By 2016, a globally-recognized development financial institution, serving as a catalyst for a progressive and poverty-free Philippines.
We will work for raising the level of competitiveness of the economy for sustainable growth.
We will support infrastructure development, responsible entrepreneurship, efficient social services and protection of the environment
We will promote and maintain the highest standards of service and corporate governance.
DBP's history can be traced back during the Commonwealth when infrastructure for development financing was laid by the government.
1935 - The National Loan and Investment Board (NLIB) was created to coordinate and manage government trust funds such as the Postal Savings Fund and the Teacher's Retirement Fund.
1939 - The Agricultural and Industrial Bank (AIB), which absorbed the functions of the NLIB, was created and started to harness government resources until the outbreak of war.
1947 - The government created the Rehabilitation Finance Corporation (RFC) under R.A. No. 85 which absorbed the assets and took over the functions of the AIB. The RFC provided credit facilities for the development of agriculture, commerce and industry and the reconstruction of properties damaged by the war.
1958 - The RFC was reorganized into the Development Bank of the Philippines. The change in corporate name marked the shift from rehabilitation to broader activities.
With an initial capital of P500 million subscribed by the government, the DBP expanded its facilities and operations to accelerate national development efforts. This forward thrust saw the establishment of a network of branches throughout the country. The DBP tapped both foreign and local fund sources to complement its capital resources. Credits were obtained directly from international financial institutions.
The DBP delivered to the economy substantial benefits in capital formation, employment generation and increased revenues, particularly in the countryside. In the late seventies and early eighties, however, its viability was undermined by an increasing number of non-performing accounts following a period of economic difficulty.
1986 - Former President Corazon Aquino issued E.O. No. 81 which provided for the 1986 Revised Charter that called for a clean up of DBP's books, staff reorganization and infusion of initial operating budget. The rehabilitation program restored its financial viability and DBP resumed lending operations.
With the transfer of non-performing assets together with liabilities in June 30, 1986 to the National Government, the DBP implemented an institutional strengthening program covering a thorough revision of the credit process and a training program for the intensive implementation of new lending thrusts. The Bank likewise reopened its lending windows for housing, agriculture, and small and medium scale industries.
1995 - The DBP was granted an expanded banking license and attained universal banking status.
1998 - Former President Fidel V. Ramos signed R.A. 8523 amending DBP's 1986 Charter. Among the major provisions incorporated in the new DBP Charter were the increase of authorized capital stock from P5 billion to P35 billion, and the creation of the position of President and CEO.
These developments paved the way for the pursuit of other activities that allowed the Bank to fulfill its development mandate more meaningfully.
On November 21, 2003, DBP’s active engagement in climate change initiatives was formalized through the Carbon Investment Banking Facility (CIBF). DBP represents eligible projects in acquiring incentives from the Clean Development Mechanism (CDM). To make its services more efficient and effective, DBP created the Carbon Finance Program (CFP) on August 10, 2010 to include a seed fund that allows the Bank to advance CDM transaction costs.
Project owners may be either private entities or Local Government Units (LGUs).
Encourage greenhouse gas (GHG) abatement activities in the Philippines. The added revenues from the sale of a project’s Certified Emissions Reduction (CER) units help project owners repay their loans and enhance project viability.
DBP brings together the needed resources and requirements to register a project with the CDM Executive Board. It also plays an active role in project monitoring, requesting issuance of carbon credits and CER monetization. With the Programme of Activities (PoA) scheme of registration, DBP gives small but eligible projects opportunity to gain financially from the CDM. (A Programme of Activities or PoA is a mode of CDM registration, which allows inclusion of an unlimited number of CDM project activities, especially those with low volume of CDM.)
To date, DBP’s active CDM projects intended to be registered by 2012 are:
Seed fund of PhP 60 million from DBP
Launched in January 2009 the EDP is a credit facility that finances projects on waste management, water supply and sanitation, industrial pollution prevention and control, and renewable energy generation.
Japan International Cooperating Agency (JICA) as funder. Eligible borrowers are private corporations/enterprises, RESCOs, QTPs for energy projects, private utility operators, LGUs, non-governmental organizations (NGOs), ECs, cooperatives other than electric cooperatives (Coops), water districts (WDs), and participating financial institutions (PFIs).
Improve the quality of life in rural areas through the provision of adequate, affordable and reliable energy services; and contribute towards mitigating climate change as well as adapting to it through wider use of clean, renewable energy technologies in power generation.
RPP has two project components: (1) EC Grid Sub-Component to transform ECs into empowered, competitive, efficient and financially viable organizations; and (2) Decentralized Electrification to increase electrification by attracting private sector participation.
As of September 2011, 13 projects have been approved for a sum of PhP 1.15 billion.
US$150 Million loan from the World Bank
For all barangays and about 90% of households to have access to electricity services; Ninety percent (90%) of ECs supported to be financially viable with the reduction in system losses and service interruptions; avoidance of about 200,000 tons of GHG emissions annually.
DBP Forest is a grant that could be accessed by different sectors. It was launched in April 2005 after the tragedy in Infanta, Quezon.
Upland and coastal areas nationwide
Eligible forest partners are people’s organizations (POs), LGUs, and state colleges and universities (SCUs)
Prevent soil erosion and conserve water
The program promotes healthy biodiversity, habitat protection and restoration, and provision of rural livelihood opportunities through planting of high value trees in denuded forest plantation areas and sites within critical watershed areas. Seventy per cent (70%) of the harvests are granted to the forest partner.
As of October 2011, DBP has established a total of 37 forest partners all over the country with 6,254.77 hectares approved for planting, of which 3,859 hectares have already been planted and serving 4,597 member-beneficiaries.
PhP 50M initial seed fund from the Kreditanstalt fur Weiderau bau (KfW) of Germany. DBP’s 30% share of the harvests is used to provide fund support to other potential forest partners.
With a long-term goal of developing downstream industries in the rural areas, DBP envisions its partnerships to grow into a forest-based manufacturing industry with DBP as the credit provider and its forest beneficiaries reaping the bountiful harvest amidst strong economic activities.
Lessons learned from project implementation are:
Best practices for replication:
Made available in April 2008. Impacts of climate change reverberate ultimately from the environmental to the social area, threatening human life, shelter, livelihood and health, among others. Such effects are magnified tenfold in the Philippines, a third world country and an archipelagic nation.
Asian Development Bank (ADB) and KfW as funders; Eligible borrowers are private hospitals and public medical facilities.
Improve the delivery of quality health care services in the country by extending credit for investment projects that promote availability, accessibility, and affordability of health care services to people belonging to the lowest income group.
SHCIP supports private hospitals and acquisition of state-of-the-art medical equipment in city centers to address lifestyle diseases. It finances projects in underserved or unserved areas that respond to the health needs of the poor, women and children (i.e., public-owned hospitals, rural health units, barangay health stations, lying-in clinics).
As of September 2011, 30 projects have been approved amounting to PhP 3.2 billion, of which PhP 2 billion are financed by ODA and the rest by the Bank’s funds.
US$ 50 M from the ADB and $US 50 M from the KfW