No need to amend ODA law, says NEDA

MANILA, Philippines — The National Economic and Development Authority (NEDA) said there is no pressing need to prioritize the amendment of the Official Development Assistance (ODA) Act of 1996.

During the House Committee on Ways and Means hearing yesterday, NEDA Undersecretary Jonathan Uy said Republic Act 8182 or the ODA Act of 1996 should not be revised at this point in time.

The Makabayan bloc filed House Bill 7963 that aims to ensure the effectiveness of all ODA loans and grants, and amend the ODA Act of 1996.

“The Executive has fully adhered to the processes under ODA and sees no need for this particular bill to be prioritized at this time,” Uy said.

“We see no need to amend the law at this point. The existing process is already able to be responsive and flexible with regard to changing the nature of approved projects,” he said.

An ODA is a loan or a grant administered to promote sustainable social and economic development and welfare of the Philippines.

ODA resources must be contracted with governments of foreign countries with whom the Philippines has diplomatic, trade relations or bilateral agreements, or which are members of the United Nations, their agencies, and international or multilateral lending institutions.

Bayan Muna Rep. Ferdinand Gaite said ODA has doubled since President Duterte took over in 2016. Of the ODA over the years, 92 percent are loans and only eight percent are grants.

While ODA has low interest rates and grace periods, Gaite said its conditionality are quite burdensome for host countries.

“Of the ODA, only 8.3 percent is definitely for COVID-19. There is meager ayuda for the poor and nonexistent for MSMEs (micro, small, and medium enterprises). That budgetary support is meant to cushion the impact on bug businesses. Utilization has always been problematic,” Gaite said.

“The quality of the ODA is important and not just because we can easily get it. The objectives of sustained reduction of poverty, equality, human rights and democracy, environmental sustainability, and gender equality should not take a back seat even during the pandemic,” he said.

Uy emphasized that access to ODA ultimately depends on the needs of the Philippines and that Congress already reviewed the executive decision on accessing ODA through the national budget approval process.

In light of the peak of the pandemic last year, Uy cited that NEDA was able to quickly reformat and reformulate its project with the Department of Health to be aligned with COVID-19 response, including coverage of vaccine procurement.

“The system in place is already responsive and the Executive has moved forward in streamlining processes for ODA loans and grants to be restructured,” Uy said.

Among the parameters that are looked into for ODA proposals include responsiveness to Philippine Development Plan priorities, and economic and financial viability to ensure that projects can be able to pay for themselves if there are fees and charges to be imposed on the public.

Also considered is the implementability which includes technical suitability, institutional capability, funding readiness, and budgetary availability, as well as sustainability through environmental impact and social acceptability.