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Baguio secures P3.7 billion in loans to upgrade sewerage treatment plant

Published Sep 24, 2022 07:28 pm

BAGUIO CITY – The city government proposal for a 5-year rehabilitation of the old sewage treatment plant will be implemented through the partnership with Asian Development Bank (ADB) by acquiring some $62.4 million in loans equivalent to more than P3.7 billion.

Photo via Rizaldy Comanda

City budget officer Leticia Clemente said the Baguio Resilient City Tourism Project (BRCTP) will be implemented in partnership with the ADB, the State-owned Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the Department of Tourism (Dot) and the city government.

Under the said project, the ADB will serve as the funding agency, the TIEZA will be the executing and implementing agency for the construction of the sewage treatment plant, the DOT will be the implementing agency for the mandated training of tourism workers in the city while the local government will be the recipient of the projects.

Clemente said the city will provide staff and support to the concerned agencies in securing licenses, permits, ordinances to support an effective project implementation and provide land for the expanded sewerage treatment plant and cover the recurrent cost such as office, space, office operations, meeting cost, staff time and staff travel.

The 5-year project implementation will involve preparation for the first two years, project construction for the next two years and start of operation and maintenance of the sewage treatment plant and Balili sewage network.

The said project will support DOT to establish 12 private sector-led skills training networks in accommodation, food services, farm tourism, creative services, tour operations and transportation.

Of the more than P3.7 billion loan, more than P3.4 billion will be the proceeds from the ADB loan; P12.7 million will be the counterpart of TIEZA while the local government will be providing some P68.9 million.

Under the agreement, TIEZA will own the assets until the local government shall have fully reimbursed to the TIEZA the capital expenditures upon which the assets will be owned by the city.

Upon the project completion, the city is recommended to maintain and operate the sanitation infrastructure assets and it retains full responsibility for and undertakes the delivery of all sanitation services.

Clemente said the BRCTP will translate to approximately forty percent increase in the prevailing treatment capacity of the Baguio sewage treatment plant after the completion of the 5-year project.

She said the ADB will develop a plan for the so-called co-treatment of sewage and septage with a designed capacity of 12,000 metric tons per day using biological treatment technology in the existing Balili sewage treatment plant site.

Currently, the Baguio sewage treatment plant has a treatment capacity of up to 8,600 metric tons per day aside from having existing connections of more than 10,500 households and has an existing septage that contains 20 metric tons per day.

The proposed improved treatment plant can cater to additional connections of up to 6,500 households and will include a co-treatment facility of septage with a capacity of 80 metric tons per day.

Clemente said that once completed, the new sewerage treatment plant can cater to more than 17,000 household connections or around 33.5 percent of the population of the barangays along the Balili river and its tributaries in 2035 apart from an increase of 400 percent from the current capacity to treat the septage production from the entire city.

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