Central Bank OK’s €272-M loan for Laguna de Bay rehab

THE BANGKO Sentral ng Pilipinas (BSP) has formally approved a €272.394-million loan of the government to fund the rehabilitation of Laguna de Bay over the next two years.

BSP deputy governor Diwa C. Guinigundo told reporters on Friday last week the approved loan will help finance the Laguna Lake Rehabilitation Project, which involves dredging the bottom of a heavily silted channel that drains the lake in order to improve water quality and flood mitigation.
A BSP document showed the project aims "to improve the ecological and environmental quality of Laguna Lake in order to restore its life support system, to provide impetus to the socioeconomic development of the region, and to improve Laguna Lake’s capacity as a catch basin to reduce flooding in the adjacent towns and cities."
The loan, which will be extended by Fortis Bank of Belgium to the Department of Environment and Natural Resources, will mature in 12-and-a-half years, with a grace period of two-and-a-half years. The loan imposes a penalty for late availment at 0.75% a year on the undrawn amount.

The project will involve the dredging of the entire eight-kilometer stretch of the Napindan Channel of an estimated 9.84 million cubic meters of silt. The project also includes the reclamation of five lakeshore areas for wastewater treatment facilities; establishment of four sewerage treatment plants; and development of a ferry system.
The rehabilitation is slated to start this year and end in 2012. The project is in line with Executive Order 815, issued in July 2009, which sought to improve the lake’s ecological condition

SOURCE: http://www.bworldonline.com/main/content.php?id=11421