FINANCING SUSTAINABLE DEVELOPMENT GOALS: THE …DBP Policies Toward Inclusive Development...
Transcript of FINANCING SUSTAINABLE DEVELOPMENT GOALS: THE …DBP Policies Toward Inclusive Development...
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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
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� 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
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� 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
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� 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
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� Lending
� Branch Banking
� E-Banking Solutions
� Financial Advisory
GENERAL PROGRAMS OF THE BANK
� Corporate Social Responsibility
� Corporate Governance
� Training of DBPEmployees
� Partnership withBilateral Institutions
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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
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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
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Sustainable Development Goals (SDGs)
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� 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)
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� 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
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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
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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
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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
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� 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
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� 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
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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
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Infrastructure and Logistics
Environment Initiatives
Social Services & Community Development
Micro, Small and Medium Enterprises
Priority Development Thrusts
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(Infrastructure and Logistics
DBP Financing Supporting SDGs
# of Borrowers
Approved Amount Outstanding Balance
150 USD 361M USD 285M
As of March 31, 2017
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Approved Amount
USD 746M
# of Borrowers
152
Outstanding Balance
USD 414MAs of March 31, 2017
DBP Financing Supporting SDGs
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# of Borrowers
Approved Amount Outstanding Balance
90 USD 603M USD 347MAs of March 31, 2017
DBP Financing Supporting SDGs
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# of Borrowers
Approved Amount Outstanding Balance
62 USD 1,011M USD 747MAs of March 31, 2017
DBP Financing Supporting SDGs
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# of Borrowers
Approved Amount Outstanding Balance
126 USD 229M USD 167MAs of March 31, 2017
DBP Financing Supporting SDGs
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# of Borrowers
Approved Amount Outstanding Balance
123 USD 85M USD 59MAs of March 31, 2017
DBP Financing Supporting SDGs
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# of Borrowers
Approved Amount Outstanding Balance
139 USD 253M USD 170MAs of March 31, 2017
DBP Financing Supporting SDGs
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# of Borrowers
Approved Amount
Outstanding Balance
1,051 USD 215M USD 143MAs of March 31, 2017
DBP Financing Supporting SDGs
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# of Borrowers
Approved Amount Outstanding Balance
396 USD 1,078M USD 776MAs of March 31, 2017
DBP Financing Supporting SDGs
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# of Projects Approved Amount Outstanding Balance
4 USD 1.2M USD 1.1MAs of March 31, 2017
DBP Financing Supporting SDGs
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� 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
DBP Financing Supporting SDGs
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� 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:
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� Integrated Resource Recovery 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
SDG 11 - Sustainable Cities and Communities
Centerpiece DBP Project:
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� Integrated Resource Recovery Project
� 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
SDG 11 - Sustainable Cities and Communities
Centerpiece DBP Project:
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The Way Forward
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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
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