WB allots $275M for Metro Manila water improvement project

The World Bank on Wednesday announced that it had approved $275 million in financing for a project aimed at improving water quality in Metro Manila and Manila Bay.

Called the Metro Manila Wastewater Management Project (MWMP), the project would support investments of private water concessionaires Maynilad Water Services Inc. and Manila Water Company Inc. to boost the collection and treatment of wastewater from households and other establishments in the metropolis.

The Land Bank of the Philippines would make available the loan proceeds to the two water concessionaires as the borrower of the WB loan.

World Bank country director Motoo Konishi said that support for the MWMP was part of the multilateral institution’s broader program to support Metro Manila’s urban renewal, which included work on flood management, disaster risk management and slum upgrading.

According to him, inadequate sanitation imposes severe costs on the economy and population. Economic losses from inadequate sanitation nationwide—due to health costs and impact on water quality, tourism and welfare of the population—are estimated to be around 1.5 percent of gross domestic product.

“The health of poor families, especially their young children, suffers the most from lack of proper wastewater treatment facilities and poor sanitation. Projects like these are important for achieving inclusive growth,” Konishi said.

Under the project, Maynilad would invest $178.3 million in sewage treatment plants and associated wastewater conveyance systems in Quezon City, Pasay, Alabang, Muntinlupa and Valenzuela, as well as a septage treatment plant in the southern part of Metro Manila. On the other hand, Manila Water would invest $193.4 million in a sewage treatment plant and associated sewage lines covering north and south Pasig.

According to Maynilad, the “expansion and upgrade of our existing sewerage network will require a great amount of investments so we are very grateful for this loan assistance. We expect the bulk of the loan to be released next year so we can proceed with the construction and rehabilitation of our sewerage and septage treatment plants in key parts of our concession area.”

Metro Manila generates about two million cubic meters of wastewater every day. Without adequate sewerage facilities, the World Bank said that only around 17 percent of this volume is treated before being discharged into water channels in and around the metropolis which end up mostly in Manila Bay.

Manila Water and Maynilad have come up with a 25-year program for ensuring 100 percent wastewater collection and treatment for Metro Manila and this project will support their efforts, the World Bank said.