The Asian Infrastructure Investment Bank (AIIB) has committed about USD200 million in potential financing for a Metro Manila “Sponge City” project designed to strengthen the capital region’s defenses against increasingly severe flooding.
Metropolitan Manila Development Authority (MMDA) Chairman Romando Artes said the proposed project is undergoing a feasibility study, with AIIB providing counterpart funding as the government explores infrastructure that can absorb, retain, and manage stormwater during heavy rainfall.
“They committed $200 million,” Artes said, noting that AIIB has previously worked with the World Bank on the Metro Manila Flood Management Project.
The Sponge City program is intended to complement existing flood-control infrastructure, including pumping stations, as heavier downpours increasingly test conventional drainage systems.
The initiative initially covers 39 potential sites across Metro Manila, with five identified as priorities. These include areas around Miriam College, Camp Aguinaldo, Rizal Memorial Sports Complex, Rajah Sulayman Park, and Remedios Circle, as well as a site at the University of the Philippines.
Implementation will depend on the availability and timing of financing, Artes said.
The MMDA is targeting completion of preparatory work that could allow the first projects to move forward in 2027.
“The timetable will depend on the availability of the budget,” Artes said, adding that the agency could complete priority interventions within the year if funding is secured early enough.
The initiative marks a shift toward climate-resilient urban infrastructure that works with natural water-management principles, rather than relying solely on traditional flood-control structures.
For Metro Manila, the concept is straightforward: give rainwater more places to go before it becomes floodwater in the streets.





