Baguio City loses P2.9B ADB loan for STP rehab

Baguio City has lost a P2.9 billion funding for the rehabilitation of its main Sewerage Treatment Plant (STP) after the project was removed from the Department of Economy, Planning, and Development's (DepDev) official list due to missed deadlines.

The rehabilitation project was intended to be financed by a loan from the Asian Development Bank (ADB).

The project was removed from DepDev's Investment Coordination Committee (ICC) list because the Baguio City Council did not provide approval and the Department of Tourism (DOT) failed to submit a complete proposal by the July 31, 2025 deadline.

DepDev requires a full proposal to keep a project on its Investment Coordination Committee Project Appraisal Monitor (IPAM).

The local government had initially sought funding through the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) to upgrade the STP and avoid penalties from the Department of Environment and Natural Resources (DENR) for pollution in the Balili River.

The city's Budget Officer, Leticia Clemente, stated that the ADB loan is still the most viable option due to its favorable interest rates.

Clemente also mentioned that the city can re-submit the project to DepDev with a revised feasibility study and the necessary endorsements.