BSP okays DENR plan to borrow P272 million for Laguna Lake rehab

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

BSP Deputy Governor Diwa Guinigundo said the central bank’s Monetary Board has given its final approval on the loan that would finance the Japanese yen equivalent of the proposed loan guaranteed by the National Government.

The purpose of the project is to improve the ecological and environmental quality of Laguna Lake in order to restore its life support system and at the same time provide impetus to the socio-economic development of the region.

It would also improve the capacity of the lake as a catch basin to reduce flooding in the adjacent towns and cities.

The BSP official said the loan is payable in 12.5 years with a grace period of 2.5 years.

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.