NEDA: ODA disbursement improved in 2017
MANILA, Philippines — The government’s capability to implement projects and programs that are funded through official development assistance, or ODA, improved last year, the National Economic and Development Authority said Thursday, with Japan still the Philippines’ top ODA source.
According to NEDA’s 2017 ODA Portfolio Review Report, disbursement rate, or the actual disbursement level as a percentage of target disbursement for the period, was at 67.21 percent, an increase from the previous year’s 61.12 percent.
ODA loans are cheaper sources of financing as they carry lower interest rates than lending rates imposed by commercial banks. ODAs also have longer grace and repayment periods.
“This means implementing agencies are improving their technical capacities and making headway in resolving key issues that cause delays in the execution of programs and projects,” Socioeconomic Planning Secretary Ernesto Pernia said.
According to NEDA, the Philippines’ total outstanding ODA portfolio for 2017 reached $14.72 billion, constituting 352 grants amounting to $2.42 billion and 70 loans amounting to $12.30 billion.
The infrastructure sector continued to receive the largest share of the total ODA at $6.62 billion, accounting for 45 percent of the total amount, followed by social reform and community development at 26.11 percent.
Meanwhile, Japan remained the top provider of ODA to the Philippines. Its loans and grants for 2017 stood at $5.33 billion, accounting for 36.18 percent of the country’s total ODA portfolio.
It was followed by the World Bank at $3.07 billion (20.88 percent) and the Asian Development Bank at $2.97 billion (20.16 percent).
“We are grateful for all the foreign assistance in the form of grants and loans that we received from our development partners last year. The government’s constant role is to make the most out of these to bring positive impact to the people’s lives and realize our collective development goals as a nation,” Pernia said. — Ian Nicolas Cigaral
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