World Bank extends $275-million loan for wastewater management

MANILA, Philippines - The World Bank has extended a $275-million loan to improve wastewater collection and treatment practices in Metro Manila and enhance the water quality of Manila Bay.

Under the Metro Manila Wastewater Management Project (MWMP), the loan will support investments of the two water concessionaires – Manila Water Co. Inc. and Maynilad Water Services Inc. – to increase collection and treatment of wastewater from households and other establishments in the metropolis.

As the borrower of the World Bank loan, the Land Bank of the Philippines will make available the financing proceeds to the two water concessionaires.

The project has two components.

First, Manila Water would tap into the loan to help finance its $193.4-million investment for a sewage treatment plant and associated sewage lines in Pasig City.

Then, Maynilad will tap into the financing for its sewage treatment plants and associated wastewater conveyance systems in Quezon City, Pasay, Alabang, Muntinlupa, Valenzuela, and a septage treatment plant in the southern part of Metro Manila worth $178.3 million.

Finance Secretary Cesar Purisima, in a statement, said the project will boost the country’s efforts to clean up the bodies of water around Metro Manila.

“Water quality improvements in rivers and other water channels in and around the metropolis, including Laguna de Bay and Manila Bay, will help to improve the environment, and eventually enhance recreational and tourism opportunities,” Purisima said.

The World Bank noted that Metro Manila generates about two million cubic meters of wastewater every day. But only 17 percent of this volume gets treated before being discharged into water channels in and around the metropolis, which end up mostly in Manila Bay.

To address this problem, both Manila Water and Maynilad have planned a 25-year program for ensuring 100-percent wastewater collection and treatment for Metro Manila, and this project will support their efforts. 

With a total population of almost 12 million people, Metro Manila is located in the Laguna Lake-Pasig River-Manila Bay corridor. Interconnected with more than 30 tributaries, most of these bodies of water are highly polluted.

World Bank country director Motoo Konishi explained that the project is part of its broader program of support for Metro Manila urban renewal which includes work on flood management disaster risk management, and slum upgrading.

Inadequate sanitation imposes severe costs on the economy and the population. Economic losses from inadequate sanitation nationwide-due to health costs and impacts on water quality, tourism, and welfare of the population-are estimated to be around 1.5 percent of gross domestic product (GDP).

“The health of poor families, especially their young children, suffers the most from lack of proper wastewater treatment facilities and poor sanitation. Projects like these are important for achieving inclusive growth,” Konishi added.