The National Economic and Development Authority (NEDA) reported a substantial increase in concessional loan disbursements received by the Philippines from its development partners last year, primarily earmarked for financing infrastructure projects.

NEDA Secretary Arsenio M. Balisacan said on Thursday, Aug. 8, that the financial disbursement of Official Development Assistance (ODA) surged by 27 percent from January to December 2023, totaling $15.8 billion.

According to the 2023 ODA Portfolio Review report, the country's active ODA portfolio of loans and grants reached $37.29 billion in 2023, comprising 113 loans valued at $5.07 billion and 325 grants amounting to $2.22 billion.

“This is a welcome opportunity as we boost the government’s capabilities and introduce crucial reforms to sustain our country’s socioeconomic progress,” Balisacan said in a statement.

“We assure the public that the government is maximizing the opportunity to utilize additional funding for economic recovery and infrastructure development under the Marcos Administration’s Build-Better-More program,” he added.

The report showed that the Philippines obtained 13 fresh program loans valued at $6 billion and 17 new project loans amounting to $6.08 billion through ODA.

Notably, a $1 billion fund was allocated for the Post-Covid-19 Business and Employment Recovery Program among the new program loans.

Balisacan stated that this initiative is geared towards jumpstarting job creation and economic growth, both of which suffered greatly due to the pandemic.

The ODA portfolio also includes initiatives to modernize the country’s financial systems, which promotes economic development and inclusivity.

Moreover, in 2023, the country secured 57 new ODA grants totaling $240.53 million. 

These grants are intended to bolster the capabilities of the government and local stakeholders in public service delivery and in addressing the country’s developmental hurdles such as imbalanced growth, susceptibility to natural disasters, inadequate access to education, and limited innovation, among others.

“We have made significant progress in securing and utilizing our funding sources. We are committed to ensuring that these funds are efficiently spent by addressing critical challenges such as procurement delays and problems in right-of-way acquisitions,” Balisacan said. 

“This underscores the need for a whole-of-government approach, coupled with assistance from our other development partners, to implement strategic interventions and enhance our project management practices,” the country’s chief economic planner added.

To address these challenges, NEDA recommended some interventions. 

They include strengthening agency capacities in procurement to ensure that processes are conducted efficiently and in compliance with relevant legal frameworks and policies. 

Additionally, leveraging the Real Property Valuation and Assessment Reform Act to help resolve property valuation disputes and streamline site acquisition processes is suggested. 

Furthermore, ensuring the alignment of agencies’ budget requests with Department of Budget and Management guidelines and ensuring that proposals are thorough and submitted on time is recommended. 

Lastly, enhancing coordination efforts among implementing agencies, development partners, local government units, and stakeholders to secure the timely approval of permits and certificates is highlighted.