State-owned Development Bank of the Philippines (DBP) seeks to boost the national government’s efforts to support the local aquaculture industry and commitment to help ensure food security and productivity in the country through its latest partnership with the local subsidiary of a leading agro-industrial and food conglomerate, a top official said.
DBP President and Chief Executive Officer Michael O. de Jesus said the bank’s partnership with Charoen Pokphand Foods Philippines Corporation (CP Foods) is expected to enhance the implementation of DBP’s latest financing facility, the Aquaculture Value Chain Financing Program.
He added the agreement is in line with President Ferdinand Marcos Jr.’s thrust to improve agricultural productivity and ramp up modernization efforts of the sector.
“This partnership is in support of the Department of Agriculture’s commitment to intensify the fishery sector by increasing the local shrimp production to 276,320 tons from 2023 to 2027,” de Jesus said.
He said these pipeline projects to be financed under this agreement are estimated at P7 billion for the current year.
The DBP CEO said the bank would be providing CP Foods with the necessary credit assistance including working capital requirements, fixed assets acquisition, installation of other support facilities, pond development or improvement, and establishment of post-harvest facilities.
He said these projects cover a range of aquaculture-related activities supporting small and micro enterprises and cooperatives with a minimum funding of P5 million but not exceeding P15M or up to 90 percent of the total project cost, and medium-to-large enterprises with minimum funding of P15M or up to 70 percent of the total project cost.
“We are confident that CP Foods’ decades-long aquaculture expertise will greatly contribute towards our collective goal of a more competitive and sustainable Philippine aquaculture,” de Jesus said.
DBP is the eighth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; environment; social services and community development.
CP Foods is a subsidiary of the Thailand-based Charoen Pokphand Foods Public Company Limited which operates vertically integrated agro-industrial and food businesses harnessing its investments and partnerships in 17 countries worldwide. – Press release
July 27, 2024
