WB approves $10-M loan for Laguna de Bay rehabilitation

The World Bank has approved a $10-million loan for the Philippines to help finance a project intended to improve the environmental quality of Laguna de Bay and its watershed.

The Laguna de Bay Institutional Strengthening and Community Participation (LISCOP) Project entails the establishment of solid waste management facilities, treatment of wastewater and improvement of local drainage and flood control, all of which are intended to reduce pollution in the lake and rehabilitate the watershed.

The project will be implemented by various concerned local government units.

The new $10-million loan is another funding support following the previous $10-million financing for the same project released in 2004. Half of the original loan came from the World Bank, while the other half came from the government of Netherlands.

According to the Laguna Lake Development Authority (LLDA), the first funding support already led to substantial gains involving the enhancement of the environmental quality of the lake. He said, however, that some more funding would be required to sustain efforts at reducing pollution in the lake and improving its environmental quality.

Rodrigo Cabrera, LLDA general manager, said in a joint press release with the World Bank that with LISCOP, 23 out of the 41 open dumps operated by local governments have so far been upgraded into well-managed solid waste management facilities. This was made possible through the establishment of material recovery facilities (MRF), composting facilities, and sanitary landfill,” he said.

The project also made possible the installation of wastewater treatment systems for slaughterhouses in concerned localities, thereby addressing problems related to pollution of the lake by these facilities.

“Laguna de Bay performs vital uses for Metro Manila and surrounding areas for fisheries, as source of water for irrigation, power generation, industrial cooling, recreation, domestic use, environmental services and, most importantly, as the future source of water supply for Metro Manila,” Cabrera said.

“With its economic and ecological significance, it is very important that we manage this valuable natural resource in a sustainable way,” he added.

Cabrera said the project likewise helped enhance the regulatory capability of LLDA, particularly through funding initiatives that modernized its systems.

The Laguna de Bay region encompasses the whole provinces of Rizal and Laguna, the towns of Tanauan, Sto. Tomas and Malvar in Batangas, the towns of Silang, GMA and Carmona in Cavite; the City of Tagaytay in Cavite, Lucban in Quezon province, the cities of Marikina, Pasig, Taguig, Muntinlupa, Pasay, Caloocan, Quezon, Manila, and the town of Pateros in Metro Manila.

The region is estimated to be inhabited by 13.6 million and to have an estimated population growth rate of 2.76 a year.

Bert Hofman, country director of the World Bank for the Philippines, was quoted in the same press release as saying that the funding of the project was consistent with the objective of the multilateral lending institution of helping finance development projects, including those that concern the environment.

Amid the worsening problem of climate change, developmental lenders like the World Bank have put more emphasis on environment-related projects and programs in their allocation of funding assistance especially to low-income and developing countries.

The Philippines is cited as one of the countries most vulnerable to climate change, consequences of which include strong typhoons, given its geographic location.

Hofman said improving the environmental quality of the lake would have important impact on the economic life of people living in the Laguna de Bay region.

“Over the longer term, improving the water quality of the Laguna de Bay would lead to significant increases in well being and incomes for the many poor people who depend upon the lake for livelihood such as fishing, eco-tourism and irrigation. It would also assure Metro Manilans of a clean, potable and adequate supply of drinking water,” Hofman said.

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