DBP sets aside P5 billion for lending to water sector

MANILA, Philippines - The Development Bank of the Philippines (DBP) is setting aside P5 billion as initial financing aimed at providing safe, potable and affordable water supply to waterless areas.

DBP president and chief executive officer Francisco F. del Rosario Jr. said that the Financing Program for the Water Sector (FPWS) is in line with its key thrust of promoting environmental protection and sustainable development particulary the sustainability of the country’s water resources.

“The FPWS will help increase the number of households with sustainable access to safe and affordable drinking water and enable local government units, water districts, and private water service providers to initiate, improve and sustain water supply services,” Del Rosario added.

The program is also designed to assist the National Government in its commitment to the Millennium Development Goal (MDG) of attaining 86.9 percent of the population with access to safe water by 2015. The initial P5 billion for the program will assist 498 waterless municipalities, 780 water districts operating below 50 percent service coverage and other water service providers with below 50 percent service coverage.

Currently, DBP has P1.2 billion worth of pipeline projects, the bulk of which will assist projects in the provinces of Ilocos Norte, Ilocos Sur, and La Union in Region 1; Aurora, Bulacan, Nueva Ecija, Tarlac, and Zambales in Region 3; Batangas, Cavite, Laguna, Quezon, Rizal, Romblon, and Occidental Mindoro in Region 4; and Western Samar and Leyte in Region 8.

The government financial institution will undertake continuous coordination with government agencies involved in the project such as the Local Water Utilities Agency (LWUA), National Anti-Poverty Commission (NAPC), and the Department of Interior and Local Government (DILG) to ensure the effective implementation of the program.

Non-operational water districts or those operating below 50 percent service coverage, local government units (LGUs) without level three water supply system or with level three water supply system but with less than service coverage, and participating financial institutions and microfinance institutions are eligible to borrow under this facility.

The program will fund the source development, construction, expansion, rehabilitation and improvement of level three or two water supply projects. Level two is defined as communal or public faucets at strategic locations in the community while level three is a piped connection to households and commercial establishments.

The program will also promote the efficient use of water resources and climate change technologies such as the development of alternative water impounding areas and rain collection system.