MANILA, Philippines — State-run Land Bank of the Philippines (Landbank) has extended a P2.6-billion financing for a hydropower plant project in Bukidnon as part of the country’s efforts to shift to clean energy.

Landbank said it inked the loan agreement with Cabanglasan Hydropower Corp., a wholly owned subsidiary of Repower Energy Development Corp. (REDC).

The P2.6-billion credit assistance will partially finance the construction of a 15-megawatt hydropower plant in Bukidnon that aims to contribute in advancing the country’s climate change mitigation and adaptation efforts.

The run-of-river hydropower plant will be developed on the Pulangi River in Barangay Lumbayao in Valencia City to sustainably improve the quality and reliability of energy supply in nearby cities and towns in Bukidnon.

Upon completion in 2025, the hydropower plant is estimated to power around 130,000 households in 15 municipalities in the province.

Landbank said the stable energy supply is also expected to benefit Bukidnon’s local economy, particularly its tourism, agriculture and industrial sectors.

Landbank president and CEO Cecilia Borromeo said the bank has been collaborating with REDC over the past years toward advancing clean, sustainable, and reliable sources of renewable energy.

“We support local projects that aim to secure a safe and sustainable future for the country, as part of our broader commitment to help build sustainable and resilient communities,” Borromeo said.

REDC president Eric Peter Roxas, for his part, said the firm has brought 10 renewable energy power plants to operations, of which six are run-of-river hydropower, contributing around 50MW of clean energy to the grid in the past six years.

“We have several hydropower projects under construction and in the pipeline, which we intend to bring to operations in the near future to help the country transition into a clean renewable energy phase,” Roxas said.

As of end-October, Landbank has approved a total of P20.1 billion in loans to 56 borrowers under its renewable energy program in support of local projects that harness solar, hydro, and biomass energy sources.

The government has been emphasizing the need to bring down the country’s dependence on energy imports by developing renewable energy and indigenous sources.

Data showed that only 29 percent of the country’s current energy mix comes from renewables. The Department of Energy would like to bring it up to 35 percent by 2030 or to 50 percent by 2040, as outlined in the Renewable Energy Roadmap.