LGU URBAN WATER & SANITATION

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The development objective of the LGU Urban Water and Sanitation Project will be achieved through a series of three Bank-supported investments to assist the Government of the Philippines in: clarifying the role of local government units (LGUs) in the provision of water supply services; providing guidance to the LGUs in the development and implementation of viable and sustainable water supply projects; managing water as an economic good and promoting greater private sector participation in service delivery; and, identifying institutional strengthening needs of LGUs to develop their capacity to perform financing, planning and service provision functions. The project objective is to test and fine-tune the set of institutional, technical, financial and economic rules through which the national policies can be translated to concrete measures that ensure better quality water supply and sanitation services in hundreds of small towns in the Philippines. The six components are: 1) financing of civil works, equipment and supervision; 2) financing of a sanitation program; 3) financing investments in an urban drainage program; 4) creation of the water utilities private sector participation facility; 5) support new projects through a revolving fund; and 6) technical assistance for institutional capacity building. The loan will be channeled through the Development Bank of the Philippines.