STATE-RUN Development Bank of the Philippines (DBP) and the Manila city government have signed a P10-billion 15-year term loan agreement, which will be used to fund various public infrastructure projects under the city's development plan.

'DBP is honored to be a part of the ardent efforts of the city government of Manila to scale up and ramp up social services to its residents,' said Emmanuel Herbosa, DBP president and chief executive officer, in a statement on Friday.

Under the agreement, the loan proceeds would be utilized for the construction of three 10-story buildings for Rosauro Almario Elementary School in District 1, Dr. Albert Elementary School in District 4 and Manila Science High School in District 5.

The loan will also be used to finance the three in-city vertical housing buildings to be located along San Sebastian, San Lazaro, and Pedro Gil Streets that will benefit informal settlers and urban poor communities.

Last year, the bank also extended a P5-billion five-year term loan agreement to fund Manila's various projects such as the expansion of the Ospital ng Maynila, construction of the Manila Skydeck, construction and maintenance of various health centers, and the redevelopment of the Manila Zoo including the construction of a sewage treatment plant.

Herbosa said DBP is ramping up support for local governments under its flagship Assistance for Economic and Social Development program that supports the local government units' initiatives on market infrastructure development and improvement, social welfare, health care and other public infrastructure projects that spur local economic activity.

'DBP recognizes that the LGU (local government unit) sector plays a crucial role in spreading the gains and multiplying the benefits of development,' Herbosa said.

'As a development catalyst, DBP will always support the growth of smart and sustainable communities nationwide,' Herbosa added.