PHL sees 27 pct surge in ODA loan disbursement, drives economic recovery

By Francis Allan L. Angelo

The Philippines recorded a significant 27% increase in the disbursement of Official Development Assistance (ODA) loans in 2023, underscoring the government’s commitment to bolstering economic recovery and infrastructure development.

The National Economic and Development Authority (NEDA) highlighted this achievement, noting that the total ODA loan disbursement reached USD15.80 billion last year.

This boost is part of a broader effort to efficiently utilize ODA funds for critical projects that align with the country’s socioeconomic agenda.

The 2023 ODA Portfolio Review Report revealed that the country’s active ODA portfolio, which includes loans and grants, reached USD37.29 billion.

The portfolio consists of 113 loans amounting to USD35.07 billion and 325 grants totaling USD2.22 billion.

NEDA Secretary Arsenio M. Balisacan praised the increase as a milestone in the Philippines’ ongoing efforts to sustain socioeconomic progress.

“This is a welcome opportunity as we boost the government’s capabilities and introduce crucial reforms to sustain our country’s socioeconomic progress. We assure the public that the government is maximizing the opportunity to utilize additional funding for economic recovery and infrastructure development under the Marcos Administration’s Build-Better-More program,” Balisacan said in a statement.

The report also highlighted the addition of 13 new program loans totaling USD6 billion and 17 new project loans worth USD6.08 billion.

Among these is a notable USD1 billion allocated for the Post-COVID-19 Business and Employment Recovery Program, aimed at revitalizing job creation and economic growth.

Additionally, 57 new ODA grants amounting to USD240.53 million were secured to address challenges such as inequitable growth, disaster vulnerability, and limited access to education and innovation.

Secretary Balisacan emphasized the need for a holistic approach to overcome challenges such as procurement delays and right-of-way issues.

“We have made significant progress in securing and utilizing our funding sources. We are committed to ensuring that these funds are efficiently spent by addressing critical challenges such as procurement delays and problems in right-of-way acquisitions. This underscores the need for a whole-of-government approach, coupled with assistance from our other development partners, to implement strategic interventions and enhance our project management practices,” he said.

To address these challenges, NEDA recommended strengthening agency capacities in procurement, leveraging the Real Property Valuation and Assessment Reform Act, ensuring alignment of budget requests with Department of Budget and Management guidelines, and enhancing coordination among implementing agencies, development partners, local government units, and stakeholders.