The Asian Development Bank (ADB) has approved a $60m loan to supports water and sanitation infrastructure outside Manila.
The loan will help water service providers outside Metro Manila enhance water and sanitation assets required to lower water-borne diseases by increasing access to safe water and reducing environmental pollution.
The loan will help enable the Local Water Utilities Administration (LWUA) to meet its mandate of supporting water districts.
Apart from this loan, ABD will also administer cofinancing grants of up to $3m from the Urban Environmental Infrastructure Fund, supported by the Government of Sweden and Water Financing Partnership Facility.
The facility will provide subsidies for sanitation facilities and capacity building support for LWUA, water districts and local governments.
ADB Southeast Asia Department senior finance specialist Stella Tansengco-Schapero said: "While Metro Manila’s residents now enjoy much better piped water supply and improved sanitation, millions of those living in provincial areas are potentially exposed to water-related diseases due to persistent underinvestment in water and sanitation."
"LWUA will on-lend the funds to water districts for water network upgrades and extensions and new sanitation systems. The project will also help raise the capacity of LWUA, water districts and other government officials to address planning, financial and management gaps."
ADB said the supply of water and sanitation outside Manila is fragmented and suffers from weak planning, monitoring and investment.
The support given to LWUA will provide long-term loans and technical assistance to water districts, expanding coverage, cut non-revenue water levels.
ADB has worked with LWUA since the 1970s, offering it with loans for six investment projects and funding five technical assistance projects for strengthening district water providers.
The project, which will include Government of the Philippines counterpart funding, will run for up to six years with planned completion by April 2022.