BORDA Bremen Overseas Research and Development Association Revolving Fund Concept: Its Prospects for ISA Projects Presented By Engr. Jonas Emmanuel L. Maronilla Managing Director, Basic Needs Services Phils. Inc. Country Representative, BORDA
BORDA Bremen Overseas Research and Development Association Presentation Outline • Philippine Water Revolving Fund • Legal Framework & Institutional Set Up • Completed, on-going and pipeline Projects with PWRF concept • Financing thru revolving fund for ISA in Bauang, L.U. • Financing scheme • Revolving fund options
BORDA Bremen Overseas Research and Development Association Philippine Water Revolving Fund • The Philippines Water Revolving Fund (PWRF), the only water revolving fund outside the United States and Europe, leveraged overseas development assistance with local private funds using a cofinancing arrangement between the Philippine government and private banks.
BORDA Bremen Overseas Research Legal Framework and Development Association • The DoF with USAID and JICA established the PWRF as a cofinancing arrangement that blends public and ODA funds, re-lent through the Development Bank of the Philippines, with internal funds from PFIs to achieve lending terms that are affordable to water utilities. • A bill establishing an independent economic regulatory body, the Water Regulatory Commission; and a local Water Operators Partnership Program anchored on twinning, training, and knowledge management.
BORDA Philippine Water Revolving Fund Bremen Overseas Research and Development Association Provides loan financing to water service providers, LGUs, WDs Financing is backed Loan repayments by a standby credit made into the fund Revolving line and a co- are revolved to Fund guarantor credit finance other guarantee. project Blends Official Development Assistance (ODA) and domestic public funds with commercial financing
BORDA Eligible Projects Bremen Overseas Research and Development Association • Water abstraction or extraction for water supply; Water supply transmission; • Water supply treatment; • Water distribution; • Collection of wastewater; • Treatment and disposal of wastewater; • Investments for non-revenue water reduction or other efficiency-enhancing measures • Other development projects of water service providers
BORDA Bremen Overseas Research Efficient Use of the Collected Money and Development Association • Septage treatment facilities • Wastewater Treatment facilities • Physical clean up of water bodies • Fund community initiatives to reduce household waste – Recycling – Alternative waste disposal • Information dissemination; education on sanitation & health awareness
BORDA Bremen Overseas Research and Development Association Creation of Revolving Fund out of: • PLGU fund contribution • DoH, DPWH subsidy • Portion of LGU’s internal revenue allotment • Portion of the user fee revenue • LLDA Project Development Fund (for LGUs within the Laguna de Bay Basin)
BORDA Bremen Overseas Research Recommended Direction and Development Association • Assure that the money collected from user fees will be used solely for the intended purpose • Improve the billing and collection so that all users are made to pay • Strengthen community initiatives on recycling, proper waste disposal, and improvement of sewerage with the help of LGUs • Strict enforcement of penalties for pollution violations.
BORDA Bremen Overseas Research and Development Association Revolving Fund as Trust Funds • Widely used in the world as a financing mechanism to fund sanitation & environmental protection • Easy to tract where the money goes • Can be used to target specific initiatives • Can earn interest
BORDA Bremen Overseas Research Recommended RF/Trust Funds and Development Association • Sewerage and Septage Treatment Trust Fund – For projects that directly clean the lake water system – Counterpart money for establishment of sewerage systems in the municipalities • Municipal Waste Water Treatment Counterpart Trust Fund – Counterpart financing for construction, repair, rehabilitation, or replacement of new and existing waste water treatment facilities • Recycling Initiatives Trust Fund – For projects that focus on recycling and solid waste management
BORDA Bremen Overseas Research and Development Association Financing Integrated Sanitation
BORDA Bremen Overseas Research and Development Association
BORDA Bremen Overseas Research and Development Association
BORDA Bremen Overseas Research and Development Association
BORDA Bremen Overseas Research and Development Association
BORDA Bremen Overseas Research and Development Association
BORDA Bremen Overseas Research and Development Association
BORDA Bremen Overseas Research and Development Association
BORDA Bremen Overseas Research and Development Association
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