PH secures 212.7-M euro loan from World Bank for water, sanitation

The Philippine government, through the Department of Finance (DOF), has secured loan financing worth 212.7-million euro or about P14.98 billion from the World Bank – International Bank for Reconstruction and Development (WB-IBRD) to improve water security, supply, and sanitation in underserved areas in the Philippines.

In a statement on Friday, the DOF said the official development assistance (ODA) financing will support the Accelerated Water and Sanitation Project in Selected Areas (AWSPSA) to be implemented by the Department of Public Works and Highways (DPWH) and the Department of the Interior and Local Government (DILG).

The AWSPSA aims to address water security and disinfection challenges in poor and underserved areas and improve the efficiency of water supply and sanitation (WSS) services to support economic growth and mitigate environmental risks from water scarcity.

The project will include the construction of a bulk water supply system, septage treatment plant, and Water, Sanitation, and Hygiene (WASH) facilities in the islands of Bohol, Siargao, and Sulu, according to the DOF.

The Finance Department said the AWSPSA constitutes Phase 1 of the WB-IBRD's Multiphase Programmatic Approach (MPA) Water Security and Resilience in East Asia and Pacific Program.

The DOF added the MPA Program is designed to support sustained investments that increase water security and enhance resilience to water-related climate risks, providing a programmatic framework for addressing the Philippines' evolving water and sanitation needs.

"The financing comes at an opportune time and provides a significant boost to strengthen our efforts to improve water security and cleanliness. We thank the World Bank-IBRD for its continued partnership with the Philippines as we pursue reforms to deliver more reliable services to our people," said Finance Secretary Frederick Go.

The DOF said the latest financing agreement reinforces the Marcos administration's commitment to strengthen water security, improve access to clean water, upgrade and expand water infrastructure, and provide financing for WSS projects as outlined in the Philippine Development Plan 2023-2028.

The assistance will also support the government's action plan to mitigate impacts of the anticipated super El Niño, it said. — VDV, GMA News