THE Land Bank of the Philippines (LandBank) expects that extending P5 billion in financing for water projects nationwide would boost the country’s water security.
The expectations are pinned on a memorandum of understanding (MOU) signed by Landbank President and CEO Lynette V. Ortiz and Environment and Natural Resources Secretary Raphael P.M. Lotilla. The deal expects Landbank and the Department of Environment and Natural Resources (DENR) would jointly promote sustainable water resource management.
According to the state-run lender, the collaboration builds on Landbank’s ‘H2OPE Lending’ program that has supported 35 borrowers nationwide as of August.
Under the MOU, the LandBank and the DENR will provide financial and technical assistance to water districts, local government units (LGUs) and other institutions engaged in water supply, sanitation and conservation projects.
The MOU also expects the LandBank to allocate funds and design financing programs for eligible projects, promote concessional lending opportunities and provide related financial services.
As a ‘Direct Access Entity’ to the Green Climate Fund (GCF), the bank will also partner with the DENR to develop and manage projects seeking GCF funding.
‘LandBank reiterates its commitment to provide accessible financing to water districts, LGUs, and other entities engaged in water supply, sanitation, and conservation projects,’ Ortiz said. ‘Together, we aim to build resilient communities, strengthen public health, and secure the country’s water future.’
The DENR, for its part, will identify priority water programs, provide technical guidance on resource management and conservation, and assist project proponents in obtaining environmental permits and approvals.
‘Integrated water management is a challenge that we need to be constantly working on. With LandBank’s support as the implementing agency for the loan facility, we can move forward with ease, without having to establish a new system and new agencies to administer the same,’ Lotilla said.
‘Through this partnership, we will also explore a responsive loan instrument for water service providers to better support their operations and improve access to safe water across communities,’ he added.
Eligible projects under the initiative include water supply system development and rehabilitation, wastewater treatment, watershed protection, and other climate-resilient programs aligned with national priorities and the United Nations Sustainable Development Goal 6 on clean water and sanitation for all.