MANILA, Philippines - Boracay Island Water Co. Inc. has obtained a P500-million loan from the Development Bank of the Philippines and Security Bank through the Philippine Water Revolving Fund (PWRF) to finance additional capital expenditures for its environmental projects in Boracay over the next few years.
The PWRF is a collaborative undertaking of the Philippine Government, United States Agency for International Development (USAID) and the Japan International Cooperation Agency (JICA) to mobilize additional and sustainable resources to meet the country’s Millennium Development Goals.
The P500-million loan is the biggest provided by the PWRF to a private company from the water sector. In fact, Boracay Water even has an option to increase the loan up to P1 billion.
The loan facility will provide Boracay Water with the necessary financial aid and flexibility to support key projects such as network improvement and expansion to achieve 100 percent water coverage by 2014 and 100 percent sewerage coverage by 2018.
The loan will enable Boracay Water to fulfill its firm commitment to provide adequate quality water and sanitation services and support future growth and maintain environmental sustainability amidst the growing tourist inflow to the island.
Since taking over the island’s water and wastewater operations on Jan. 1, 2010, Boracay Water has exhibited successful operational performance.
The company brought down water losses significantly from 37 percent to 24 percent, increased water pressure from 15 psi to an average of 30 psi, resulting to the provision of 24/7 water supply to 96 percent of the island’s population.
Recently, Boracay Water upgraded the island’s Sewage Treatment Plant (STP) to boost wastewater treatment capacity to 250 percent (from 2.6 million liters per day to 6.5 million liters per day.)
This has allowed the company to achieve environmental compliance four years ahead of the concession target, effectively reversing the island’s water pollution challenges.
Since the STP upgrade, the treated water released from the facility to Bolabog beach has been safe for swimming and aquatic life.
Boracay Water is a public-private partnership between the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) and Ayala-led Manila Water Co. Inc.