Government extends water deals, approves rural infrastructure projects

The Philippine government has extended its long-term commitment to water security and rural development following the approval of key projects during the inaugural meeting of the Economy and Development (ED) Council, chaired by President Ferdinand R. Marcos Jr.

In a statement released by the Department of Economy, Planning, and Development (DEPDev), the council approved the 10-year extension of concession agreements with Maynilad Water Services, Inc. and Manila Water Company, Inc., pushing their contracts from 2037 to 2047. 

The move aligns the agreements with the firms’ legislative franchises under Republic Acts 11600 and 11601.

DEPDev Secretary and ED Council Vice Chair Arsenio Balisacan said the extension will help secure safe, reliable, and affordable water services for Metro Manila and surrounding areas while attracting new capital investments and generating an estimated P50.3 billion in government revenues.

“Ensuring water security is fundamental to fostering economic growth and improving the quality of life for our growing population,” Balisacan said.

“By aligning the concession agreements with legislative franchises, we are promoting policy coherence and long-term investment planning in the water sector,” he added.

Alongside the water extension, the ED Council also greenlit two major Official Development Assistance (ODA)-funded infrastructure projects targeting improved rural access and economic mobility.

These include the P27.7-billion Farm-to-Market Bridges Development Program of the Department of Agriculture (DA), which will construct 300 modular steel bridges in 52 provinces across 15 regions to support farmers and fisherfolk.

Balisacan emphasized that the project will address connectivity gaps that hamper productivity, market access, and income growth in rural communities.

The council also approved the PHP5.1-billion Liloan Bridge Construction Project of the Department of Public Works and Highways (DPWH). The 721-meter, four-lane bridge will connect Panaon Island to mainland Leyte, replacing the aging structure and improving access for the municipalities of Liloan, San Francisco, Pintuyan, and San Ricardo.

The bridge is expected to enhance mobility, stimulate local economic activity, and create jobs in the region.

Balisacan said the council’s first meeting sets the groundwork for a more integrated and inclusive approach to development planning.

“By strengthening water resources, agricultural productivity, and infrastructure connectivity, we aim to unlock greater economic opportunities and foster inclusive growth for more communities across the country,” he said.