The Philippine Local Water Utilities Administration (LWUA) and two water districts (Laguna in Luzon and Misamis Occidental in Mindanao) have launched a pilot project to design financial products for less creditworthy water districts. The project was launched during a needs assessment workshop on November 14-15, 2006 in Pasig City.
The financial products will focus on shorter-term lending for efficiency improvements to increase the water districts’ creditworthiness. When they have achieved sufficient improvements in creditworthiness, the water districts will be able to borrow for expansion.
The pilot project, funded by the USAID regional program Environmental Cooperation-Asia (ECO-Asia), supports the implementation of reforms in the water sector mandated by Presidential Executive Order (EO) 279. Through ECO-Asia, LWUA and the pilot water districts will gain access to a range of technical expertise, best practices and experiences from Asia and the United States, which could support implementation of EO 279. In addition, LWUA and the pilot water districts could participate in regional workshops and conferences to link with counterparts who are addressing common challenges.
Workshop participants included representatives from LWUA, the two water districts, USAID/Philippines, USAID-funded FORWARD project, National Water Resources Board, and the Philippine Association of Water Districts. During the workshop, LWUA and the two water districts developed detailed work plans for 2007, which include needs assessments for each water district and a review of LWUA’s lending strategies and products.
Officials of the Philippine Local Water Utilities Administration, Laguna Water District, Misamis Occidental Water District, and ECO-Asia sign a Memorandum of Understanding for a pilot project that will design financial products for less creditworthy water districts. The signing ceremony was held on November 14, 2006 in Pasig City.
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