Baguio City loses P2.9B ADB loan for STP project after missed deadline

Baguio City has lost a P2.9 billion funding for its Sewerage Treatment Plant (STP) rehabilitation project after missing a crucial deadline for submission to the Department of Economy, Planning, and Development (DepDev).

The project, intended to be financed by a loan from the Asian Development Bank (ADB), was removed from the DepDev's Investment Coordination Committee (ICC) Project Appraisal Monitor (IPAM) list due to the failure to obtain approval from the Baguio City Council and the Department of Tourism's (DOT) incomplete proposal submission by the July 31, 2025 deadline.

The STP rehabilitation is crucial to avoid penalties from the Department of Environment and Natural Resources (DENR) for pollution in the Balili River.

City Budget Officer Leticia Clemente stated that the ADB loan is still the most viable option due to its favorable interest rates and suggested that the city can re-apply for the funding with an enhanced feasibility study and the necessary endorsements.

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