Manila, October 2025 – In a move to integrate nature-based solutions (NbS) into infrastructure development, the United Nations Development Programme (UNDP), with funding support from the Government of Canada, and in partnership with the Public-Private Partnership Center (PPPC) presented the result of the Project TUBO Business Case to the Iligan City Government. This initiative seeks to demonstrate viability and value of NbS integration in (PPP) Projects as part of the implementation of the Canada funded Accelerating Green and Climate Finance in the Philippines: Nature-based Solutions (AGCF) Project. 

Since March 2025, UNDP and PPPC have been working closely with a team of specialists to develop a business case for Project TUBO: A Tariff and Utility Blueprint for Water Operations, Model for ICWS. The study establishes the technical and financial feasibility of rehabilitating and expanding the Iligan City Waterworks System (ICWS) through a PPP modality and demonstrates how NbS can be integrated into such projects to create a replicable model for climate-resilient and financially sustainable water service delivery. 

A key feature of Project TUBO is the integration of NbS approaches such as assisted natural regeneration and agroforestry in key watershed areas of Iligan City to improve ecosystem health of its water sources. By working closely with nearby communities to promote practices such as tree growing and proper waste management, the project aims to keep the city’s water sources clean and reliable. These efforts will not only help protect the environment but also reduce the cost of maintaining and operating water facilities. In the long term, these interventions aim to strengthen the city’s water security, lower operational expenses, and strengthen community understanding of the importance of protecting water sources given that water is a finite resource. 

“Project TUBO means immediate service improvements while ensuring long-term sustainability and local ownership by combining system rehabilitation, nature-based solutions, and a public-private partnership approach” said Mayor Frederick W. Siao of Iligan city. “I want to assure every Iliganon that we are doing this the right way. With the completion of the business case, we initiated the process for a solicited PPP proposal, with no shortcuts, to ensure that Iliganons receive the quality water service they deserve — one that is sustainable, reliable, and worthy of our city. We will not let our water challenges hold back Iligan’s growth.”

“We need to look at this project as an adaptation and environmental governance strategy of iligan,” said Theresa Espino Yap, Programme Analyst under the UNDP Climate Action Programme. “It must be part of a city-wide vision to strengthen Iligan’s overall approach to water and environmental governance. The PPP model we are pursuing should go hand in hand with efforts to improve how we protect and manage our natural resources. The goal is not just to deliver clean and reliable water, but to gain traction in building a more climate-resilient and forward-looking Iligan City.”

During the two-day mission, the UNDP-PPPC team met with ICWS to discuss and finalize the technical details of the business case. This was followed by an Executive Session with Mayor Frederick Siao and City Administrator Darwin Manubag where the team presented the full results of the business case and discussed the pathway that the city leadership would like to take in finalizing the business case. The mission culminated in a plenary session attended by around 70 Iligan City officials, including the Mayor, Vice Mayor, members of the Sangguniang Panlungsod, department heads, and ICWS representatives. The session served as a knowledge sharing session on Project TUBO and a venue to underscore the importance of PPP and NbS as key strategies for climate action and sustainable water management in Iligan City.

Developed in close collaboration with PPPC, Project TUBO serves as a pilot NbS PPP project that integrates NbS into traditional gray infrastructure to enhance climate resilience, sustainability, and cost efficiency. By moving beyond mainstreaming NbS concepts to actual piloting, the project seeks to demonstrate the viability of NbS PPPs as models for other local governments to strengthen their environmental governance while paving the way for scalable investments in climate-resilient infrastructure. [E]