit ADB

32 DBP DEVELOPMENT BANKER | July - December 2019 improved by .. But the maor metric program. nder a memorandum of agreement, there is AA ADB because it re ects customer DBP and its partner schools will collaborate in service, uality, and all of that. promoting the welfare, through education, From end-2018 levels, CASA ADB increased of underprivileged students. As we all know, by . term deposits grew . and total DBP RISE is the bank’s primary CSR initiative for deposit improvement, .. education that aims to help mold the Filipino In terms of expanding our electronic youth into responsible, empowered, productive, network this 2019, our Branch Banking Sector and competitive global citizens. team has so far been able to deploy As in several underbanked and unserved locations in Development lending attaran in agayan, Pantabangan in ueva Emmar iglao has been working as a P Ecija, and Narra and Quezon municipalities in driver for more than eight years. n the past, he Palawan. his is important for our economic had to stay on the road till late at night so as to inclusion initiatives. earn enough for his family’s needs. But today, For example, Narra and Quezon in Palawan, as the driver of a modernized P, he now works while classifi ed as fi rst-class municipalities, are only an eight-hour shift, gets to go home early to actually underbanked with only two rural banks spend more time with family, and earns P700 a operating in the area. he installation of DBP day. As provided electronic banking access to the But there’s more. f Emmar spends more 200,000 residents of Narra and Quezon, and the than eight hours on the road, he is paid neighboring unbanked town of izal. overtime. And for the fi rst time in his life, Emmar e have added additional As, is also entitled to regular employment benefi ts, bringing our total A network to as of end- eptember.

Engaging DBP’s stakeholders Extending our concern towards our external stakeholders, the Bank has given our clients, both existing and potential, another platform to learn about DBP and its products and services, as well as to convey their feedback. his social media channel now allows our Bank to be on the same page as our clients, and ensures the responsiveness of our products and services. We recently tapped the support of 14 partner schools under the DBP Resources for Inclusive and Sustainable Education (DBP RISE)

DBP PAADA benefi ts not only the commuters but also the participating drivers and passenger assistance offi cers through regular employment.

DBPDBP DEVELOPMENT DEVELOPMENT BANKER BANKER | |July July - December- December 2019 2019 3333 which are certainly important to a family man like him. Emmar is one of the growing number of driver-benefi ciaries of the DBP PAADA. Emmar’s employer, the aguig ransport Service Cooperative, has acquired modern Ps through DBP’s funding assistance. he PAADA program also benefi ts the passenger assistance offi cers, or PAs, and not ust the drivers. hese PAs -- who are in charge of collecting passenger fares and notifying the driver when passengers need to get off -- receive a daily wage of P. o these guys become regular employees and thus, benefi t from the , Pag-ibig and all of these, so we’re getting less contractuals and less kaskaseros because nagba-boundary. But nobody wins against boundary these days because of the traffi c. o this is another advocacy that’s well worth for us to proceed on. It is very clear that the stories that DBP writes are anchored on our passionate pursuit of economic inclusion. n the country’s journey towards growth, no one should be left behind. Everyone should contribute to, and benefi t from, the fruits of development. his is the foundation of every fi nancing program that we implement, and let’s be proud that DBP continues to perform considerably well in its lending operations. nder its development lending operations, DBP continued its impressive performance. otal new, new and that are linked in a supply or value chain of a additional loan approvals amounted to specifi c brand of product or group of products P.-billion. as the business is defi ned. oan portfolio reached P.-billion, which is already 103% of the annual target Innovations in internal audit of P.-billion. DBP was also recently recognized for its In the third quarter, the Development innovations in internal auditing in the Lending Sector introduced a new lending sector particularly the Adoption of -ier isk- program, the Distributor and Dealers Based nternal Audit ating ystem. DBP’s inancing Program. his facility supports the nternal Audit roup A received the award development and promotion of mSMEs in during the Association of overnment nternal areas with distinct membership of sellers/ Auditors Search for IAS with best practices and suppliers, distributors/ dealers, and retailers innovations in internal auditing.

34 DBP DEVELOPMENT BANKER | July - December 2019 to P.-billion. Also because of the capital, or the dividend reprieve. DBP’s capital adequacy ratio stood at . for the period ending eptember . his fi gure is higher than the industry average of .. o we have a buffer for more credit. he bank’s net income for the third uarter reached P.-billion. his fi gure is down slightly, by about . percent, from the P.-billion recorded during the same period last year, due mainly to higher provisions for impairments losses and taxes and operating epenses. But let’s not be discouraged by this minor setback. remain confi dent that we can achieve our fi nancial DBP nternal Audit Group head senior vice president Ryan R. Gabinete (third from right) targets for this year. e have already receives the award for the banks innovations in internal auditing. Also in photo are (from left): AGA eecutive vice president Dinah E. Pichay AGA president Josie Jane C. Ablin achieved 75% of our net income target DBP vice president Ardy D. Gomez DBP assistant vice president Lorna L. Bundang and AGA director Hideliz Marie A. Laranang. for 2019 due to a realization rate of 103% on our net income target for the third uarter. Financial Performance May kwento at may kwenta, ow here’s a consolidation of all our stories. di ba? Yan ang metric natin dito. Ito na ang kwento nating lahat. Ipagpapatuloy natin ang paggawa ng n summary, our total deposits grew by . mga magagandang kwento, para sa percent for the fi rst nine months of the year, DBP, para sa bayan. to P-billion from the P.-billion reported But let us not stop there, at making in the same period last year, backed by stories. e must spread the good aggressive deposit generation activities. news. As they say, great stories ross income reached P.-billion in the happen to those who can tell them. third uarter of the year, up by . from the DBP has always been known as a good P.-billion reported during the same period creator and teller of the development last year. history of our country. As long as we otal assets showed a . growth for the continue working together, we can third uarter of the year, to P.-billion from weave beautiful stories borne of our the P.-billion registered for the same period hard work, dedication, and passion. in , while our net worth rose by . hank you. ■

P.-B P.-B Gross ncome (rd tr.) up by . from last year

DBPs et ncome (rd tr.)

DBP DEVELOPMENT BANKER | July - December 2019 35 The NCC Athletic Stadium features a 20-thousand seating capacity Olympic- quality track oval fields and nets.

The New Clark City Athletic Stadium in Capas, Tarlac

36 DBP DEVELOPMENT BANKER | July - December 2019 Building Roads, Redefining Progress by Ma. Bernadette D. amora

he Philippines is endowed with With the aim of addressing these development gaps, the great natural and human resources Duterte administration launched that provide countless potential the “Build, Build, Build” program in 2017, along with the designation for economic development and of the Development Bank of the poverty reduction. Despite this, Philippines (DBP) as the country’s overall development outcomes over premier infrastructure Bank. T "Build, Build, Build" aims to usher the last decades have fallen short of this in a “golden age of infrastructure” potential. Take, for example, the worsening in the country by prioritizing the construction of high-impact traffic situation in etro anila that has led projects including high-capacity to the Philippines' ranking as the third worst commuter service railways, a in Southeast Asia in this area, according subway, more ood control and management facilities, roads and to a 2017 study conducted by the Boston highways, airports, and new cities. Consulting Group.

DBP DEVELOPMENT BANKER | July - December 2019 37 New Clark City

Located in Central Luzon, New Clark City (NCC) is at a con uence of industry and agriculture with eisting infrastructure and connectivity to Manila and the rest of the Philippines. ith a favorable location in the region and appropriate distance from Metro Manila, CC is poised to become the net big metropolis.

Merging with nature, the heart of New Clark City is proposed to be a central park with a business district wrapped around it that has magnifi cent views of the hills. erved by public transport housing and industries form the other layers. A network of open spaces forms the bond between diverse mied use districts.

A destination where nature, lifestyle and business, education, and industry converge into a global city based on principles of sustainability. (ource: https:bcda.gov.phproectsnew-clark-city)

with traffi c already causing disruptions in government operations, prompting then Prime inister ahathir bin ohamad to propose the creation of a new city as a The New Clark City houses the National Government Administrative Center (GAC) featuring disaster resilient back-up offi ces of various solution. government agencies. ew lark ity fulfi ls the vision of a modern Philippines. It is a model for how urban communities should be – green, Since then, DBP has endeavored to remain at sustainable, with a regard for public spaces the forefront of providing more critical support to and integrated transport systems. infrastructure initiatives on a countrywide scale. DBP and MD: Partners for growth Learning from Example - The New Clark City n partnership with BDA, D Philippines A planned community under development in is working round the clock to fulfi ll the Capas, Tarlac -- the New Clark City (NCC) -- is one administration’s marching orders to expedite of the administration’s legacy projects. Since its the development of ew lark ity. D is inception, the complex has opened up investment a multinational company and infrastructure opportunities as it is already seen to become a developer based in alaysia with an active modern Filipino metropolis in the region. With an area presence in 15 countries across Asia, Europe of approximately 9,450 hectares, the city is expected and the iddle East. ts fi rst proect in the to decongest etro anila through ob opportunities Philippines was the construction, operation for over 1.2 million Filipinos. and maintenance of the 36-kilometer hielded by the ierra adre and ambales South Luzon Expressway (SLEX) which was mountain ranges, NCC lies above sea levels and successfully completed in 2010. is naturally designed to withstand natural disasters “For many, building a city in the and calamities. It is also seen to be the most hinterland was ambitious. But we continue inclusive and sustainable city in the country to date, to persevere as we are one with the creating opportunities especially for the indigenous government in its rally to build sustainable peoples and farmers who may be affected by the and resilient cities for every Filipino,” said development of roads and infrastructure. Engr. saac . David, hairperson of D Done in phases, the entire development is being Philippines. managed by the Bases Conversion Development DBP and D formalized their Authority (BCDA). It is patterned after Putrajaya, the development partnership for NCC with the federal administrative capital of alaysia. imilar signing of a P9.5-billion loan agreement to what etro anila faces today, uala umpur’s to partially fi nance the construction and traffi c congestion was also an alarming concern then, development of the National Government

38 DBP DEVELOPMENT BANKER | July - December 2019 Administrative Center’s Phase 1A. The amount represents 75% of the P13-billion total budget for said phase. “As the country’s infrastructure bank, it is our role to not ust fi nance viable proects but For many, building a city in the to actually contribute to the greater effort hinterland was ambitious. But we of building a sustainable nation. We build continue to persevere as we are one relationships with our clients and share the " with the government in its rally to build same mission of addressing major obstacles to sustainable and resilient cities for economic growth,” DBP president and CEO Emmanuel G. Herbosa said. every Filipino.” Almost completed within only 18 months since it broke ground in January 2018, Phase Engineer Isaac S. David 1A is now 99% complete. The NGAC will hairperson of D Philippines house the disaster-resilient back-up offi ces of various government agencies. A world-class sports facility was also showcased during the country’s hosting of the 2019 Southeast Asian (SEA) Games. The facility includes an aquatic center, a village for athletes, and other support facilities. The masterplan for the NCC project reveals that the new city will be connected to the Subic- Clark-Tarlac Expressway and the Clark International Airport via access roads. The second phase of the proect is set to commence within the fi rst uarter of . eanwhile, a railway network stretching from Calamba, Laguna to NCC is reported to be operational by 2025. D Philippines is thankful for the developmental partnership with DBP that has helped euip it to fulfi ll its obligations with the NCC. “By providing much- needed fi nancing, DBP lives up to its name as the country’s premiere development bank. We are just on the proect’s fi rst phase, and we are very grateful for DBP’s support as we commence construction of the other phases of the proect, David ends. ■

Of the 9. hectare land only .5 hectares will be developed for mied-used infrastructure to preserve green open spaces all over the ew Clark City.

DBP DEVELOPMENT BANKER | July - December 2019 39 Apo Agua Infrastructure, Inc. Delivering Safe and Sustainable Water by Alni Dorothy Alfa R. Emphasis

BP lived true to its mandate as the premier infrastructure bank of the country spurring development initiatives nationwide when it provided long-term fi nancial support to infrastructure developers and key players like Apo Agua nfrastructure even amidst domestic fi nancial challenges. DBPs continued funding support to infrastructure proects not ust capacitate its clients but also create far- Dreaching socioeconomic impact to benefi ciary communities.

Apo Agua Infrastructura, Inc. (Apo Agua), DCWD has teamed-up with Apo Agua in a joint venture company between Aboitiz harnessing the Tamugan River to serve as an Equity Ventures and J.V. Angeles Construction alternative source of water while allowing the Corporation, was formed in 2014 to build a bulk aquifers to rest and regenerate over the next water supply project that will provide sustainable decades. This will also shift the dependence from water in the third largest city of the Philippines, groundwater wells as a source of water to the Davao City. more sustainable surface water from the river. pon its completion in the fi rst half of , At the same time, DCWD and Apo Agua the project is expected to supply water for 120 endeavored to create a forested environment barangays in the city, signifi cantly epanding its within the Panigan-Tamugan Watershed to reach from the current 112 barangays already keep the water pristine and at its best quality being supplied. The project was proposed by Apo possible. Towards this end, Apo Agua recently Agua to the Davao City Water District (DCWD) to signed a partnership agreement with DCWD put forward “a sustainable bulk water solution for through their Adopt-A-Site Program to plant trees the city of Davao,” Apo Agua President Roman V. on a 50-hectare land as part of this watershed Azanza III explains. rehabilitation and reforestation program. While the aquifers in Davao City still hold “Together with the local council, we’re helping abundant water supply, there are certain areas in them to put in the right policies, helping them the city without access to ample supply of clean develop the right studies to make sure that the water. The Davao City Bulk Water Supply Project watershed, the source of our water, will remain is a proactive step towards avoiding the impacts pristine not just for today’s generation but for the brought about by groundwater over-extraction next generations to come,” Azanza explains. such as drying up of wells, land subsidence and salt-water intrusion.

40 DBP DEVELOPMENT BANKER | July - December 2019 Private Bulk Water Projects “DBP, along with other core member banks, Apo Agua is building one of the country’s was able to provide fi nancing in the midst of the largest private bulk water supply facilities that will Philippines’ high in ation rate last year. hat shows supply over 300 million liters per day of safe and commitment, that shows partnership,” Azanza sustainable water to DCWD for the people of reiterates. “That set the benchmark for projects Davao City. of this nature. And that shows the real clear view The project is designed to capture and of DBP to focus on projects that matter for the source surface water from the Tamugan River development of the Philippines.” and divert it into a hydro-electric plant to In The Asset Asian Awards 2019, DBP bagged generate 2.5 megawatts of hydroelectric power. the tility Proect of the ear award for fi nancing The same electricity will power up the water this fi rst large-scale bulk water supply proect in treatment facility, after which the treated water Mindanao by Apo Agua designed to augment the will be delivered to DCWD’s eight water systems, current water supply mainly sourced from deep through 60-km pipelines, ready for distribution to wells. Davaoe os. DBP approved this project under its Water With its use of renewable energy, the project for Every Resident (WATER) program, its umbrella runs in both self-suffi cient and environmentally- facility for supporting water supply projects. The sound manner. WATER program is anchored on the thrust of the ational overnment as defi ned under the Employment Generation and Community Philippine Water Supply Sector Roadmap which Engagement aims, among others, to ensure adequate long-term As the shed is situated 60 kilometers away from availability of and accessibility to potable water for the water systems of DCWD, a major portion of the all Filipinos. project involves the construction of pipelines, thus To date, DBP continues to work closely with opening up work and employment opportunities Apo Agua on the project’s construction phase for the residents of nearby barangays. until its target completion. In partnership with Apo According to Azanza, about 400 people are Agua, the bank intends to ensure the project’s already working on the project, and more than compliance with labor standards, occupational a thousand more will be hired as the project health and safety standards, ethical practices, completes its three-year construction phase among others are being observed. including engineering design works and the In this venture and others, and working installation of huge diameter pipelines throughout alongside valued development partners, DBP the city. clearly shows its unwavering commitment to Also, Apo Agua continues to invest public service by continuing to provide funding tremendous time and resources in serving the support to developmental projects which don’t communities in the areas directly affected by the just capacitate and advance businesses but construction and pipe laying works. These services also provide sustainable solutions to community range from medical missions to educational problems such as the water problem in Davao programs and scholarship funding. Residents of City. ■ affected communities benefi t from regular check- ups, among others.

Business Relationship with DBP “It all begins with the long-standing partnership we have with the DBP. As for the Aboitiz group, the relationship with the DBP has been well-over decades long. DBP has come in as a major lender across many of our power projects through the years,” Azanzo added. o fi nance the construction and operations phases of the Davao ity Bulk Water Supply Project of Davao City Water District, Apo Agua signed a P9-billion Omnibus Notes Facility and Security Agreement with a consortium of lender-banks that included DBP, BPI, China Bank, and Bank of Commerce.

When it was very diffi cult for most banks to give long-term fi nancing due to major fi nancial challenges the Philippine markets experienced last year" (2018), DBP was able to provide us with nine billion pesos worth of fi nancing, along with other lenders, for our project.”

– Apo Agua President Roman V. Azanza III

DBP DEVELOPMENT BANKER | July - December 2019 41 Beyond Farming: Nueva Ecija Paves the Way for Progress in the North by Edille Anne Z. Reyes

42 DBP DEVELOPMENT BANKER | July - December 2019 DBP has been actively supporting the provincial government of Nueva Ecija in its various developmental efforts, including the construction of an onion cold storage plant.

s the country continues to Long-standing development partnership pursue inclusive growth, local DBP and the provincial government of Nueva Ecija are long-time allies with a government units nationwide relationship that goes all the way back to are pushed to pursue the 1970s. DBP has constantly assisted the innovative and sustainable provincial government in its various initiatives actionsA for the welfare of the public. One not only for the infrastructure sector but also for local government that continues to prosper agriculture, education, and eco-tourism. In 2018, the provincial government in laying a strong foundation for equitable reinforced its development linkage with DBP access to growth opportunities is the for key infrastructure development initiatives. provincial government of Nueva Ecija. But DBP stepped in with financial assistance for how is the Rice Granary of the Philippines roads, school buildings, and other infrastructure coping with the growing economic projects; and since then has been a constant ally in sustaining the province’s economic landscape in Luzon? centers. The partnership resulted in the opening of new roads, connecting provincial ueva Ecia is a first-class province with a thoroughfares to the main expressways. population of more than 2.15 million people. DBP granted an omnibus loan to the The province is located some 117 kilometers of provincial government for boosting trade Manila, and is composed of 27 municipalities and facilitating the movement of goods and and five cities. n the early s, the people across the province. The infrastructure province’s economy was heavily dependent project will provide an alternative route for on agriculture. It was, and still is, considered the motorists coming from and Metro main rice growing province of the Philippines. Manila, thereby reducing travel time. The bulk To be able to keep up with the high growth of the amount has been channeled into the demand of today’s economic environment, construction of a two-lane road that will link the however, the provincial government of Nueva towns of Peñaranda, San Isidro, and Cabiao; Ecija has embarked on developing more and the city of Gapan in the southern part of opportunity-generating structures in a bid to the province. The province has also facilitated ultimately boost income-generating activities the building of over 171 public school buildings and livelihood expansion in the province. consisting of 342 classrooms. “We wanted to construct infrastructure and Speaking at last year’s signing ceremony for community facilities that would be of service to the omnibus loan to the provincial government the people of Nueva Ecija, and also bring in of Nueva Ecija, DBP chairman Alberto G. investments from both the private and public Romulo expressed his admiration for sectors,” incumbent governor Czarina Umali said. how progressive Nueva Ecija has become,

DBP DEVELOPMENT BANKER | July - December 2019 43 The bank has also funded various infrastructure projects in Nueva Ecija particularly the construction of farm-to-market roads.

adding: “Today, we are ushering in a new chapter in our long-standing partnership as we ink this agreement for a P1.3-billion omnibus term loan facility. I am excited for this project because its effects are far-reaching; it doesn’t impact just one sector or region in the province. ince this term loan will finance the construction and rehabilitation of roads in various parts of the province, many ovo Ecianos will benefit from it. Motorists and commuters will soon no longer have to deal with traffic while farmers and traders will soon find it easier to transport their goods to the markets.” Through its partnership with DBP, the provincial government was also able to establish the Eduardo L. Joson Memorial Hospital and the Agri-Pinoy Trading Center in Cabanatuan City. Rice drying, treatment and onion cold storage centers have also been constructed in the province. At present, Nueva Ecija is one of the leading producers of onions in South East Asia. “We are thankful to DBP for assisting our province. Hopefully, we will be able to sustain these improvements in the years to come,” Governor Umali added. Today, Nueva Ecija is among the bank’s top clients in the region. Proving the importance of collaboration and a shared vision of empowered local communities, DBP and the provincial government have put into service Photos above show the technical interior of the onion cold storage plant. projects that are in line with efforts to put up the necessary infrastructure to maximize the growth potential of Central Luzon and to spearhead to take an active stance on pursuing more development in the countryside. collaborations that will facilitate the efficient Encouraged by success stories of local movement of goods and people across partnerships for growth, DBP remains ever the nation thus, further boosting trade and committed to advancing sustainable livelihood opportunities for more and more local development goals. The bank continues communities. ■

44 DBP DEVELOPMENT BANKER | July - December 2019 DBP-funded Modern Poultry Project Opens in Camarines Norte

BP regional offi cers recently oined The tunnel-ventilated poultry building of Camarines Norte governor Edgar Tallado Aramis Farm located in Barangay Lugui, Labo, and other local offi cials in inaugurating a amarines orte is the fi rst of its kind in the Dbank-fi nanced modern poultry building northernmost province of the . envisioned to help boost farm productivity in the “We are pleased to have assisted Aramis province. Farm in the construction of this modern facility,” DBP president and CEO Emmanuel G. Herbosa said of the project bankrolled by a P20-million DBP term loan facility. “This mirrors DBP’s commitment to promote agribusiness in the countryside, contribute to food security, and promote environmental protection.” Located some 350 kilometers south of Manila, Camarines Norte has 12 towns and a population of more than 583,300 as of the 2015 census. Its economy is largely dependent on agriculture. The inauguration of the tunnel- ventilated poultry building, which will increase Aramis Farm’s production by , chicks, is also timely as the fi rm is set to commence its contract-growing venture with Bounty Agro Ventures, Inc. Governor Tallado thanked DBP for its continuing efforts to assist small and medium enterprises in the province as well as the other projects of the provincial government. Owned by spouses Erwin and Rhoda Lausin, Aramis Farm is also in the process of securing bank assistance for the construction of a second poultry building scheduled within the year. ■

Top photo shows the blessing and inauguration of the tunnel-ventilated poultry building of Aramis Farm led by governor Edgar Tallado (front row, center), Camarines Norte vice governor Jonah Pimentel (in red shirt), Aramis Farm owner Erwin Lausin (in white polo shirt and light gray short pants), and DBP Camarines Sur Lending Center head assistant vice president Ariel Peña (extreme left).

Bottom photo features governor Tallado, vice governor Pimentel, and Peña inspecting the tunnel-ventilated poultry facility that will house 45,000 heads of day-old chicks.

DBP DEVELOPMENT BANKER | July - December 2019 45 Photo shows governor Alexander Pimentel (fourth from left), Barobo mayor Joey Pama (eighth from left), Unifrutti International Holdings, Ltd. CEO Marco Venturelli (eighth from right), Unifrutti Group Philippines president and chairman Alberto Bacani (seventh from right), DBP president and CEO Emmanuel G. Herbosa (fi fth from right) and DBP directors Luis C. Bonguyan (fourth from right) and Emmanuel P. Galicia Jr. (extreme right). Also in photo are senior vice president Annie Veloso (third from right) and senior manager Amelita Pinanday (second from right) from DBP and other nifrutti Group offi cials.

Grow ng Bananas by Maria Niecel B. Fullido

he Philippine Statistics Authority (PSA), in its Major Fruit Crops Quarterly Bulletin for July-September 2019 reported: “Banana production from July- September 2019 was estimated at 2.39 million metric tons. posted the highest production of 894.63 thousand metric tons, which represented 37.4 percent of the total banana output this quarter. This Twas followed by Northern Mindanao and with 21.8 percent and 12.6 percent shares, respectively. Cavendish variety recorded the highest output of 1.23 million metric tons, which comprised of 51.2 percent of the total banana production. Saba and lakatan varieties shared 28.4 percent and 10.7 percent to the total, respectively.”

The Business Mirror, meanwhile, reported that registered some 2.85 million metric tons in the Philippines has reclaimed its position as the banana exports in 2017 alone.2 second largest exporter of bananas in the world, Acting swiftly to give the sector a further but Filipno growers have urged the government boost and allow it to make the most of the to provide more support to maintain the stature, pervading optimism in the industry, DBP in view of the tightening competition coming has approved a total of US$38.6-million (or from South American exporters.1 As one of the approximately P2.084- billion) in loan assistance top fi ve eporters of bananas, the Philippines to MT Kitanglad Agri-Ventures, Inc. (MKAVI-1)

1 “PHL reclaims rank as 2nd top banana exporter; growers seek govt aid,” by Jasper Y. Arcalas, February 4, 2019, https://businessmirror.com. ph/2019/02/04/phl-reclaims-rank-as-2nd-top-banana-exporter-growers-seek-govt-aid/ (uptake October 14, 2019, 10:32 am) 2 www.promusa.org/Philippines on the Philippine banana industry, with reference to export data from OpenSTAT of the Philippine Statistics Authority (PSA), (Uptake October 14, 2019, 11:10am)

46 DBP DEVELOPMENT BANKER | July - December 2019 and Unifrutti Tropical Philippines, Inc. (UTPI) area of 8,850 sq.m. that can accommodate which, together with several other subsidiaries, 470,000 boxes of bananas at any given time. comprise the Unifrutti Group. Cold storage facilities are equipped with an The DBP funding assistance – composed of advanced refrigeration system that improves the several facilities will support the development of quality and shelf life of fresh produce. 700 hectares of banana plantations in Surigao MKAVI-1, on the other hand, operates a del Sur and Bukidnon. 674-hectare banana plantation located in The Unifrutti Group already has existing Alanib, Lantapan, Bukidnon. corporate grower farms in these project sites, The Unifrutti Group has three other corporate which are known locations for agricultural farms in the Philippines with a total area of 596 farms of banana and palay, among others. hectares. It also works with various banana These project locations also offer the additional contract growers, covering a total hectarage of advantage of suitability for plantation 6,750 located all over Mindanao, mostly in the epansions, given its classification as generally Davao Region. Through this working partnership, peaceful and progressive. the Unifrutti Group is able to achieve a total production average of 23.7 million boxes or Unifrutti Group 270,000 metric tons of Cavendish bananas per Unifrutti Group is known for opening and year. maintaining banana plantations in conict- affected areas in Mindanao. Unfrutti Philippines UTPI is a world-renowned grower and Unifrutti started its Philippine operations trader of fresh fruits. It is also one of the through Oribanex Services, Inc. in 1991 in Davao largest producers of export-quality Cavendish City, , where Unifrutti is currently bananas in the country. It owns and runs the located. It was established mainly to ensure a port and cold storage facilities and provides stable and continuous supply of good quality management services for the Group’s Philippine fruits for the market of the Italian-owned De corporations. Nadal Group of Companies, which also owns Unifrutti Group’s port facility can Unifrutti Holdings International Limited. Founded accommodate two international vessels at any in 1948 in Eritrea, Africa, the former's main time, while their 1.3 hectare container yard can business is the trading of fresh fruits, with sales hold 200 container vans. The facility has two reaching more than 556,000 MT throughout cold storage facilities, with 100 rooms and a total the world.

Photos below show Unifrutti Tropical Philippines, Inc.'s port facility in Panacan, Davao City.

DBP DEVELOPMENT BANKER | July - December 2019 47 Currently, the Unifrutti Group's main their ainforest Alliance ertifi ed eal A, production areas are in South Africa, the which means its existing businesses meet the Philippines, Chile, Italy, and Argentina. It has Sustainable Agricultural Network standard. This trading operations in Europe, the Middle East, underscores its continuing regard for efforts Japan, China, and Korea. The group's corporate to conserve ecosystems, protect biodiversity plantations produce highland bananas from and waterways, conserve forests, reduce 530 to 1,175 meters above sea level, which agrochemical use, and safeguard the well- fetch premium prices because they are sweeter being of its workers and local communities. than the lowland varieties. Total hectarage of From DBP’s development standpoint, the farms planted to bananas is 8,020 for a yearly bank’s partnership with the Unifrutti Group will go production of over 20 million boxes of export a long way to maintain the Philippines’ stature in quality Cavendish bananas. It has contract world banana production and export. growers consisting of fi ve corporations, nine As DBP president and CEO Emmanuel cooperatives, and two independent contract Herbosa said of the partnership: “It is no growers contributing 6,750 hectares to the secret that banana is one of our country’s group's farm productions. top agricultural products, with Mindanao accounting for a lion’s share of the production, It pays to go bananas and thousands of farmers relying on it for their The disparity between the volumes supplied livelihood. I am optimistic that this initiative by its own farms and those contracted (1,270 will boost banana production in the region, in hectares vs. 6,750 hectares) has prompted the the process help stabilize prices and provide Unifrutti Group to expand their corporate farms more employment opportunities for our fellow to ensure supply and price stability in the future. Filipinos. This project is also a showcase of our he group has identifi ed eight locations for commitment to support the agricultural sector these expansions that include those in Surigao not only in Mindanao but the entire country. del Sur, , , Davao elping the sector thrive would yield benefi ts del Sur, Bukidnon, Basilan, North Cotobato and such as achieving food security and self- South Cotobato. These areas will cover a total suffi ciency, eradicating etreme poverty and of , hectares, with DBP funding the fi rst three hunger, and preserving the environment. ■ locations that will kickstart the group’s major expansions in phases. Beyond corporate growth, however, Unifrutti Group’s planned expansion also supports efforts to bring peace and development in con ict areas in Mindanao. To the group’s credit, its subsidiary Mt. Kalatungan Agri-Ventures, Inc. (MKAVI-2) -- operates a 272-hectare highland banana farm in Bumbaran, Lanao del Sur. This farm project is now a show window in the Autonomous Region in Muslim Mindanao (ARMM) where Muslims and Christians work side by side in peace and harmony. The group’s impact on employment generation is also not to be taken lightly. Given the labor-intensive nature of their farm operations, the group’s projects will employ a total of 3,500 across its companies in the Philippines, with an additional 1,000 jobs resulting from their expansion initiative. The Unifrutti Group likewise gives importance to the environment in the pursuit of its business. Attesting to this is

Photo shows (from left): Mt. Kitanglad Agri-Ventures Inc. (MKAVI-1) and Unifrutti Tropical Philippines, Inc. (UTPI) president and CEO Alberto Paterno F. Bacani; Unifrutti Holdings International Ltd. (UHIL) CEO Marco Venturelli, and DBP president and CEO Emmanuel G. Herbosa.

48 DBP DEVELOPMENT BANKER | July - December 2019 Launch of DBP Governance Circles at DBP Tagbilaran Branch in . In photo are (from left): DBP senior vice president Perla Melanie C. Caraan; DBP Employees Union president Rudelito irado; DBP vice president Romeo Carandang; DBP directors Rogelio V. Garcia and Maria Lourdes A. Arcenas; DBP president and chief eecutive offi cer Emmanuel G. Herbosa; DBP directors Luis C. Bonguyan, Emmanuel P. Galicia Jr, and Teodoro M. Jumamil; DBP assistant vice president Masli Quilaman; and DBP senior vice president Fernando Lagahit. DBP Rolls Out Governance Circles

BP has launched its bankwide re ected in bank initiatives, said DBP president and Governance Circles designed chief eecutive offi cer Emmanuel . erbosa. to further institutionalize good “The DBP Board considers the Governance governance processes to Circles as its partners to reinforce core ethical values strengthen overall organizational of trustworthiness, accountability and fairness in line Deffectiveness and foster a culture of inclusion with its mission of supporting sustainable growth,” said and learning for best practice. DBP director Maria Lourdes A. Arcenas, Governance committee chairperson. DBP is the fi rst among government fi nancial A milestone in participatory institutions (GFIs) in the country to operationalize governance, the Governance Circles Governance Circles for enhanced performance and serve as the key governance venue delivery of services. ■ to facilitate open engagement in the implementation of bank policies through Photo shows DBP offi cials (from left): DBP Employees nion president Rudelito irado Jr. directors Rolando honest communication, close Metin and Maria Lourdes Arcenas president and chief eecutive offi cer Emmanuel Herbosa directors collaboration, and commitment to Emmanuel Galicia, Jr., Luis Bonguyan, Rogelio Garcia, and Teodoro Jumamil during the launching ceremony of the Governance Circles in Bohol. good governance. Its rallying cause of “Tulong-Tulong Makamit ang Kabutihan para sa Bayan” highlights the importance of excellence, teamwork, integrity, service to others, and love for the Filipino as hallmarks of a responsible DBP corporate citizen. “The Governance Circles allow the DBP team to bring forth ideas and experiences to the policy-making table as well as stakeholder concerns as appropriately addressed and

DBP DEVELOPMENT BANKER | July - December 2019 49 DBPby Edille Anne Z. RISEReyes Banks on the Youth

ducation is a fundamental factor for individual’s potential is nurtured and supported for development and growth. It remains a key sustainable country-wide growth. aspect of progress – and empowering tool For over 72 years, DBP has played a pivotal not only for individual growth, but also for role in funding the evolving development needs building a nation. of the country. The bank has supported not only infrastructure development, but human development as well. As a developmental funding E Today’s society presents us with various institution, DBP is committed to broadening not only developmental and technological changes. Such fi nancing options and investment opportunities but occurrence has made it possible for nations to also to etending fi nancial assistance to support expand and improve. For a developing country government reforms and priority initiatives. like the Philippines, it is important that every

50 DBP DEVELOPMENT BANKER | July - December 2019 Carrying on with its commitment to promote the welfare of Filipinos particularly the underprivileged and undereducated, DBP has signed a memorandum of agreement with 14 partner-schools for the DBP Resources for Inclusive and Sustainable Education (RISE). DBP RISE is the bank’s primary corporate social responsibility initiative for education. Through creative collaboration with selected partner-schools, DBP aims to help mold fi nancially-challenged ilipino youth into responsible, empowered, productive and competitive global citizens. The program

...in fi ve years, we will " be" having a total of fi v e batches of scholars as benefi ciaries." DBP president & CEO Emmanuel G. Herbosa

seeks to empower indigent students in their residency training, and expenses during academic pursuits by making quality education review for board exams – which should all be accessible and easy to avail. adequately addressed in order that students The bank has partnered with 14 schools for may focus on staying fi t and competitive in the scholarship program, including the University their respective academic endeavors. of Cebu, Philippine Normal University, University of “As of August 31, 2019, the bank has Science and Technology of Southern Philippines, already released P4.38-million to cover the Mindanao State University – General Santos, fi nancial reuirements of our scholars. n fi ve Mindanao State University System, Lyceum of the years, we will be having a total of fi ve batches Philippines University – Cavite, DMMA College of scholars as benefi ciaries of the P-million of Southern Philippines, Mary Queen College of program, erbosa said. Quezon City, Inc., Mindanao State University – Tawi- To date, RISE scholars are pursuing courses Tawi, Our Lady of Triumph Institute of Technology, in engineering, real estate management, Polytechnic University of the Philippines, UP Los accountancy, education, sciences, Baños, and West Visayas State University. agriculture, allied medical fi elds, maritime, “The challenge for the younger generation information technology and technical- is to be the person our country needs. I vocational at partner-schools all over the anticipate that through this collaboration with country. This is also part of DBP’s efforts to the DBP RISE Partner Schools, we will not only support the country’s “Build, Build, Build” support the scholastic pursuits and aspirations program. of our scholars, we will also help uplift Philippine The RISE program is a testament to society,” said DBP director Rolando L. Metin, DBP’s belief that every Filipino is capable of who delivered the message of support of achievements that will lead to developmental chairman Alberto G. Romulo during the MOA feats. For the nation to prosper, the youth’s signing. potentials must be nurtured and honed, and DBP president and chief executive there is no better tool to achieving this than offi cer Emmanuel . erbosa, meanwhile, education. Through the RISE program, DBP announced that the bank has allocated a hopes to be able to improve not only the lives total of P-million to fi nancially support at of the scholars as through education, they least 1,750 scholars from the marginalized are also expected to be transformed into sector of the country. Scholarship support productive members of society that would covers tuition, board and lodging expenses, share in the advocacy of advancing country- living allowance, cost of apprenticeship, wide growth. ■

DBP DEVELOPMENT BANKER | July - December 2019 51 NEWS ROUNDUP

DBP-Backed Infra Projects to Boost Economic Activity in Tuguegarao City

BP has extended a P600-million Tuguegarao City mayor Jefferson P. Soriano loan to finance key infrastructure expressed gratitude to DBP for supporting proects of the city government the city government’s various development programs. “Thank you to DBP for the assistance of uguegarao that will stimulate and I hope we can continue our partnership in economic activity in the capital of the future,” he said. Dprovince. Tuguegarao is the most populous city in Region II with more than 153,500 residents as of DBP president and chief eecutive officer the 2015 census. It is the center of trade and Emmanuel . erbosa said the bank is lending commerce in the region and one of the fastest- P400-million for the reconstruction of the growing cities in the country. Don Domingo public market, and another The city government of Tuguegarao is P200-million for the repair of various roads in a long-standing partner of DBP which has Tuguegarao City. previously assisted its projects such as the “DBP is proud to be partnering anew with acquisition of garbage compactors and the the local government of Tuguegarao City for construction of classrooms and school buildings these projects that will give residents a new in different public schools. The city is also a top public market and more well-paved roads,” depositor of DBP Tuguegarao branch and has he said. “We envision the public market to availed of various cash management solutions stimulate economic activity in Tuguegarao and of DBP such as Point of Sale terminals, prepaid provide micro-entrepreneurs with a venue to ply cards, ATM payroll, deposit pick-up, and eGOV their trade. e are confident that our assistance services. ■ will go a long way in helping sustain economic growth in the city through the provision of modern infrastructure and community facilities.”

DBP president and chief eecutive officer Emmanuel G. Herbosa (in white barong center) shakes hands with uguegarao City mayor Jefferson P. oriano after the P00-million loan agreement signing between DBP and the city government of uguegarao. Also in photo are (from left first row): uguegarao City treasurer Buenaventura . Lagundi; DBP eecutive vice president Jose Gabino D. Dimayuga; uguegarao City vice mayor Bienvenido C. De Guzman ; DBP senior manager Carolyn C. Bago; and uguegarao City administrator Atty. Romeo . Calubaquib. itnessing the loan signing at the back are (from left): Association of Barangay Councils president Gil G. Pagulayan; uguegarao City councilor Danny L. Baccay; DBP vice president Catherine . Camarao; and uguegarao City councilors Arnel . Arugay (partly hidden) Gilbert . Labang and ynnoco R. Abraham (partly hidden).

52 DBP DEVELOPMENT BANKER | July - December 2019 NEWS ROUNDUP

DBP Seals Pact with Isabela LGU, Fintech Firm to Benefit Local Farmers

BP has signed a memorandum of understanding with the Provincial Government of sabela the Dagkaisang Magsasaka ng sabela (M) Agriculture Cooperative and PayMaya Philippines nc. to facilitate the disbursement of funds to the farmer-members of M Agri-Coop and tobacco farmers in the province. DBP president and chief DBP president and chief eecutive offi cer Emmanuel G. Herbosa (center) oins hands with (from left) DBP Eecutive Vice President usan . Prado; PayMaya ounder and Chief Eecutive Offi cer Orlando Vea; sabela Governor Rodolfo . Albano eecutive offi cer Emmanuel ; DBP Eecutive Vice President Jose Gabino D. Dimayuga; and M Agri-Coop President Ana Cristina iquian-Go after the . erbosa said under the signing of the memorandum of understanding. MOU, PayMaya Philippines Inc. would issue Automated Teller Machine payment solutions. It provides Filipinos with A dentifi cation ards to more or less , e-wallet that allows them to perform cashless member-farmers of NMI Agri-Coop and 5,000 transactions any time of the day, from anywhere tobacco farmers of Isabela. in the world, and from any device. “DBP is honored to be a part of this erbosa said DBP would also be opening momentous undertaking, erbosa said. he a fi nancing window for Agri-oop under issuance of ATM ID Cards by PayMaya will allow the Expanded Rice Credit Assistance of the for the cashless disbursement of funds including Rice Competitiveness Enhancement Fund proceeds of the farmers’ share from the excise EA-E component of the ice arrifi cation taxes.” Law. Under the MOU, DBP would also offer e said the loan proceeds will be utilized its Digital Banking Portal (DBP2) both to the as working capital to procure palay from the Provincial Government of Isabela and NMI marginalized member-farmers of NMI Agri-Coop Agri-Coop to facilitate ease in monitoring and at a premium rate, adding, “…trading and all disbursement of funds. Through the DBP2, they other fi nancial transactions would be coursed can view and monitor their cash balances and through the ATM ID cards…” transaction history as well as perform electronic his would also benefi t the tobacco fund transfers, bulk credit or debit upload farmers in the province as proceeds from the instructions, liquidity management, among others. excise taxes from locally-manufactured cigarettes, The NMI Agri-Coop was established on barley and native tobacco would be channeled August 28, 2019 through the support of the through the A D cards, erbosa said. Provincial Government of Isabela, with the Under Republic Act No. 7171, the National primary objective of mitigating the impact of Government extends special support to tobacco epublic Act o. or the ice arrifi cation farmers which are sourced from the 15 percent Law of 2019. Isabela is widely-regarded as the of excise taxes on locally-manufactured Virginia- rice and corn granary of Luzon accounting for 12 type of cigarettes. percent and 21 percent of the total annual rice erbosa lauded the sabela Provincial and yellow corn production of the country as of Government for initiating the project that intends 2018. to enhance the overall productivity, enhance Payaya, the digital fi nancial services arm product quality, increase incomes, and open of Voyager Innovations, is a Fintech company possible entrepreneurial pursuits of local farmers offering integrated consumer and merchant through the use of available technology. ■

DBP DEVELOPMENT BANKER | July - December 2019 53 NEWS ROUNDUP

DBP-Funded Infra Projects to Rise in Ilocos Norte

hree big infrastructure proects funded by DBP will soon rise in locos orte and help sustain the socio- economic development in the Tprovince. ffi cials of DBP and the provincial government of Ilocos Norte recently attended the simultaneous groundbreaking ceremony of the three big-ticket infrastructure projects tipped to boost the province’s stature as a thriving northern gateway. In 2018, DBP approved a P2.042-billion loan for the construction of the provincial capitol expansion building,

reconstruction of a food park, and Photo shows senator mee Marcos (in red top) with locos governor Matthew Marcos rehabilitation of the Ferdinand E. Manotoc (middle) and DBP eecutive vice president Jose Gabino Dimayuga (rightmost) during the groundbreaking ceremony of the three DBP-fi nanced infrastructure proects in Marcos memorial stadium. locos orte. The Ilocos Norte provincial capital expansion building is a three-storey structure that will consist of offi ce and commercial spaces, a multi-purpose hall, and parking spaces. It will be funded by a P640-million loan from DBP. The Dap-Ayan Food Park, meanwhile, will become the tallest government building in Ilocos Norte. The eight-storey building, which will be built with a P360-million DBP loan assistance, will have an architectural design similar to that of the Provincial Capitol building. The Ilocos Norte provincial government wants to use the building to showcase the province’s unique and quality products in a bid to promote trade and investment in the area. In her message, former Ilocos Norte governor The rehabilitation of the Ferdinand E. Marcos and now senator Imee R. Marcos said that Memorial Stadium is in line with the provincial the infrastructure projects are part of a master government’s efforts to boost tourism in the plan for Metro Ilocos to boost sustainable province. It has a seating capacity of 11,000 development in the province through quality and will be built with a P1-billion DBP funding infrastructure and public facilities. She added assistance. that the plan is now being realized under the The projects are expected to be completed new administration of new governor Matthew within three years. arcos anotoc. ■

54 DBP DEVELOPMENT BANKER | July - December 2019 NEWS ROUNDUP

DBP Supports Parañaque City Student Assistance Program

BP recently signed a memorandum requirements, with interest to be earned upon of agreement (MOA) with the city reaching a deposit balance of P500.00. government of Paraaque and the “We want to make it possible for the student- Department of Education (DepEd) for a benefi ciaries to access their accounts easily student assistance program that will benefi t over through our services. President erbosa said. DBP D0000 qualifi ed public school students. will also conduct the proper training to teacher- advisers at designated partner-schools on the KYC procedure under the AMLA, in coordination with President and chief eecutive offi cer the LGU and DepEd. Emmanuel . erbosa said the bank will assist the This latest arrangement is a testament to local government unit of Parañaque in providing DBP’s continuous effort in contributing to the a P5,000 annual allowance to junior and senior improvement of lives of Filipinos across the nation public high school students in the city starting this to make available the highest possible standards of school year, in a bid to also encourage out-of- uality education, president erbosa added. school youth to go back to school. Paraaue ity is a fi rst class, highly urbanized Under the agreement, DBP will facilitate city with over 21 public elementary schools and 10 the electronic disbursement of allowances and public high schools. City mayor Edwin L. Olivares subsidies through the students’ DBP savings said the joint initiative with DBP and DepEd would account, which comes with a DBP EMV Debit allow the city government to arrange for P500 Card that may be used at any DBP or BancNet- monthly allowance for all public school students affi liated A. Approved student-benefi ciaries of the city, provided that they would exhibit shall be ualifi ed to open a DBP savings account consistent class attendance and good moral without the initial deposit and maintaining balance character and conduct. ■

DBP president and chief eecutive offi cer Emmanuel G. Herbosa (third from right) stands with offi cials from the Department of Education (DepEd) from left respectively: Paraaque City treasurer Dr. Anthony L. Pulmano Paraaque City mayor Edwin L. Olivarez and DepEd chool Division superintendent Dr. Maria Magdalena M. Lim during the signing of the Memorandum of Agreement. Also in photo are DBP eecutive vice president usan . Prado (second from left) and senior vice president Madeleine . Aldana (etreme right).

DBP DEVELOPMENT BANKER | July - December 2019 55 NEWS ROUNDUP

DBP Pumps Up Cavite Digitalization Efforts

n support of the digitalization efforts The CBN, which is eyed for implementation in Cavite, DBP has recently signed a by the second quarter of 2020, aims to centralize P590-million loan agreement with the government services and enhance the Provincial Government of Cavite for the province’s current communication systems, and establishment of the Cavite Broadband is an offshoot of the LGU’s LINKod Kabitenyo Project, which offers free internet access to INetwork (CBN). approximately 631,700 users through public Wi-Fi in 111 sites. DBP president and chief eecutive officer Herbosa furthered said that this partnership Emmanuel G. Herbosa said that the project is a step towards the fulfillment of the involves the laying of a fully underground fiber National Government’s mandate to improve optic cable backbone to that will be installed the country’s digital infrastructure through along Cavite’s major roads and highways in enhanced communications and connectivity. 23 municipalities and the Provincial Capitol he first-class province of avite has more Compound, 128 public schools, and 44 public than 3.6-million residents as of 2015 census. It areas. has an employment rate of 84.4% with a total “DBP’s loan assistance to the province of 1,226 industrial establishments, with the solidifies our commitment towards inclusive electronic and telecommunications sector growth and sustainable development,.” ranked second in terms of the most number of Herbosa said. “We are honored to be part of establishments operating in the province, based the province’s effort in enabling ease of doing on the avite Ecological eport. ■ business through digitization.”

DBP executive vice president Jose Gabino D. Dimayuga (in white barong, center) shakes hands with Cavite provincial governor Juanito Victor Remulla after the signing of the P590-million agreement between DBP and the Provincial Government of Cavite. Also in photo are (from left): DBP legal officer Atty. Jose Maria L. Villareal; DBP manager Edward R. Mansion; DBP senior vice president Abelardo L. Monarquia; DBP account officer Jian April P. Parker; DBP legal officer Atty. Raquel C. Enriquez; and Cavite governor chief of staff Atty. Hubert V. Gervacio.

56 DBP DEVELOPMENT BANKER | July - December 2019 NEWS ROUNDUP

DBP Joins Global Movement for Responsible Banking

BP has recently become one of the Founding Signatories of the Principles for Responsible Banking, committing to strategically align its business with the Sustainable Development Goals and the Paris DAgreement on Climate Change.

By signing the Principles for Responsible Banking, DBP joins a coalition of 130 banks worldwide, representing over US$47-trillion in assets, in committing to taking on a crucial role DBP president and CEO Emmanuel G. Herbosa says that sustainable and responsible in helping to achieve a sustainable future. banking practices have always been at the core of the bank's operations. Taking place at the start of the UN General Assembly last month, the official launch of the to those that back nature as solution, everybody Principles for Responsible Banking marked the wins in the long-term.” beginning of the most significant partnership The Principles for Responsible Banking are to date between the global banking industry supported by a strong implementation and and the UN. “The UN Principles for Responsible accountability framework. By signing them, DBP Banking are a guide for the global banking commits to being transparent on both its positive industry to respond to, drive and benefit from and negative impact on people and planet. a sustainable development economy. The DBP will focus where it has the greatest impact Principles create the accountability that can – in its core business – and set, publish and realize responsibility, and the ambition that implement ambitious targets to scale up positive can drive action,” said UN Secretary-General and address any negative impacts in line with Antonio Guterres at the launch event, attended global and local goals. by the 130 Founding Signatories and over 45 of DBP President and hief Eecutive fficer their CEOs. Emmanuel G. Herbosa said, “Sustainable and As expressed in the Principles for Responsible responsible banking practices have always Banking, DBP is convinced that “only in an been at the core of DBP’s operations. By inclusive society founded on human dignity, being one of the founding signatories of the equality and the sustainable use of natural Principles for esponsible Banking, DBP re-affirms resources can our clients, customers and its commitment to protecting the planet and businesses thrive.” ensuring a sustainable and prosperous tomorrow By signing up to the Principles, the banks for future generations.” commit to “using our products, services and The Principles for Responsible Banking will relationships to support and accelerate the provide DBP with an effective framework to fundamental changes in our economies and systematically identify and seize new business lifestyles necessary to achieve shared prosperity opportunities created by the emerging for both current and future generations.” sustainable development economy, while at “A banking industry that plans for the risks the same time enabling the bank to effectively associated with climate change and other identify and address related risks. environmental challenges can not only drive The Principles for Responsible Banking were the transition to low-carbon and climate- developed by a core group of 30 Founding resilient economies, it can benefit from it, Banks through an innovative global partnership said Inger Andersen, Executive Director of the between banks and the UNEP Finance Initiative United Nations Environment Programme (UNEP). (UNEP FI). UNEP FI is the UN-private sector hen the financial system shifts its capital collaboration that includes membership of more away from resource-hungry, brown investments than finance institutions around the globe. ■

DBP DEVELOPMENT BANKER | July - December 2019 57 sa DBP Pasko2018 BP’s Christmas 2019 celebration has always been one of the most colorful Dand meaningful. The traditional DBP Christmas décor ushers in and turns up the holiday vibe. This is soon followed by more activities that pump up the season’s cheer, and everybody just couldn’t help but partake in the revelry.

58 DBP DEVELOPMENT BANKER | July - December 2019 DBP Star lights up Christmas DBP hosted this year’s Light Up Makati Launching Ceremony, one of the most anticipated activities in the city during this meaningful season. Light Up Makati is an initiative of the local government that mobilizes active community engagement and involvement. When the Light Up Makati contest was launched in 2017, DBP’s entry bagged the fi rst prize in the private/corporate establishments category. This year, DBP’s Christmas Star lighted up the bank’s head offi ce façade, to symbolize the hope that DBP brings as it reaches out and brings those in the fringes in the mainstream of the country’s journey towards economic inclusion.

Fellowship. Fun. Family. Fortitude. The DBP Family gathered for their fi rst-ever institutional fellowship in a night of pure camaraderie and fun. Everyone made the most of D-day, gamely measuring up to DBP president and CEO Emmanuel Herbosa’s invitation: “Fellowship. Fun. Family. Fortitude. We owe it to our beloved institution -- and to each other -- to consistently cultivate and nurture these. At our fi rst institutional Fellowship, let's do nothing less than this. I look forward to meeting you all. It would be my honor and pride to shake your hands and share a memorable moment with the brilliant and admirable men and women of DBP.”

DBP DEVELOPMENT BANKER | July - December 2019 59 All roads lead to the DBP Christmas Bazaar DBP Family caroling Bargain hunters had their fi ll of an affordable To cap off all the Christmas festivities, shopping experience at the 2019 DBP Christmas employees serenaded their Board of Directors Bazaar. Those looking for affordable Christmas during the DBP Family Caroling. A tradition that gifts, food and other bargain items had a fi eld started years ago following the institutional day shopping with almost 80 stalls showcasing strengthening program of DBP in the 1980s, an array of items that included RTW and offi cers and employees in the head offi ce of the accessories, Christmas and home decor, leather bank come face-to-face with their leaders in products, and native delicacies. a warm exchange of Christmas greetings and well-wishes for the coming year.■

60 DBP DEVELOPMENT BANKER | July - December 2019 CONTENTS