DBP, JICA provide funding for Cebu bulk water supply project

MANILA, Philippines - The bulk water supply project of the Cebu Manila Water Development Inc. (CMWD) that aims to address the gap between water demand and supply in the province, has received support from the Philippine Water Revolving Fund through a P800-million loan funded by Development Bank of the Philippines (DBP) and the Japan International Cooperation Agency (JICA).

Created through a joint investment agreement between the Cebu provincial government and CMWD, the project is the first large-scale surface water project in the province and is expected to augment the delivery of water services to the service areas of the Metropolitan Cebu Water District by the middle of this year.

In 2014 alone, according to Sachiko Takeda, senior representative of JICA, it is estimated that an additional 18 percent of the anticipated average daily demand of about 187,000 connections will be met through the project. This may serve an additional 11 percent of Cebu’s total population of about two million people.

“From a development point of view, the Cebu bulk water supply project will also contribute to the country’s attainment of the Millennium Development Goals for the water supply sector, which is to cut by half the proportion of the population that does not have access to safe drinking water,” Takeda said.

Meanwhile, the DBP shared the data by the Knowledge Center of the Water Resource Management and Development that foresee the rise in water demand in Metro Cebu by 2030.

By 2030, the “population in Metro Cebu would have increased to 2.3 percent, translating to roughly 4.3 million people, expanding the water demand to 767 million liters per day (MLD), compared to the present available water supply of 365 MLD,” said DBP president Gil Buenaventura.

“Financing projects that are aligned with the goals of the national government, such as CMWD’s, is within the priorities of DBP,” Buenaventura said.

“Once this project is completed, water availability will be assured in the targeted areas of Cebu province, Mandaue City, Lapu-Lapu City, Cordova, Consolacion, Liloan and Compostela,” he added.

The loan will support the remaining construction of facilities that is incorporated in the overall design of the bulk water supply project, namely the diversion weir intake structure, raw water pipeline, 35-MLD water treatment plant, pumping stations, water pipeline, and a reservoir with a capacity of nine MLD.

The ceremonial term loan facility signing was also attended by Buenaventura; Luis Oreta, chief finance officer and treasurer of Manila Water; Ricky Vargas, president of Metro Pacific Water Investments Corp.; Gerardo Ablaza Jr. and Virgilio Rivera, chairman and president, respectively, of CMWD; and other officials and representatives of the Cebu provincial government, DBP and the Manila Water consortium.