"Our programs are productive, sustainable and responsive initiatives that LGUs can employ for their respective locales," DBP President and Chief Executive Officer Reynaldo G. David told Institute for Solidarity in Asia Learning Institute for LGUs gathering.

David underscored the importance DBP gives to LGUs, being "the major and critical pillars in national development," thus "our development priorities are perfectly in sync with LGU functions."

In perking-up the appetite of LGUs to do their share in environmental preservation, David disclosed DBP under the program, has approved the refinancing of about P3.9- billion worth of loans of 11 water districts arranged by Local Water Utilities Administration (LWUA), incurred at the time of high interest rate regime.

The restructured loans, which falls environmental and management window that include provision of power and water services, now carry interest rates of between 9.0 percent and 9.5 percent against the 13 percent to 14.5 percent original yield.

Among the beneficiaries of the refinancing were Albay, Romblon, Leyte, Quezon and Mindoro Oriental.

"Our refinancing at lower rates general substantial savings, which are then, directed to additional connections and reductions of their non-revenue water, resulting in a more efficient and more profitable water distribution," stressed David.

LWUA, likewise, benefited from the refinancing as the government-owned and controlled corporation is able to channel the liquidity generated to fund other missionary water districts.

"The economics of the deal is such that it is a winwin situation for everyone," pointed out David, adding that DBP is currently evaluating an additional P4.3 billion in prospective loans for 24 LGU borrowers.

In the pipleline is another P6.4 billion for 70 prospective LGU projects.

Likewise, the DBP official said the bank can finance industrial pollution prevention and reduction projects as well as projects involving clean alternative fuels as its contribution environmental preservation awareness program in the light of the global warming phenomenon.

Under this, LGUs can avail of funding from DBP for solid waste management, sanitary landfill, materials recovery facilities/composting facilities and waste collection.

As of end December 2007, total exposure of DBP to some 205 LGU-borrowers stood at P13 billion.