CITY COUNCIL APPROVES 2.6-B STP REHABILITATION AND EXPANSION PROJECT

April 20, 2024 Metro BLISTT

BAGUIO CITY

The Baguio City Council approved the Baguio City Tourism Resilience Project, a comprehensive initiative aimed at improving sanitation facilities and practices to enhance Baguio City’s resilience as a tourism destination. The project will receive funding from two sources: a 36.7 million USD loan from the Asian Development Bank (ADB) and a 10 million USD contribution from the United Kingdom–ASEAN Catalytic Green Finance Facility (UK-ACGF). The city
government’s partnership with the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) allows access to
funding.

The loan will be paid by the city government over 29 years with a grace period of eight years and a repayment period that extends for 21 years for most parts of the loan. The UK loan will be paid over 15 years with a grace period of 7
years and a repayment period of eight years. The interest rate for the ADB loan is 4.63%, while no interest payment is required for the loan granted by the UK. The estimated cost of approximately P2.6 billion is based on the feasibility study’s findings, with the final cost determined during the actual implementation phase.

The executive department plans to offset project costs and cover loan repayment through a combination of sources,
including sanitation fees from residential and commercial properties and an Environmental Users Fee (EUF) imposed on tourists staying in accommodations within the city. Mayor Benjamin Magalong highlighted the environmental concerns surrounding the Pasig River and the potential penalties for not acting on these issues. If implemented, the Baguio Resiliency Tourism Project would address challenges and opportunities related to sanitation and tourism, improve sanitation infrastructure and services, and mitigate negative environmental impacts such as soil, groundwater, and water bodies pollution.

Jordan Habbiling/SP