BSP approves 272-million euro loan for rehabilitation of Laguna Lake

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has given the Department of Environment and Natural Resources (DENR) the approval to obtain a 272.39-million euro loan from Fortis Bank of Belgium to bankroll the rehabilitation project of Laguna Lake.

BSP Governor Amando M. Tetangco Jr. said the central bank has approved in principle the loan that would finance the Japanese yen equivalent of the proposed loan guaranteed by the National Government.

Tetangco said the purpose of the project is to improve the ecological and environmental quality of Laguna Lake.

The project, he added, would also help improve Laguna Lake’s capacity as catch basin to reduce flooding in nearby towns and cities.

The BSP chief said the loan has a repayment period of 2.5 years with grace period.

Last October, the National Economic and Development Authority (NEDA) has approved a budget of P18.5 billion for the Laguna de Bay Rehabilitation Project

The project  seeks to put order around the Philippines’ biggest lake and solve the problem of flooding in nearby towns and cities through the dredging of the Laguna Lake. The lake is heavily silted and blamed for the perennial flooding in certain parts of Metro Manila and in at least four provinces.

The project would begin next year and end in 2012. It would also include the creation of a Laguna Ferry Systems wherein 12 ferry stations are to be constructed in several sites. It would also involve reclaiming lakeshore areas for wastewater treatment facilities, and development of ports and marinas.

Five areas are proposed for reclamation while four sewage treatment plants will be established within the lake, which borders several provinces including Cavite, Batangas, Laguna, and Rizal.

Fortis Bank is part of the European banking and insurance giant Fortis group and is Belgium’s biggest financial services firm.