Gov’t Secures Concessional Financing for 2024 Projects

The Marcos administration has secured concessional official development assistance (ODA) financing and grants worth PHP 333.42 billion in 2024 for infrastructure and development projects under the Build Better More (BBM) program.

Finance Secretary Ralph Recto highlighted the administration’s commitment to efficient use of funds.

“The Department of Finance takes the responsibility over our people’s money very seriously,” Recto said.

“Dahil bawat piso na ipinagkatiwala ng Pilipino sa atin ay simbolo ng milyong-milyong pangarap, pagsisikap, at pag-asa.”

In 2024, the Department of Finance (DOF) finalized 12 financing agreements amounting to USD 5.67 billion for initiatives across infrastructure, transport, defense, digital technology, health, and agriculture.

Among the flagship projects is the third tranche of financing for the Metro Manila Subway Project, the nation’s first underground railway.

Other notable projects include the Dalton Pass East Alignment Alternative Road Project, Bataan-Cavite Interlink Bridge, Samar Pacific Coastal Road II, Laguna Lakeshore Road Network, New Dumaguete Airport Development Project, and Maritime Safety Capability Improvement Project Phase III.

Financing also supports the Philippines’ First and Second Digital Transformation Programs, Sustainable Recovery Program, Universal Health Care (UHC) Program Subprogram 2, and projects focused on climate change adaptation and agriculture.

Additionally, the DOF secured PHP 4.34 billion in grants from bilateral and development partners for projects in peace and development, climate mitigation, water security, and artificial intelligence in agriculture.

Grants, which do not require repayment, include initiatives such as AI-based flood forecasting for the Laoag River Basin, Metro Cebu’s sewerage master plan, and urban climate action in low-carbon cities.

Government-to-government agreements were signed with France, Sweden, and South Korea, further expanding access to grants, technical assistance, and blended financing for national priorities.

The Philippines’ financing strategy maintains a 77:23 domestic-to-foreign borrowing mix as of November 2024, minimizing forex risks and capitalizing on local financial liquidity.

Despite the increased financing, the national debt remains manageable at 61.3% of GDP as of the third quarter of 2024, according to DOF data.