Lower House approves bill ensuring effectiveness of ODA loan benefits


The House of Representatives has unanimously approved on third and final reading a bill that will help guarantee the effectiveness of loans secured by government under the Official Development Assistance.

Infrastructure project

Principally authored by Makabayan lawmakers, House Bill 10322 was approved by all 166 congressmen present during the virtual plenary session held on Monday, Nov. 22.

Plenary approval was strongly sought by the House Committee on Ways and Means chaired by Albay Rep. Joey Sarte Salceda.

HB 10322 will amend Republic Act No. 8182, otherwise known as the Official Development Assistance Act of 1996.

Under the bill, ODA should be administered with the objective of achieving “sustained reduction of poverty and inequality, supporting the enjoyment of human rights, democracy, environmental sustainability and gender equality by the Filipino people.”

Security ODA loans and grants should be based on the principles of democratic or countery ownership and mutual accountability with the aim of uplifting the economic, social and cultural condition of Filipinos.

HB 10322 also requires the conduct of social and economic impact evaluation and consultations with the intended beneficiaries before the funds are utilized.

Civil society organizations, under the bill, are authorized to measure the impact of aid effectiveness of ODA.

Further, it establishments a citizen participation committee for each ODA-funded project. The committee will monitor, review and recommend measures that will guarantee proper implementation of ODA-funded programs of the government.

Principal authors of the measure included Deputy Minority Leader and Bayan Muna Rep. Carlos Isagani Zarate and Reps. Sarah Jane Elago (Kabataan); France Castro (ACT Teachers Partylist); Eufemia Cullamat (Bayan Muna); Ferdinand Gaite (Bayan Muna) and Arlene Brosas (Gabriela).

Authors sought passage of the measure as they noted that “in reality”, donor countries use the ODA as “a conduit for the exdport of excess capital and goods.” “IN the case of the Philippines, ODA unduly reflects collective donor preferences and not the social and development imperatives of the country. Ironically, aid has tended to reinforce rather than remedy the basic prolem of official development strategies of the country,” they pointed out.

“By introducing such amendments, the authors by no means have the illusion that the self-serving (to the donor) nature of development aid can be altered. Only that somehow, some safeguards for its abuses are put in place in order to maximize whatever potential benefit it may have,” said the Makabayan bloc lawmakers.