CORRECTION: The NEDA media release last August 31, 2020 incorrectly said that “…ODA loans and grants amounting to USD 10.94 billion have been added to the country’s total ODA portfolio…”
The USD 10.94 billion actually refers to the amount indicated in the 3rd pillar of the Four-Pillar Socioeconomic Strategy Against Covid-19 (projected ODA of USD 8.6 billion and selling of global bonds of USD 2.35 billion for Covid-19 response).
The actual amount secured is available in the DOF website: https://www.dof.gov.ph/data/fin-agreements/
August 31, 2020
PH ODA REACHES USD21.62 BILLION IN 2019;
ADD’L FUNDING FOR COVID-19 AT USD10.94 BILLION IN 2020
MANILA — The country’s Official Development Assistance (ODA) portfolio as of December 2019 stood at USD21.62 billion, while additional ODA funding of around USD10.94 billion was recorded for the COVID-19 pandemic response as of 5 Aug 2020.
In the recently-released ODA Portfolio Review 2019 report of the National Economic and Development Authority, the portfolio consisted of 84 loans worth USD19.98 billion (92% of the total portfolio), and 268 grants worth USD1.64 billion (8% of the total portfolio).
Japan remained the top provider of ODA to the Philippines in 2019, with its loans and grants amounting to USD 8.51 billion. This accounts for 39 percent of the active ODA portfolio.
The infrastructure development sector accounted for the largest share of the active ODA portfolio with 58 percent (USD12.54 billion), followed by the social reform and community development sector with 18 percent (USD3.81 billion). Other sectors, such as i) governance and institutions development, ii) agriculture, agrarian reform, and natural resources, iii) and industry, trade, and tourism sectors account for the remaining with 24 percent (USD5.26 billion).
The overall disbursement level of the loans portfolio increased by 21 percent from USD 2.23 billion in 2018 to USD2.71 billion in 2019 while the disbursement rate of the project loans portfolio increased to 64 percent in 2019 from 58 percent in 2018.
Moreover, the availment rate of the project loans portfolio performed better with a 6-percentage-point increase from 67 percent in CY 2018 to 73 percent in CY 2019.
“The recent loans portfolio performance showed improvements for the past two years. For 2019, all indicators of absorptive capacity improved. We are grateful to our development partners for supporting us in our efforts to pursue much-needed reforms towards a higher growth trajectory and improving the quality of life of all Filipino people,” said Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua.
The NEDA Chief added that the government needed to borrow more in 2020 to help fund emergency response, social protection programs, and other related expenditures that would provide immediate relief to Filipinos affected by the COVID-19 pandemic.
As of 5 August 2020, 19 ODA loans and grants (16 loans and 3 grants) amounting to USD 10.94* billion have been added to the country’s total ODA portfolio in support of the government’s efforts to address the COVID-19 pandemic and to mitigate its economic impact.
“These will enable us to provide more support to the people and will also help cover budget priorities in 2020 and 2021 to help address the health crisis,” Chua said.
NEDA conducts the annual ODA portfolio review pursuant to Republic Act (RA) No. 8182, also known as the ODA Act of 1996, as amended by RA 8555.
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*Non-USD loan amounts were converted to USD using the Bangko Sentral ng Pilipinas’ average monthly foreign exchange rates for Q2 2020. These amounts may be different from the DOF data due to the difference in the exchange rates used.
**The ODA Portfolio Review 2019 has an updated table 2.6 (Total ODA by fund source) on page 15. You may access the updated ODA Report at https://neda.gov.ph/oda-portfolio-review-2019/