Manila (12 June) -- State-owned Development Bank of the Philippines (DBP) launches today new initiatives on health care, corporate governance, and the environment as part of its traditional Independence Day celebration at the DBP headquarters in Makati City.

DBP president and chief executive officer Reynaldo G. David said the Bank is launching its Sustainable Health Care Investment Program (SHCIP) that aims to upgrade the quality of health care in the country, as well as respond to the financing needs of the country's health sector.

"The SHCIP will make health care services more affordable and accessible to Filipinos by providing credit and support facilities to primary health care facilities, and health care business solution companies. It is a vital step towards fast-tracking the modernization of our hospital system," David stresses.

The program will finance projects ranging from the acquisition of health care equipment, construction of health care facilities, working capital requirement, health-related education requirements, and refinancing of existing eligible loans. DBP has funds of over P47 billion which may be tapped for said projects. The program will also tap $50 million in funding from KfW of Germany.

To formally launch the program, DBP will sign an agreement with the Department of Health, Philippine Health Insurance Corporation, Department of Interior & Local Government, and the Municipal Fund Development Office of the Department of Finance for the formation of the Health Sector Investment Advisory Committee tasked to oversee the implementation of the SHCIP.

DBP will also sign an agreement with UK-based CarbonAided Limited for the registration of a number of mini-hydro power projects under the Clean Development Mechanism (CDM) of the Kyoto Protocol. CDM registration entitles project owners to profit from the sale of carbon emission reduction credits that result from the implementation of their projects.

The projects to be registered under the CDM are the Hinubasan Minihydro Power Project in Dinagat Island; Cantingas Minihydro Power Project in Romblon; and the Sevilla Minihydro Power Project in Bohol.

David said the initiative enables the projects to generate an estimated emission reduction of 15,000 tons of CO2 a year, translating to about US$150,000 additional income to minihydro power project owners. He added that the initiative is a breakthrough for DBP, with the income generated also benefiting the host communities of the said minihydro power projects.

Meanwhile, DBP will also ink an agreement with the Institute of Corporate Directors (ICD) to further promote good governance practices in the country.

Under the agreement, DBP will work with ICD in undertaking the 2008 Corporate Governance Project. DBP will also assist ICD in the conduct of focused workshops on corporate governance for major participating financial institutions and corporations working with DBP.

DBP and ICD will also participate in the Companies Circle that promotes corporate governance in bringing about breakthrough results from overall corporate performance. DBP shall also send its newly-appointed directors and senior officers to ICD's Professional Directors Program.

DBP has also been tapped as lead convenor for a specialized corporate governance circle of government-owned and controlled corporations (GOCCs) and government financial institutions (GFIs). The corporate governance circle consists of the GOCCs and GFIs that scored the highest in the 2007 Corporate Governance Scorecard Project. These include Land Bank of the Philippines, National Transmission Corporation, National Electrification Administration, Bases Conversion and Development Authority, Development Academy of the Philippines, Philippine Deposit Insurance Corporation, Philippine Export-Import Credit Agency, Philippine Health Insurance Corporation, and Philippine National Oil Company.

DBP will also ink an agreement with the Institute of Solidarity in Asia (ISA) for the improvement of governance of local government units (LGUs). The agreement will help LGUs with commendable good governance practices gain easy access to external financing for their developmental endeavors. The two institutions will also cooperate in the design and execution of a youth governance program to embed and nurture the ideals of governance, ethics, and social responsibility.

ADFIAP Awards

On the same occasion, the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) will present the Outstanding CEO of the Year Award to David and the Most Outstanding Human Resource Development Project Award to the DBP Management Associates Program (MAP).

David was unanimously adjudged Outstanding CEO of the Year in recognition of his dynamic leadership and performance at the helm of DBP. He was particularly cited for leading the Bank in the delicate balancing act of accomplishing its development mandate while boosting its financial strength to record levels as it achieved a net income of US$95-million and US$105-million in 2006 and 2007, respectively. DBP also contributes one of the biggest shares in dividends to the government by state financial institutions.