The guidelines on official development assistance (ODA) loans for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) has been approved by the Intergovernmental Fiscal Policy Board (IFPB), the Department of Finance (DOF) said yesterday.
In a statement, the DOF said the approval will pave the way for the region’s access to foreign-assisted projects and programs that will support its inclusive development.
“With these ODA guidelines, we are equipping the BARMM with the tools needed to shape its future and write its own success story. This unlocks limitless opportunities for the BARMM——from infrastructure development to socioeconomic programs that create jobs, boost incomes and lift communities out of poverty,” Finance secretary Ralph Recto said during the signing ceremony on the said guidelines at the DOF office in Manila yesterday.
“Beyond financing, this will provide the BARMM with access to knowledge, technology transfers, capacity-building and a wealth of experience from experts and development partners around the world,” Recto added.
The ODA guidelines authorize the Bangsamoro government to contract loans, in cash or in kind, from governments of foreign countries, their agencies and instrumentalities or multilateral institutions or organizations.
Under the guidelines, the Bangsamoro government can take out loans to finance investment, social and economic development projects for the welfare of the people of the Bangsamoro, provided that ODAs must only be used in the absence of other financial instruments in the capital market and that it must contain a grant element of 25 percent.
Meanwhile, ODA funds cannot be used for telephone programs, projects required by law to be handled by the private sector or for financing private corporations that have access to commercial credit.
The guidelines also detail the Bangsamoro government’s instrumentalities that may be involved in the ODA loan process, the pertinent documents for technical and financial evaluation, as well as the procedure for the approval of ODA loans to the BARMM in coordination with the National government.
