A loan scheduled to be greenlit by the World Bank in October is aiming to improve water supply and sanitation in three Philippine islands.

In a June 5 project information document, the Washington-based multilateral lender said its upcoming $275.38-million—or over ₱15-billion—financing for the Philippines Accelerated Water and Sanitation Project in Selected Areas (AWSPSA) will be up for board approval on Oct. 31.

The World Bank will finance the bulk of the six-year project, whose total operation cost is $293.96 million, or more than ₱16 billion.

According to World Bank documents, the Philippine government will shell out $14.16 million (over ₱780 million) to fill the project financing gap; private-sector equity will amount to $1.32 million; while an unguaranteed commercial debt of $3.08 million will also finance AWSPSA.

To be jointly implemented by the departments of the Interior and Local Government (DILG) and of Public Works and Highways (DPWH), the project's goal is "to increase access to safely managed water supply and sanitation (WSS) services and improve the performance of water service providers in selected areas of the Philippines."

"The Philippines exemplifies many of the [East Asia and the Pacific] region's water security challenges: 'too much, too little, too polluted,' with areas of high performance and others facing deep access and service gaps. As one of the fastest-growing emerging markets, the country faces significant population growth, urbanization, and industrialization, requiring substantial investments in WSS infrastructure," the World Bank said.

"It is also one of the countries most impacted by water-related disasters and confronts the challenges of too much, too little, or too polluted water—all increasingly exacerbated by climate risks. These risks may worsen existing inequalities in infrastructure and quality and access gaps in WSS services," it added.

To support the government's aim to achieve universal access to safe WSS by 2030 under its 2020 Philippine water supply and sanitation master plan (PWSSMP), the World Bank said AWSPSA would "feature a sustainable approach to WSS projects that will help address gaps in institutions, regulation, and investments."

The specific WSS projects would be located in the following areas: Loboc, Bohol; Siargao Island, Surigao del Norte; and Jolo, Sulu.

"The project is the first World Bank-financed WSS project in the Philippines in 20 years and is expected to serve as the basis for longer-term World Bank support to the sector," it said.

As Manila Bulletin reported earlier, the Philippines will borrow a total of $7.85 billion—or over ₱437 billion—from the World Bank in the next two years under their new six-year country partnership framework (CPF), or lending program supportive of the country's climb to upper-middle-income country (UMIC) status.

The World Bank Group (WBG) plans to extend to the Philippines between $22 billion and $23 billion—or as much as over ₱1.2 trillion—in loans and other financing starting mid-2025 until mid-2031, covering fiscal years (FYs) 2026 to 2031.