FINANCING SUSTAINABLE DEVELOPMENT GOALS: THE …DBP Policies Toward Inclusive Development Environmental and Social Policies Integrate environmental considerations in DBP operations

FINANCING SUSTAINABLE DEVELOPMENT GOALS: THE INITIATIVES OF THE

DEVELOPMENT BANK OF THE PHILIPPINES

A Presentation by

CECILIA C. BORROMEOPresident and Chief Executive OfficerDevelopment Bank of the Philippines

13 July 2017Karlsruhe, Germany

� Overview of the Philippine Economy

� Overview of the Development Bank of the Philippines

� The 17 SDGs and the Philippines’ “Ambisyon Natin2040”

� DBP Policies Towards Inclusive Development

� DBP Financing Supporting SDGs

� Program Result: Centerpiece DBP Project

� The Way Forward

� 6.8% economic growth rate in 2016 – the fastest growth recorded in the last 3 years

� GDP growth is also one of the fastest in Asia

� PHL is experiencing robust economic growth

� The Economy of the Philippines is the �world's 34th largest economy by nominal GDP according to the 2017

estimate of the International Monetary Fund's statistics�13th largest economy in Asia �3rd largest economy in the ASEAN after Indonesia and Thailand

� 100% owned by the NationalGovernment

� Policy Bank

• 2nd Highest capital adequacy ratio among top 10 Unibank in the Phils.

• 6th best among top 10 Unibank in ROA

• 8th best among top 10 Unibank in ROE

• 10th largest Universal Bank in the Philippines

OVERVIEW OF DBP

is…

� Country’s Premier DevelopmentFinancial Institution

� 70 years in existence

� Key player in the nation-building

� Lending

� Branch Banking

� E-Banking Solutions

� Financial Advisory

GENERAL PROGRAMS OF THE BANK

� Corporate Social Responsibility

� Corporate Governance

� Training of DBPEmployees

� Partnership withBilateral Institutions

Branches & ATM network

(as of June 20, 2017)

BranchesExtension

OfficesOn-site ATMs

Off-site ATMS

121 2 167 437

Wide and extensive coverage in key areas in the Philippines

Luzon43 Branches2 Ext. Offices

NCR19 Branches

Visayas26 Branches

Mindanao33 Branches

DBP’s Role in Philippine Development

� Provides financial assistance to the SME Sector

� Contributes to the lives of Filipino across the nation

� Finances the country’s infrastructure projects

� Advances environmental protection

Sustainable Development Goals (SDGs)

� Aligned with socioeconomic targets of National Government

� Initial year of SDG implementation coincides with beginning of Duterte administration

� Special committees oversee SDG-related work within the PHL government

� SDGs included in yearly Budget Priorities Framework and Philippine Statistical Development Program

Philippines and Sustainable Development Goals (SDGs)

� Integrates SDGs in collective long-term vision and aspirations of PHL and its people

Philippines and Sustainable Development Goals (SDGs)

� Stable, comfortable, and secure life, protected and enabled byan efficient and fair government

� Describes desired quality of life for Filipinos and how thecountry will be by 2040

SDGs Set the Directions for DFIs

� Convergence of national and global goals: end poverty, protect the environment, and ensure prosperity for all people.

� Spells out DFIs’ capability to achieve organizational productivity targets

� Specifies DFIs’ relevance in contributing to host country’s economic, social, and environmental objectives

DBP Experience

� DBP programs reflect commitment in helping PHL government achieve SDGs

� DBP pursuit of developmental projects even before SDGs were conceptualized

� DBP to amplify results-oriented activities based on recognized distinct and current needs

PHL: A Golden Age of Infrastructure

� Address spatial and socio-economic inequality

� Resources for poor provinces and regions

� Resource generation and deployment

� Development felt by majority

� Beyond financial returns: economic, social,environmental objectives

� Funds to make biggest dent to povertyalleviation and prosperity goals

� Branch banking in unbanked areas

� Dedicated lending group for micro and smallborrowers

� Linkages with rural banks and MFIs

DBP Policies Toward Inclusive Development

� Financial advisory for major infrastructure initiatives

DBP Policies Toward Inclusive Development

� Funding for LGU projects

� Credit policies address environmental, social, climate change and risk reduction considerations

� Industry benchmarks and best practices

DBP Policies Toward Inclusive Development� Environmental and Social Policies

� Integrate environmental considerations in DBP operations and services, asset management, and business decisions

� Develop, implement, and improve Bank’sEMS and encourage others to pursueenvironmental protection

� Identify social impacts in risk management andassessment

� Comply with local and international regulations andconventions on social considerations of projects

Infrastructure and Logistics

Environment Initiatives

Social Services & Community Development

Micro, Small and Medium Enterprises

Priority Development Thrusts

(Infrastructure and Logistics

DBP Financing Supporting SDGs

# of Borrowers

Approved Amount Outstanding Balance

150 USD 361M USD 285M

As of March 31, 2017

Approved Amount

USD 746M

# of Borrowers

152

Outstanding Balance

USD 414MAs of March 31, 2017


# of Borrowers


90 USD 603M USD 347MAs of March 31, 2017


# of Borrowers


62 USD 1,011M USD 747MAs of March 31, 2017


# of Borrowers




# of Borrowers




# of Borrowers




# of Borrowers

Approved Amount

Outstanding Balance

1,051 USD 215M USD 143MAs of March 31, 2017


# of Borrowers


396 USD 1,078M USD 776MAs of March 31, 2017


# of Projects Approved Amount Outstanding Balance

4 USD 1.2M USD 1.1MAs of March 31, 2017


� DBP has financed 2,293 projects aligned with SDGs from 2010 to 1Q2017

� CSR Projects

� DBP Forest Program: 44 forest projects from 2005 to 1Q2017

� DBP Endowment for Education Program: 1Q2017


� Integrated Resource Recovery Project

� Located in Naga City, Cebu, Philippines

� Integrated, zero-waste and no landfill approach to municipal solid waste management

� Has handled more than 180,000 tons of solid waste since 2009

SDG 11 - Sustainable Cities and Communities

Centerpiece DBP Project:


� Accepts up to 300 tons per day of mixed waste, processes 150 tons per day of compost, and produces 60 tons per day of refuse derived fuel (RDF)

� Generates at least 763,200 kwh of electricity in a year, displacing power from fossil fuels

� Contributes to the reduction of around 95,252 tons of CO2 equivalent annually




� More than 700,000 residents benefit from improved hygiene and sanitation

� Created employment opportunities

� Income generation from sale of recyclables, refuse derived fuel, and compost

� Project remits taxes to support more development projects



The Way Forward

The Way Forward

� DFIs already deployed on the ground,identifying development gaps, urgentimmediate objectives, and priority sectorsand activities in their respective countries

� Identify financial partnerships andencourage uptake of loans for priorityprojects and regions

� Assess how DFIs operating in developingnations can make most impact in their hostcountries

www.devbankphil.com

Thank you

FINANCING SUSTAINABLE DEVELOPMENT GOALS: THE …DBP Policies Toward Inclusive Development Environmental and Social Policies Integrate environmental considerations in DBP operations

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