 Premier development financial institution in the Philippines  One of two major policy banks  100% government-owned  Authorized capital stock of US$19.29-M  No government subsidy  Remits at least 50% of net income to government Development Bank of the Philippines

 Supports the development of the Philippine economy, via the provision of medium to long-term credit  On-lend to participating financial institutions using ODA funds from multilateral and bilateral agencies  Undertakes investment banking, trust services, treasury operations  Raise funds in domestic and international markets  In 2011, issued US$300-M unsecured notes, raised Tier 2 Capital of US$ M in domestic market Development Bank of the Philippines

Source: Bangko Sentral ng Pilipinas Public Statement of Condition as of December % BSP Minimum Top Ranked Philippine Bank

Source: Bangko Sentral ng Pilipinas Public Statement of Condition as of 30 September 2011 DBP Market Share: 5% Source: Bangko Sentral ng Pilipinas Public Statement of Condition as of 30 September 2011 US$94.10-M NET INCOME (2011) Top Ranked Philippine Bank

Developmental mission focused on four strategic sectors: Development Bank of the Philippines  Infrastructure and Logistics  Social Services  Environment  Micro, Small and Medium Enterprises  Commercial Lending

 Umbrella program  Master plan for developmental initiatives for the transport and logistics sector  Aligned with the Philippine Development Plan for infrastructure investments, prioritizing the creation of integrated and multimodal national transport and logistics system Connecting Rural and Urban Intermodal Systems Efficiently (CRUISE) program

 Promote rural-urban integration and physical connectivity  Support national plan to increase investments in transport infrastructure  Promote decentralization and reduce urban congestion  Accelerate economic growth particularly in high potential growth sectors of agriculture, industry services, especially tourism  Leverage limited public resources for infrastructure through Public-Private Partnerships CRUISE Objectives

 Road Transport – upgrading/paving of road network with emphasis on local roads to and from farm areas, tourism sites, economic zones, seaports, airports  Air Transport – investments in airport terminals, runways, communication and navigational facilities and equipment  Rail Transport  Light Rail – Acquisition/ upgrading of rolling stocks to address undercapacity CRUISE Lending Focus

 Heavy Rail – Manufacture of rolling stock for cargo and perishables for use in rail service along existing alignments  Water Transport – Upgrading of domestic fleet and upgrading / rehabilitation of seaport terminals, and investments in cargo handling equipment  Urban Transport – Integrated Transport Terminals (bus, jeepneys, taxis, LRT) Focus areas for lending under CRUISE

DBP is committed to the Philippine government’s infrastructure development -- PPP program, or Public- Private Partnership program  Major role in the syndication of loans and the raising of funds in the capital market  Identify, develop and implement commercially-viable infrastructure projects, by providing transaction/ financial advisory via specialized investment banking and risk evaluation services

 Water treatment  New and renewable energy  Alternative fuel  Rural power projects  Solid and hazardous waste management  Pollution control DBP Environment Program (Green Financing)

 Non-credit partnership program with communities  Identify sites for reforestation, where high-value fruit and forest trees can be planted to save mountains from erosion and reduce effects of carbon emission  38 forest projects already, covering almost 6,500 hectares DBP Forest

 Credit program for expansion, harvesting, maintenance, protection of tree plantations in private and public land covering both lowland and forest areas  Reduce susceptibility of communities to natural disasters  Expected to boost Philippine wood-based industries and assist communities improve their socio-economic conditions Tree Plantation Financing Program

 In 2009, Manila Water Company, Inc. (MWCI) and Tourism Infrastructure and Enterprise Zone Authority (TIEZA) entered into joint venture to form Boracay Island Water Company, Inc. (BIWC) to address water supply and sanitation issues  DBP on lent to privately-owned Security Bank Corp. to support additional capital expenditures for environmental projects in Boracay PPP for Boracay

 Partnership initiative has given rise to a new lending set-up on investment modality with a special co- financing structure  Majority of funds sourced from ODA-funded Philippine Water Revolving Fund  DBP and SBC share on a basis in the debt component of the US$38.16-M investment PPP for Boracay

 BWIC has also infused an equity portion amounting to US$5.62-M  Targets to serve the current 4,727 service connections and meet increasing water demand  Pipelines to be extended to allow expansion of service coverage area and provision of potable water to 1,422 additional service connections from 2010 to 2018 PPP for Boracay

 Pump stations to be upgraded, doubling their capacity  Installation of additional generator sets to complement power requirements to ensure 24/7 operations  Improvement of sanitation and sewerage conditions, including multi-media filtration system, portable treatment plants, sludge dewatering facility PPP for Boracay

 Infrastructure is a key multiplier on national competitiveness.  The Philippine government has pledged to boost infrastructure spending  Key to sustaining infrastructure spending is tapping private sector expertise and resources  Access to reasonable and reliable financing is essential

 Financing infrastructure development provides good growth opportunities.  Financing infrastructure projects contributes greatly to national development and country competitiveness.

 DBP will continue to chart its role according to the country’s needs  DBP to focus on building the infrastructures for development, where there is plenty of room for developmental interventions, where DBP can do a lot more.

DBP’s commitments is to be a catalyst in promoting others’ participation in development. Our role is to work with as many project proponents as we can. DBP will continue to work with, and through others, to attain development objectives.

Thank you.