Corporate Objectives

The PDCenter is a joint-venture of the Nederlandse Financierings Maatschappij voor Ontwikkelingsladen NV (FMO) and Planters Development Bank (PDB). The PDCenter aims to strengthen the institutional delivery of credit and assistance to small and medium enterprises (SMEs) through training and consultancy. It combines the more than four decade experience of Plantersbank in SME financing and the international expertise of FMO in development financing. The PDCenter is a registered consulting firm of the Asian Development Bank.

Rationale for the PDCenter

Small and medium enterprises (SMEs) have always been at the forefront of economic growth and development:

     In the Philippines, they constitute 90% of all manufacturing firms; and
     They provide employment opportunities, production inputs and ancillary services to the larger        industrial sector.

Recognizing the importance of this sector, various institutional support have been provided. Yet despite the presence of extensive support services and official encouragement, the growth of SMEs in many countries have gone untapped simply because,

The financial system prioritizes the larger commercial establishments over the SMEs; and
The mounting difficulties and risks in SME financing serve to discourage the commercial banks from delivering adequate financial services.

These factors combined have effectively stymied the flow of financial resources into the SME sector.

Private credit channels neglect SMEs in many developing countries. This problem is compounded by the inability of government financial institutions to respond adequately to market signals, leading to the depletion of funds and subsidizing of inefficient enterprises.

At the core of this credit problem is the apparent failure of traditional financial institutions to appreciate and understand the nature and operations of SMEs and to tailor their services accordingly. With proper training and exposure to SME financing, many financial institutions would be better equipped to reorient their operations.

Unfortunately, most of the programs offered fail to provide their participants the opportunity to apply the lessons under actual conditions. Indeed, there is a dire need for a “hands-on” type of learning. It is this need which the PDB-FMO Development Center (PDCenter) aims to address in cooperation with its mother institutions, the Planters Development Bank (PDB). Plantersbank is the largest private development bank in the Philippines and it enjoys the confidence of the three leading development financial institutions in the world, the Asian Development Bank (ADB), the Netherlands Development Finance Company (FMO) and the International Finance Corporation (IFC), as its institutional shareholders.

Major Projects Undertaken (As of December 2005)

A. Consultancy Projects

Savings Mobilization Project for Cambodia Entrepreneur Building (CEB) Ltd. Under the sponsorship of ShoreCap Exchange (SCE). September 2005 – March 2006.

Strengthening the Human Resource Department of Cambodia Entrepreneur Building (CEB) Ltd. Under the sponsorship of ShoreCap Exchange (SCE). September 2005 – March 2006.

Risk Management Advisory for the Restructuring Program of Agrani Bank in Bangladesh under a World Bank (WB) Financial Sector Adjustment Project as implemented by PricewatershouseCoopers (HK). January 2005 – December 2008.

Bank Advisory Services for FS of Micronesia Development Bank (FSMDB) under a loan for Private Sector Development Project (PSDP) of Asian Development Bank (ADB). February 2004 – December 2005.

Case Studies on Six (6) Leading MFIs & Small Business Banks in South and Southeast Asia and Design and Delivery of a Small Business (SB) Lending Training Program to Lenders of Small Business banks in Developing and Emerging Economies for ShoreCap Exchange International. June – September 2005.

B. Training Projects

Training the Trainers Workshop on FX Risk Management for Bangladesh Bank (Central Bank) and SEDF. Dhaka, Bangladesh. March 12-24, 2005.

National SME Program for Cambodia. In collaboration with ADFIAP and the Rural Development Bank of Cambodia. Phnom Penh, Cambodia. May 30 – June 3, 2005.

Small Business Credit Training for ShoreCap Exchange International. Makati City, Philippines. September 12 –16, 2005.

Study Visit Program for Cambodia Entrepreneur Building (CEB) Limited. Makati City, Philippines. September 19 – 20, 2005.

The following development banks and financial institutions have participated in the various training programs conducted by PDCenter on project appraisal, project monitoring and supervision and attachment trainings:

- Planters Development Bank
- Small Business Finance Corporation (Pakistan)
- Tonga Development Bank (TDB)
- International Finance Corporation of Thailand (IFCT)
- National Development Bank (NDB) of Sri Lanka
- Network Leasing of Pakistan
- Nepal Industrial Development Corporation (NIDC)
- Bank of Khyber
- Sampath Bank of Sri Lanka
- National Investment Bank, Ghana
- Bhutan Development Finance Corporation
- China Agricultural Development Trust & Investment Corporation (CADTIC)
- Federated States of Micronesia Development Bank
- Hanoi Building Bank (Habubank)
- Saigon Thuong Tin Commercial Bank (SACOMBANK)
- Fiji Development Bank
- Association of Banks in Cambodia (20 commercial banks)