Foreign Affairs Secretary Delia Albert and German Ambassador Herbert Jess signed the agreement in Manila last week.
Under the accord, the German government will provide 15.5 million euros (approximately P1 billion) to finance two projects intended to improve drinking water in the Visayas and Mindanao.
Expected to be completed in 2011, the project involves the installation of water supply systems in the Visayas and Mindanao.
Since the local governments are the ones building the water supply systems, their officials and employees will undergo capability-building activities to ensure that the facilities are properly run and maintained and sustainably used.
The areas where the water systems will be installed are still being identified.
As a multiplier effect, the provision of ample water supply is expected to improve health projects, including medical and equipment procurement, as well as capability-building and training, and the promotion of support programs for local governments and non-government organizations.
The health sector reform agenda also aims to improve the health infrastructure and medical services in Eastern Visayas.
The signing of the agreement was the result of last year’s bilateral negotiations where the German government committed $91.2 million for its 2003-2004 cooperation agreement with the Philippines.
Of the amount, $30.44 million is considered a new commitment, while the rest consists of reprogrammed funds that were unutilized due to reduction in project scope, loan cancellation or non-viability of certain projects.
The German government expanded its financing or loan package due to the budgetary constraints of the Philippine government.
The German-Philippine cooperation gives priority to economic reform, health, and water and waste management. — Freeman News Service