The World Bank has moved to next month the approval of its $250.89-million loan for a project aimed at improving water supply and sanitation (WSS) in three Philippine islands.

A Feb. 7 project information document (PID) showed that the Washington-based multilateral lender is expected to approve the investment project financing (IPF) for the Philippines Accelerated Water and Sanitation Project in Selected Areas (AWSPSA) on March 30, 2026.

Last year, Manila Bulletin reported that the World Bank loan for AWSPSA was originally scheduled for board approval on Oct. 31, 2025, with a higher financing amount of $275.38 million disclosed in June 2025.

The updated PID also showed a lower total operation cost of $268.85 million, down from $293.96 million originally, although the World Bank will still shoulder the bulk of the funding.

The latest document showed that the Philippine government will shell out $13.53 million to fill the project financing gap, while private-sector equity will amount to $1.33 million. An unguaranteed commercial debt of $3.11 million will also help finance AWSPSA.

To be jointly implemented by the departments of the Interior and Local Government (DILG) and of Public Works and Highways (DPWH), the AWSPSA’s development objective remains unchanged: “To increase access to safely managed WSS services and improve the performance of water service providers in selected areas of the Philippines.”

The specific WSS projects will be located in Loboc, Bohol; Siargao Island, Surigao del Norte; and Jolo, Sulu.

According to the World Bank, the project will invest $213.3 million to expand access to safe, climate-resilient water supply through the construction and upgrading of water systems—from source to household—alongside watershed protection measures.

Major water infrastructure investments will be rolled out in the Loboc cluster in Bohol, Siargao in Surigao del Norte, and Jolo and nearby areas in Sulu, with private-sector participation expected in distribution and operations to help sustain the systems.

The project will also allocate $12.9 million to expand access to safe, inclusive, and climate-resilient sanitation and water, sanitation, and hygiene (WASH) services in public institutions such as schools, health centers, and community facilities.

Investments across the three islands will cover the construction and rehabilitation of WASH facilities, as well as fecal sludge management systems and septage collection infrastructure.

Also, $13.44 million will be allocated to institutional reforms and capacity building to improve the efficiency and sustainability of water supply and sanitation services, including strengthening provinces, local government units (LGUs), and water service providers, as well as supporting project management functions of the DILG.

Additional funding will cover project management and technical assistance for the DPWH, along with a contingent emergency response component that allows the government to quickly reallocate funds in the event of a disaster or crisis.

The World Bank noted that the Philippines faces severe water-related challenges—“too much water, too little water, and water that is too polluted”—exacerbated by climate risks such as stronger typhoons, flooding, rising temperatures, and sea-level rise, which could cost up to 13.6 percent of gross domestic product (GDP) by 2040.

Rapid urbanization and industrialization are straining water demand in the country, while inadequate water supply and sanitation services and worsening pollution underscore the need for sustained investments in WSS infrastructure to boost resilience, protect public health, and support economic growth, the lender added.