Philippines signs €212.7 million World Bank loan for water projects in Bohol, Siargao, Jolo
The Philippines has signed a €212.7 million (P14.9 billion) loan with the World Bank to finance water supply and sanitation projects in Bohol, Siargao and Jolo. The agreement, signed by Finance Secretary Frederick D. Go and World Bank Division Director Zafer Mustafaoğlu, supports the first phase of
The Philippines has signed a €212.7-million (around P14.9 billion) loan agreement with the World Bank to finance water supply and sanitation projects in Bohol, Siargao and Jolo, according to a document released by the multilateral lender.
“The objectives of the project are to increase access to safely managed water supply and sanitation services and improve the performance of water service providers in selected areas of the Philippines,” the World Bank said in a loan agreement document dated Oct. 6. The loan agreement supports the first phase of the Philippines Accelerated Water and Sanitation Project in Selected Areas. It was signed by Finance Secretary Frederick D. Go on Oct. 6 and World Bank Division Director Zafer Mustafaoğlu on Sept. 23.
In Bohol, the project will support the development of water supply infrastructure and watershed protection measures in the Loboc Cluster. These include a bulk water supply system sourced from the Loboc River, rehabilitation and expansion of water distribution networks, and improvements to water, sanitation and hygiene (WASH) facilities in public schools, daycare centers, health centers and other institutions.
In Surigao del Norte, the project will support the construction of water supply infrastructure in selected municipalities on Siargao Island. It will also finance fecal sludge management facilities, septage collection and transport equipment, and improvements to WASH facilities in public schools and spaces across the island. In Sulu, the project will support the construction of water supply systems in Jolo and barangays in Indanan and Patikul, alongside WASH facilities in public schools and institutions in Jolo.
The project will also support institutional reforms and capacity-building for local governments and water service providers in Bohol, Siargao and Jolo to improve the management and sustainability of climate-resilient water and sanitation services. This includes strengthening governance, financial planning, tariff setting and infrastructure maintenance, alongside efforts to promote gender inclusion.
Under the agreement, the Department of Public Works and Highways will implement infrastructure investments and provide technical assistance, while the Department of the Interior and Local Government will oversee institutional reforms and capacity-building activities.
The loan carries a variable interest rate based on a reference rate plus a variable spread, a front-end fee equivalent to 0.25% of the loan amount, and an annual commitment charge of 0.25% on the undisbursed balance. Principal repayments will begin on April 15, 2037 and continue until April 15, 2055, according to the agreement. The loan’s closing date is set for Dec. 31, 2031. The agreement also requires the DPWH and DILG to adopt a project operations manual acceptable to the World Bank before the loan can become effective. The project forms part of the World Bank’s multiphase Water Security and Resilience in the East Asia and Pacific Region Program.
