Nenita H.
Veran
First
Vice-President
Program Lending Group,
Landbank of the Philippines
nveran@mail.landbank.com
Finance and the Environment
have increasingly become interlinked.
This is due to the fact that provision of financial support plays a
significant role in the success of environmental programs. Two government banks, namely, LANDBANK
and DBP, have been at the forefront of meeting the financing needs of
environmental endeavors.
The active involvement of
LANDBANK in the environment sector started in 1991 when compliance with
environmental rules and regulations was made part of the loan evaluation process
for projects under the World Bank-funded Countryside Loan Fund I (CLF I). After CLF I, LANDBANK moved on to handle
bigger challenges in environmental protection by acting as co-implementing
agency and financial agent for the WB-Philippine Ozone Depleting Substances
(ODS) Phaseout Project. LANDBANK
also implemented various foreign-assisted relending facilities for projects
which are supportive of environmental protection and sustainable
development. These include among
others, cleaner production activities.
LANDBANK does not only
finance environmental projects but also provide technical assistance through
environmental trainings and technical services to Participating Financial
Institutions (PFIs) and subborrowers under CLF programs. LANDBANK has formalized its networking
with DENR through a Memorandum of Agreement (MOA) for the establishment of
stronger institutional linkages in the field of environmental
protection.
The Bank, likewise,
implements in-house environmental programs akin to cleaner production
initiatives of the manufacturing and industrial sector as well as the agri-agro
and services sectors. Since 1997,
the Bank has joined the anti-smoke belching campaign to combat air pollution
brought about by indiscriminate smoke belching. Further, a comprehensive solid waste
management program was launched in 1999.
The Bank has also initiated the formulation of an environmental
management system (EMS) in accordance with the guidelines set by ISO
14001.
It is envisaged that through
various foras such as the APRCP, information on financing for environmental
activities would be widely disseminated and LANDBANK is optimistic that private
enterprises and participating banks will actively access the available financing
windows for such activities and projects.
(for
a copy of the full manuscript, please get in touch directly with the
author)