March 22, 2018, 8:16 am
Facebook iconTwitter iconYouTube iconGoogle+ icon

Japan still PH’s top ODA provider

The government of Japan remains the country’s top official development assistance (ODA) development partner in terms of loans for the first half of 2017.

The National Economic and Development Authority (NEDA) said in a statement yesterday  loans from Japan, administered through the Japan International Cooperation Agency (JICA) had the largest share of 44.83 percent in the total ODA loans portfolio for the period, amounting to $4.84 billion.

“Japan has been our long-time development partner and we have established a strong relationship with them. They have one of the best loan terms,” said Rolando Tungpalan, NEDA undersecretary.

Tungpalan said loans from JICA particularly under the Special Terms for Economic Partnership (STEP) have a payment period of 40 years with a 0.1 percent annual interest rate for civil works and 0.01 percent for consulting services.

The World Bank came in second with $2.948 billion (27.31 percent) while the Asian Development Bank (ADB) ranked third with $2.174 billion (20.14 percent).

As of the first half of 2017, the country’s total ongoing ODA loans amounted to $10.797 billion, consisting of 54 project loans ($8.197 billion) and seven program loans ($2.6 billion).

In terms of financial performance, the country’s disbursement level, or the amount of ODA fund allotment that were actually used for projects and programs, slightly decreased to $802.95 million from the $861.04 million in the first semester of 2016.

However, the disbursement rate, or the actual disbursement as a percentage of target disbursement for the period, increased to 86.68 percent for the first half of 2017 from 71.38 percent in the first half of 2016.

Among implementing agencies, the Department of Public Works and Highways and Department of Transportation had the highest loan count with 16 and 11 loans, respectively.

Tungpalan highlighted the contribution of ODA loans toward implementing priority projects of the Duterte administration, saying  23 of the 35 approved projects by the NEDA Board will be funded by ODA loans.

“Thirty-five projects have already been approved by the NEDA Board amounting to P1.235 trillion, majority of which will be funded by ODA in the amount of P1.074 trillion. Last September 12, the NEDA Board approved the Metro Manila Subway Project, amounting to P355.588 billion, to be funded by Japan,” he said.

Among the priority projects with funding from JICA are the PNR North 2 (Malolos-Clark Airport-Clark Green City Rail), Cavite Industrial Area Flood Management Project, Malitubog-Maridagao Irrigation Project Phase II, and the recently approved Metro Manila Subway Project. 

Tungpalan said  the Philippine Development Plan 2017-2022 said e government’s investment program for infrastructure will be based on an optimal mix of ODA, government domestic financing (General Appropriations Act), and private capital (Public-Private Partnerships)
No votes yet