QUEZON CITY–State-owned Development Bank of the Philippines (DBP) and the National Electrification Administration (NEA) have signed a Memorandum of Agreement (MOA) to co-finance the capital expenditure requirements and renewable energy projects of electric cooperatives in the country.

DBP president and chief executive officer Francisco F. Del Rosario, Jr. said the partnership gives the bank an opportunity to pursue rural electrification and renewable energy development through electric cooperatives, while helping the national government attain its electrification target in the Philippine Development Plan 2011-2016.

“DBP will always be ready to provide electric cooperatives with long-term funding for their capital requirements so that they can increase their capacity and improve their services, especially for their consumers in the countryside,” Del Rosario said.

Under the Philippine Development Plan, the country will energize 90 percent of the Filipino households.

Del Rosario said through the DBP’s capital expenditure financing system losses of electric cooperatives can be reduced and consequently lower the cost of electricity.

The agreement will also allow NEA to boost its support for electric cooperatives and the development of renewable energy projects. The loan requirements of electric cooperatives will be co-financed by NEA and DBP through any of its Official Development Assistance funds.