LandBank inks $275M loan agreement with World Bank

Land Bank of the Philippines recently sealed a $275-million loan agreement with the World Bank for the initial implementation of the Metro Manila Wastewater Management Project (MWMP).

The project aims to address wastewater collection and treatment practices in selected areas in Metro Manila, and improve Manila Bay’s water quality.

Under the agreement, LandBank is the borrower, with the Department of Finance as the loan guarantor, while Manila Water Co. Inc. (Manila Water) and Maynilad Water Services Inc. (Maynilad) are the subsidiary borrowers and project implementers.

The loan will be divided equally between the country’s two biggest water concessionaires to support initial investments in wastewater collection and treatment, septage management in their respective concession areas.

“The lack of proper wastewater systems significantly damages the environment, especially our coastal waters, and poses a genuine threat to the health of our citizens. We are optimistic that through this project, we can mutually promote greater awareness and make way for greater collaboration in pursuit of our common vision of a cleaner, greener Metro Manila,” said LandBank president and CEO Gilda E. Pico.

The agreements were signed by Pico, Finance Undersecretary Rosalia de Leon, World Bank country director Motoo Konishi, Manila Water president and CEO Gerardo Ablaza Jr., and Maynilad chief finance officer Randolph Estrellado.

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