State-owned Development Bank of the Philippines (DBP) recently received an international award for its financing program that supports the National Government’s Public Utility Vehicle Modernization Program (PUVMP), a senior official said.
DBP president and chief executive officer Emmanuel G. Herbosa said the bank won the Best Innovation in Financial Services award for its Program Assistance to Support Alternative Driving Approaches (DBP PASADA) during The Global Sustainable Finance Awards 2019 held in Karlsruhe, Germany.
“We are humbled by this award that recognizes our untiring efforts in helping the Duterte administration achieve its goal 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 profits—through the PASADA by embedding sustainability in lending and advancing the transformation to a low carbon and sustainable economy.
Established in 2017, the DBP PASADA is a special loan facility that offers reasonable terms to corporations and cooperatives looking to acquire brand new, low-emission, and fuel-efficient public utility vehicles making the program responsive to the needs of the transportation section and the National Government. The program also finances the purchase and acquisition of support facilities such as off-street garage charging stations and service centers necessary for the proper operation and maintenance of PUVs.
Herbosa said that the DBP PASADA has assisted five transport operators in the acquisition of 93 jeepney units with a total loan amount of P154.68-million. The financing program offers a fixed interest rate of 6% per annum inclusive of Gross Receipts tax for the entire term of the loan, and a loan tenor of seven years.
The Global Sustainable Finance Awards were presented to financial institutions, relevant organizations, and presidents and chief executive officers who have distinguished themselves through outstanding contributions to the field of sustainable banking and finance. The awards are presented by the European Organization for Sustainable Development, the City of Karlsruhe in Germany, and the Association of Development Financing Institutions in Asia and the Pacific.