Baguio loses P2.9B sewerage rehab fund after missed deadline

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

The rehabilitation was supposed to be funded by a loan from the Asian Development Bank (ADB). However, DepDev’s Investment Coordination Committee (ICC) removed it from its project list after the city failed to secure approval from the Baguio City Council, while the Department of Tourism (DOT) also failed to submit a complete proposal by the July 31, 2025 deadline.

DepDev explained that a full proposal was required to retain the project on its Investment Coordination Committee Project Appraisal Monitor (IPAM). Without the necessary submission, the project was dropped.

The local government initially sought funding through the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) to upgrade the STP and avoid hefty fines from the Department of Environment and Natural Resources (DENR) for pollution in the Balili River, which is linked to the plant’s current operations.

City Budget Officer Leticia Clemente said the ADB loan remains the best option because of its favorable interest rates. She noted that the city may re-submit the project to DepDev with an improved feasibility study and the required endorsements.

In the meantime, officials face the task of convincing the Environmental Management Bureau (EMB) to consider measures to rehabilitate the facilities and prevent the DENR from imposing multi-million peso fines.