The Development Bank of the Philippines is lending P1.4 billion to fund 14 transport and logistics projects under its Connecting Rural and Urban Intermodal Systems Efficiently (CRUISE) initiative.
The projects involve construction of roads as well as set up of transport, packaging, distribution and cold chain facilities.
A total of 31 other project proposals worth P2.6 billion are also being studied and P705 million more prospective projects in the pipeline.
CRUISE has a total budget of P22 billion.
The construction of municipal roads in Batangas worth P380 million is the biggest among the approved CRUISE projects. Other projects are located in Isabela, Nueva Ecija, Bataan, Batangas, and Sorsogon. Cebu, Negros Oriental, Negros Occidental, Eastern Samar, Agusan del Norte, Agusan del Sur and Surigao del Sur.
Also approved were loan applications worth P144 million for two private sector initiatives.
Under evaluation is a project pushed by a government agency in Bohol and a P428-million vessel purchase proposal by a private operator.
A private entity in the road and road maintenance business is also applying for a P500-million loan.
A few years ago, DBP launched a similar initiative aimed at spurring economic growth in the countryside, the P20-billion Sustainable Logistics Development Project.
The project came with three features: the Road Ro-Ro Terminal System to support the Strong Republic Nautical Highway project of the former Arroyo administration, the Grains Highway designed to reduce spillage in transporting goods; and the Cold Storage.
Much of the funding for the Sustainable Logistics Development Project remains untouched due to its stringent collateral requirements and high interest rates.
An even much earlier DBP initiative, the Domestic Shipping Development program, also met with little success also as a result of strict loan requirements. In the end, shipping owners overlooked the DBP loan offer and opted for imported second-hand vessels.
Work In Progress by Idea go
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