Other Government Release

National Economic and Development Authority

PH achieves 27 percent increase in ODA loan disbursement, bolstering economic recovery and infra dev’t—NEDA



MANILA – The Philippines has made significant strides in its economic recovery and infrastructure development efforts, with a notable 27 percent increase in the financial disbursement of Official Development Assistance (ODA) loans in 2023. This improvement in disbursement, which reached a cumulative total of USD15.80 billion last year, underscores the government’s commitment to efficiently utilize ODA funds for critical projects that support the country’s socioeconomic agenda, according to the National Economic and Development Authority (NEDA).

According to the 2023 ODA Portfolio Review Report, the country’s active ODA portfolio of loans and grants reached USD37.29 billion in 2023. The report, released on August 8, detailed 113 loans amounting to USD35.07 billion and 325 grants worth USD2.22 billion.

NEDA Secretary Arsenio M. Balisacan lauded this increase as a significant progress in the utilization of the ODA funds. “This is a welcome opportunity as we boost the government’s capabilities and introduce crucial reforms to sustain our country’s socioeconomic progress. 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,” Balisacan said.

The report revealed that the Philippines’ ODA includes 13 new program loans amounting to USD6 billion and 17 new project loans worth USD6.08 billion. Notably, among the new program loans is a USD1 billion allocation for the Post-COVID-19 Business and Employment Recovery Program. This initiative aims to stimulate job creation and economic growth, both of which were severely affected by the pandemic. The ODA portfolio also encompasses efforts to modernize the country’s financial systems to promote economic development and inclusivity.

In addition, the country secured 57 new ODA grants totaling USD240.53 million in 2023. These grants are designed to enhance the capacities of the government and local stakeholders in public service delivery and in addressing the country’s developmental challenges, such as inequitable growth, vulnerability to natural disasters, lacking 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. 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 stated.

To address these challenges, NEDA recommends the following interventions:

  1. Strengthening agency capacities in procurement to ensure that processes are conducted efficiently and in compliance with relevant legal frameworks and policies;
  2. Leveraging the Real Property Valuation and Assessment Reform Act to help resolve property valuation disputes and streamline site acquisition processes;
    Ensuring the alignment of agencies’ budget requests with Department of Budget and Management guidelines and ensuring that proposals are thorough and submitted on time; and
  3. Enhancing coordination efforts among implementing agencies, development partners, local government units, and stakeholders to secure the timely approval of permits and certificates.

The report provides a comprehensive review of the country’s ODA portfolio, highlighting the substantial growth and strategic alignment of ODA funding with the Philippines’ key development priorities, especially those outlined in PDP 2023-2028 and the United Nation’s 2030 Sustainable Development Goals. It also presents important insights and recommendations to further enhance the country’s effective utilization of ODA funds.

-END-