LBP, LGU sign accord

Davao del Norte Gov. Rodolfo del Rosario signed a $500,000 loan agreement with the Land Bank of the Philippines (LBP) represented by Joselito P. Gutierrez, vice president for Region XI for the financing of the feasibility study (FS) of the Davao Integrated Water Resource Project.

The loan was made possible through the BOT-Local Government Unit Project Infrastructure Project Development Facility (LGUPIPDF). The BOT-LGUPIPDF is a $3-million fund from the Asian Development Bank (ADB).

It formed a large part of the technical assistance agreement signed October last year by the CCPSP-BOT Center and Davao del Norte provincial government. The CCPSP-BOT Center provides technical support to LBP by screening local government projects that can be funded by this facility.

"Investors in the water sector would seriously consider this investment after we have completed the feasibility study. Early on, the local government has shown the political will and has taken the right steps that BOT projects required in order to succeed," said CCPSP-BOT Center executive director Noel Eli Kintanar when asked of the potential of the project for BOT.

The Davao Integrated Water Resource Project is a BOT undertaking of Davao del Norte province and six of its cities and municipalities; Tagum, New Corella, Asuncion, Carmen, Panabo, and Dujali. "Inadequate water supply is one of the main factors holding back the progress of Davao del Norte," said Governor del Rosario. "Through this project, six municipalities and the province are putting aside partisan politics to work together for the good of the people of Davao del Norte," he added.

The project is an integrated water supply system that will provide potable water to an estimated population of 250,000. Estimated total investment required is P1.4 billion. The project FS would be conducted by Sinclair Knight Merz, an Australian consultancy firm specializing in water, environmental, and social infrastructure projects.

The BOT-LGUPIPDF is a loan facility that can be availed of to support preparation and packaging of projects for BOT/Private Sector Participation (PSP) implementation. The BOT-PDF was established to provide implementing agencies and local government units with a facility to finance pre-investment study and tender document preparation as well as the provision of assistance up to the bidding process, bid evaluation, and contract award.