ADB approves $126 million loan to MWSS

MANILA, Philippines — The Asian Development Bank (ADB) has approved a $126 million loan to the Metropolitan Waterworks and Sewerage System (MWSS) as additional financing for its Angat Water Transmission Improvement Project.

Specifically, the loan will support the construction of a 15-kilometer water transmission pipeline aimed at improving water supply in Metro Manila.

The Angat Water Transmission Improvement Project, which will strengthen the downstream transmission capacity, is part of the MWSS effort to rehabilitate the Umiray-Angat-Ipo Dam system, which supplies about 90 percent of Metro Manila’s water.

MWSS is a government-owned and controlled corporation that operates Metro Manila’s bulk water system. It oversees two private concessionaries that source, treat and distribute water to customers.

“Climate change is making annual rainfall unpredictable, putting tremendous pressure on water resource use,” said Vijay Padmanabhan, director of the Urban Development and Water Division of ADB’s Southeast Asia Department.

“The Philippine government is increasing investments in clean infrastructure for environmentally sustainable water resource management across the country. Through this project, ADB is helping the Philippines secure Metro Manila’s water supply.”

The new aqueduct, with a 3.6-meter diameter, will increase the system’s water transfer capacity to 66 cubic meters per second (m3/sec) by 2025, from 50 m3/sec in 2019. It will allow MWSS to retire its two oldest aqueducts and repair others through 2032.

It will have a welded steel concrete-coated pipe and will be able to withstand magnitude 7.2 earthquakes, therefore increasing the resilience of Metro Manila’s water supply.

The new loan supplements ongoing ADB financing to MWSS, approved in 2016 to fund the construction of a 6.3-km modern, earthquake-resilient upstream water tunnel. The tunnel is expected to be completed in June, three months ahead of schedule.

Since 1974, ADB has supported more than a dozen Metro Manila water projects, which, in addition to the current loan, includes four other loans supporting the Angat supply system.

The Angat water transmission project is part of the government’s Build Build Build infrastructure development program.

Once construction starts this year, it is expected to provide a stimulus to domestic material suppliers and create more construction jobs.