LBP extends P450-M term loan

MANILA, Philippines - The Land Bank of the Philippines (LBP) has sealed a P450-million term loan agreement with the City Government of Danao to finance the LGU’s Bulk Water Facility in Sitio Awihao, Danao City. The amount will fund the development of the site, construction of underground structures and electrical system, water treatment plant, pump house, and transmission lines from Sitio Awihaw to Brgy. Maslog, Danao and the 13-km. transmission line from Maslog, Danao to the Metro Cebu Water District’s (MCWD) injection point in Cotcot, Liloan, Cebu.

The project is expected to address the water supply problem of Cebu City and its neighboring cities and localities. A memorandum of agreement and Water Supply Contract was signed by the City of Danao and the MCWD wherein Danao will be the biggest source of water for MCWD and will provide 24-hour water service to the constituents.

In 2005, the LBP extended financial assistance to Danao LGU for the completion of its integrated bus terminal and public market. The project has been a showcase of successful KfW Bankengruppe-funded projects.