The loan will be used to develop a new 8MW Asiga hydropower plant in Santiago town that is expected to help stabilize the energy supply in Caraga region.

The new plant is also expected to reduce carbon dioxide emissions of about 35,575.41 metric tons per year.

Asiga plant is part of the Philippine government’s strategy to expand the country’s renewable portfolio and reduce greenhouse gas emissions.

Additionally, the new project is anticipated to create about 300 jobs during two-year construction period as well as about 25 permanent positions following its completion.