The Intergovernmental Fiscal Policy Board (IFPB) has approved guidelines for official development assistance (ODA) loans to the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
In a statement on Tuesday, Sept. 3, Finance Secretary Ralph G. Recto said that these guidelines will facilitate BARMM’s access to foreign-assisted projects and programs, promoting inclusive development.
Co-chaired by Recto and Bangsamoro Government Minister of Finance, Budget and Management Ubaida C. Pacasem, the IFPB was established under the Bangsamoro Organic Law (BOL).
IFPB would address revenue imbalances and fluctuations in the region's financial needs and capacity to generate revenue, the DOF said.
“With these ODA guidelines, we are equipping the BARMM with the tools needed to shape its future and write its own success story,” Recto said during the signing ceremony at the Department of Finance (DOF) office in Manila.
“This unlocks limitless opportunities for the BARMM—from infrastructure development to socioeconomic programs that create jobs, boost incomes, and lift communities out of poverty,” he added.
Aside from financing, Recto said this will also provide BARMM access to knowledge, technology transfers, capacity-building, and expertise from global experts and development partners.
In accordance with the BOL, the ODA guidelines allow the Bangsamoro Government to borrow money, either in cash or in kind, from foreign governments, their agencies, multilateral institutions, or organizations.
According to the guidelines, the Bangsamoro Government is permitted to borrow money to fund investment, social, and economic development projects for the well-being of the people of the Bangsamoro, as long as ODAs are used only when other financial instruments in the capital market are not available and contain a grant element of 25 percent.
Meanwhile, ODA funds cannot be used for telephone programs, projects mandated by law to be managed by the private sector, or for funding private companies with access to commercial credit.
The guidelines also outline the agencies of the Bangsamoro Government that may be involved in the process of obtaining ODA loans, the relevant documents for technical and financial assessment, and the procedure for approving ODA loans to the BARMM in cooperation with the National Government.
With the ODA guidelines established, Recto expressed confidence in the Bangsamoro Government's ability to capitalize on opportunities, effectively utilize concessional ODAs, and prudently and carefully manage partnerships.
He said that the advancements made by the IFPB are a clear indication of the cohesive and supportive relationship between the National Government and the Bangsamoro Government.