MANILA, Philippines — Manila Water Company’s subsidiary Boracay Island Water Company, Inc. has closed a P500-million loan to finance the additional capital expenditures for the company’s environmental projects in Boracay over the next few years.

The loan, which comes with an option to increase it up to P1 billion, was obtained from the Development Bank of the Philippines and Security Bank through the Philippine Water Revolving Fund (PWRF).

The PWRF is a collaborative undertaking of the Philippine Government, United States Agency for International Development (USAID) and the Japan International Cooperation Agency (JICA) to address the need to mobilize additional and sustainable resources to meet the country’s Millennium Development Goals.

Boracay Water gets P500-M loan

This deal is the first and the biggest loan provided by the PWRF to a private company from the water sector.

The loan facility will provide Boracay Water with the necessary financial support and flexibility to support key projects such as network improvement and expansion to achieve 100 percent water coverage by 2014 and 100 percent sewerage coverage by 2018.

The conclusion of the facility enables Boracay Water to fulfill its firm commitment to provide adequate quality water and sanitation services, support future growth and maintain environmental sustainability amidst the growing tourist inflow in the island.

Since taking over the island’s water and wastewater operations last January 1, 2010, Boracay Water has exhibited successful operational performance.

The company brought down water losses significantly from 37 percent to 24 percent, increased water pressure from 15 psi to an average of 30 psi resulting in the provision of 24/7 water supply to 96 percent of the island’s population.

Recently, Boracay Water upgraded the island’s Sewage Treatment Plant (STP) to boost wastewater treatment capacity to 250 percent (from 2.6 million liters per day to 6.5 million liters per day).

This has allowed the Company to achieve environmental compliance four years ahead of the concession target, effectively reversing the island’s water pollution challenges.

Since the STP upgrade, the treated water released from the facility to Bolabog beach has been safe for swimming and aquatic life.

Boracay Water is a Public-Private Partnership between the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) and Manila Water Company, Inc.