World Bank approves $250.87-M loan for water, sanitation projects in Bohol, Siargao, Jolo

By I. Inojales | 03:25 PM August 02, 2026

TAGBILARAN CITY — The World Bank has approved a $250.87-million loan to expand and improve water supply and sanitation services in Bohol, Siargao and Jolo, areas facing unreliable water access, droughts and flooding.

The loan, approved on July 31, will finance most of the $268.62-million Accelerated Water and Sanitation Project in Selected Areas, with the Philippine government and private investors providing the remaining funds.

The project is expected to be completed by Dec. 31, 2031, and will include the construction and rehabilitation of water sources, storage facilities, distribution networks, sanitation systems and hygiene facilities.

In Bohol, the project will develop water infrastructure for Tagbilaran City and seven municipalities in the Loboc cluster, including a bulk water supply system that will draw water from the Loboc River.

The initiative is expected to improve the reliability of water services in communities that continue to experience water supply challenges, while strengthening the province’s capacity to cope with climate-related risks such as drought and flooding.

In Siargao, the project will expand water services to 58 barangays across eight municipalities, develop new water sources and reduce water losses in distribution systems.

In Jolo and nearby areas, the project will rehabilitate an aging water system that currently serves only about 35% of its original coverage.

The planned works include replacing a 56-kilometer distribution network, building four storage tanks and installing around 12,378 household water connections.

Water and sanitation facilities will also be provided in public schools, daycare centers, health facilities and social welfare centers.

World Bank Division Director for the Philippines, Malaysia and Brunei Zafer Mustafaoğlu said the project aims to address the underlying causes of water insecurity and gaps in services, including climate vulnerability, operational inefficiencies and financing constraints.

“This project tackles the core drivers of water insecurity and service gaps—climate vulnerability, operational inefficiencies, and financing constraints—while prioritizing the needs and voices of women, youth, and vulnerable communities,” Mustafaoğlu said.

He said strengthening institutions and encouraging private sector participation would help provide reliable and safe water and sanitation services while supporting economic and tourism growth in island communities.

The World Bank estimates that the project could generate around 8,700 jobs within five years of completion and approximately 46,500 jobs over 25 years by supporting construction, tourism and other economic activities.

The Department of Public Works and Highways and the Department of the Interior and Local Government will implement the project.

The initiative is expected to improve access to basic water and sanitation services while supporting the long-term development and climate resilience of communities in Bohol, Siargao and Jolo.

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