BORACAY ISLAND, Aklan, Philippines – The Boracay Island Water Company, Inc. (Boracay Water) has announced that it has secured a P500-million loan from the Development Bank of the Philippines (DBP) and Security Bank Corp. (SBC), through the Philippine Water Revolving Fund (PWRF) with an option to increase up to P1 billion in financing additional capital expenditures for various environmental projects in Boracay over the next few years.

In a statement issued to local media, Boracay Water said, “The loan is the first of its kind in the Philippine corporate market, carrying a 20-year tenor with an upsize feature of up to P1 billion. The loan structure with a 75% fixed and 25% floating rate seamlessly aligns with the company’s concession period of 25 years making cash flows more manageable and predictable.”

The P1-billion term-loan facility will provide the company with 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.

One concluded, the facility will allow Boracay Water to fulfill its commitment to provide adequate quality water and sanitation services, support future growth and maintain environmental sustainability amid growing tourist inflow on the island.

Since taking over the island’s water and wastewater operations last January 1, 2010, Boracay Water said it has brought down water losses significantly from 37 percent to 24 percent, increased water pressure from 15 per square inch (psi) to an average of 30 psi resulting in the provision of 24-hour water supply the entire week 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 daily.

“This has allowed the (Boracay Water) to achieve environmental compliance four years ahead of the concession target, effectively reversing the island’s water pollution challenges,” the statement from the water firm said, adding that “since the STP upgrade, treated water released from the facility to Bulabog beach (on the eastern side, where most of the watersports in Boracay takes place, opposite famed White Beach on the island’s western side which is more ideal for swimming) has been rendered safe for swimming and aquatic life.”