P15-B World Bank loan to boost water access

The Philippines has secured nearly P15 billion in World Bank financing to expand clean water and sanitation services in underserved communities, as growing climate risks heighten concerns over water security.

The Department of Finance (DOF) said the EUR212.7-million (P14.98-billion) financing from the World Bank’s International Bank for Reconstruction and Development will fund the Accelerated Water and Sanitation Project in Selected Areas (AWSPSA), targeting vulnerable communities in Bohol, Siargao and Sulu.

The project will support the construction of a bulk water supply system, a septage treatment plant and water, sanitation and hygiene (WASH) facilities, addressing gaps in basic services that affect public health, local livelihoods and environmental quality.

Beyond improving household access to safe water, the investments could help communities sustain economic activity and reduce pollution risks linked to inadequate sanitation. However, the project’s broader impact will depend on timely implementation, effective local coordination and the long-term operation and maintenance of the facilities.

Finance Secretary Frederick Go said the financing would strengthen government efforts to improve water security and sanitation.

“The financing comes at an opportune time and provides a significant boost to strengthen our efforts to improve water security and cleanliness,” Go said.

The Department of Public Works and Highways and the Department of the Interior and Local Government will oversee implementation, placing a premium on coordination between national agencies and local communities to translate funding into reliable services.

The initiative marks the first phase of the World Bank’s broader Water Security and Resilience in East Asia and Pacific Program, which backs long-term investments in water infrastructure and climate resilience.

It also aligns with the Marcos administration’s Philippine Development Plan 2023–2028 and efforts to prepare for the potential effects of a super El Niño, which could intensify water shortages in vulnerable areas.

The financing comes as the country faces the dual challenge of closing longstanding infrastructure gaps and making water systems more resilient to climate-related disruptions.

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