ADB okays $126-M loan to fund Angat tunnel for better water flow

MANILA, Philippines — The Asian Development Bank (ADB) on Friday announced the approval of a $126 million loan to the Metropolitan Waterworks and Sewerage System (MWSS) to finance the construction of 15-kilometer water transmission pipeline in the capital's main dam.

In a statement, the Manila-based lender said the loan serves as additional credit for the the Angat Water Transmission Improvement Project, an undertaking meant to upgrade the flow of water in the system and thereby improve supply in Metro Manila.

Construction on the project will start this year.

“Climate change is making annual rainfall unpredictable, putting tremendous pressure on water resource use,” Vijay Padmanabhan, the lender's Southeast Asia director for urban development and water, said. 

"The Philippine government is increasing investments in clean infrastructure for environmentally sustainable water resource management across the country," Padmanabhan added.

The project is part of efforts by MWSS to rehabilitate the Umiray–Angat–Ipo dam system, which supplies about 90% of water to nearly 13 million residents in Metro Manila.

MWSS, a government-owned and -controlled corporation, owns and operates the National Capital Region's bulk water system, from which concessionaires Manila Water Company Inc. and Maynilad Water Services Inc. source, treat and distribute water to customers.

According to ADB, the new aqueduct, with a 3.6-meter diameter, will have a welded steel, concrete-coated pipe. The facility will be constructed to withstand magnitude 7.2 earthquakes, reducing the risk of a system breakdown and increasing the resiliency of NCR's water supply. 

"The aqueduct will increase the system’s water transfer capacity to 66 cubic meters per second (m3/sec) by 2025, up from 50 m3/sec in 2019," the bank said. "It will allow MWSS to retire its two oldest aqueducts and repair others through 2032."

According to ADB, the loan supplements its 2016 financing to MWSS meant to pay for the construction of a 6.3-kilometer earthquake-resilient upstream water tunnel. Construction of the tunnel is ongoing and is scheduled to be completed this month, three months ahead of schedule. — Ian Nicolas Cigaral