ODA loans reach $9.79 B

MANILA, Philippines – Total loan portfolio from official development assistance (ODA) has reached $9.79 billion as of the second quarter, the National Economic and Development Authority (NEDA) said.

The portfolio consists of 11 program loans worth $3.63 billion and 53 project loans of $6.16 billion.

Project loans finance projects such as roads, power plants, irrigation, water supply and sewerage facilities. The loans are used for the procurement of facilities, equipment and services, or for conducting civil and other related works.

Program loans assist recipient countries seeking to improve policies and implement general system reforms. These loans support implementation of national strategies or of poverty reduction strategies over longer time spans.

In terms of source of ODA loans, the World Bank was the biggest in the second quarter of 2015, with a 35-percent share amounting to $3.44 billion.

The Japan International Cooperation Agency (JICA) was responsible for $3.13 billion, or 32-percent share, followed by the Asian Development Bank (ADB) with $2.58 billion (26 percent).

Total assistance from JICA, ADB and the World Bank constitutes 94 percent, or $9.16 billion in value terms, of the loan portfolio.

The NEDA report shows the infrastructure sector accounted for the largest share of the loan portfolio in terms of net commitment with 39-percent share worth $3.79 billion for 32 loans.

The Social Reform and Community Development took a 25-percent share worth $2.40 billion for nine loans.

The others are: governance and institution development with 21-percent share (valued at $2.06 billion for five loans); agriculture, natural resources and agrarian reform accounted for 17-percent share (worth $1.47 billion for 17 loans); and industry, trade and tourism with one percent share ($64.27 million for one loan).