Baguio City has lost P2.9 billion in funding for the rehabilitation of its main Sewerage Treatment Plant after the project was removed from the Department of Economy, Planning, and Development’s (DepDev) official project list.

The funding was supposed to come from an Asian Development Bank (ADB) loan. However, the Investment Coordination Committee (ICC) of DepDev dropped the project because the city failed to secure official approval from the Baguio City Council, and the Department of Tourism missed the 31 July deadline to submit a complete proposal.

DepDev explained that without the required documents submitted on time, the project could not remain on their Project Appraisal Monitor, resulting in its removal.

Baguio originally sought funding through the Tourism Infrastructure and Enterprise Zone Authority to upgrade the STP and avoid hefty fines from the Department of Environment and Natural Resources. These fines stem from pollution in the Balili River, which is linked to the current plant’s shortcomings.

Now, the city must find other funding options. City Budget Officer Leticia Clemente said the ADB loan remains the best choice due to its low interest rates.

The city plans to re-submit the project with an improved feasibility study and all required endorsements.

Meanwhile, local officials face pressure to work with the Environmental Management Bureau to rehabilitate the plant and avoid further DENR penalties.