NEWS

By Mary Grace Padin

In a statement, DBP president and chief executive officer Emmanuel Herbosa said the bank is looking to broaden its support for infrastructure projects, such as tollways, bridges, railways, and other mass transport systems, through its Infrastructure Contractors Support program.

MANILA, Philippines — State-run Development Bank of the Philippines (DBP) plans to expand its financing support for big-ticket public infrastructure projects that aim to enhance the country’s competitiveness.

In a statement, DBP president and chief executive officer Emmanuel Herbosa said the bank is looking to broaden its support for infrastructure projects, such as tollways, bridges, railways, and other mass transport systems, through its Infrastructure Contractors Support (ICONS) program.

“DBP is prepared to expand its support to the government’s priority infrastructure projects dealing with transport and mobility to improve the country’s competitiveness standing,” Herbosa said.

Launched in July 2017, the ICONS program aims to improve the capacity of local contractors to complete their contracts and finance their own investments, including the acquisition of heavy equipment for construction projects.

Contractors duly licensed by the Philippine Contractors Accreditation Board are eligible to borrow under the ICONS program, the DBP said.

Contracts which can be financed under the program include social infrastructure for both residential and non-residential buildings, roads and bridges, water, wastewater, sanitation, power and energy infrastructure.

Herbosa said the DBP is also currently exploring ways it can contribute to the real estate sector once the Real Estate Investment Trust (REIT) Law takes full effect next year.

He said REITs could provide new avenues for growth for the bank, while promoting financial inclusion and providing an alternative means to the country’s property and capital market.

“We see a surge of potential benefits from the full implementation of the REIT Law not just for the bank, but for the entire economy as well,” Herbosa said.

He cited Republic Act 9856 or the REIT Law, which provides for the creation of an asset class that enables potential investors to directly invest in completed real estate projects that are already generating income, such as residential or office units, shopping malls, hotels, and even infrastructure projects like toll roads and power plants.

Earlier, Finance Secretary Carlos Dominguez called on the DBP to invest in REITs or to provide financing support to REIT-backed projects.

DBP is the eighth largest bank in the country, with total assets amounting to P762.17 billion as of the end of 2019.

It has also been designated as the infrastructure bank of the national government.

Source: The Philippine Star