The Philippines’ total official development assistance (ODA) portfolio went up by 6 percent to USD39.61 billion in 2024, the Department of Economy, Planning, and Development (DEPDev) said.
In a briefing Thursday, DEPDev Undersecretary Joseph Capuno said that based on the 2024 ODA Portfolio Review Report, ODA-funded projects spread across 426 loans and grants.
“These consist of 92 project loans, 19 program loans, and 315 grants,” Capuno said.
Capuno said Japan continued to be the country’s biggest partner with USD13.23 billion in active commitments, supporting 82 loans and grants.
Other key partners include the Asian Development Bank, World Bank, Asian Infrastructure Investment Bank, and South Korea.
The ODA report showed that new loan commitments on infrastructure drove the increase last year, with nine of the 17 fresh loans worth USD8.2 billion supporting the Marcos administration’s Infrastructure Flagship Projects.
Among the projects that benefitted from these loan commitments include the Laguna Lakeshore Road Network Project, the Dalton Pass East Alignment Road Project Phase I, new funding for the Bataan-Cavite Interlink Bridge Project and the Metro Manila Subway Project, and the Infrastructure for Safer and Resilient Schools Project.
“The Philippine government has long recognized the importance of transformative investments, particularly those aimed at easing mobility constraints and advancing regional integration. Projects such as the North-South Commuter Railway can support and benefit present and future generations by enabling the spatial diversification of our growth engines and making our economy more resilient to shocks,” DEPDev Secretary Arsenio Balisacan said in a separate statement.
Transport and connectivity infrastructure accounted for the largest share of the 2024 ODA portfolio, both in value (USD42.81 billion) and number (120 loans or grants).
A total of 79 loans and grants valued at USD6.4 billion were also listed under the governance and institutions development sector.
The projects under this sector are focused on enhancing governance reforms, fiscal management, and institutional development.
Social reform and community development represented the third largest share with USD5.4 billion for 113 loans and grants allocated in health, education, social protection, and human capital development programs.
In line with the government’s climate agenda, DEPDev reported 60 ODA-funded projects that included components supporting climate change adaptation, mitigation, and disaster risk reduction.
These include 33 loans and 27 grants financing infrastructure resilience, transport decarbonization, climate-smart agriculture, and renewable energy.
“Our whole-of-government approach aims to maximize assistance from our development partners by strategically aligning development financing with spending priorities that will accelerate our progress in attaining desired socioeconomic outcomes. To fully realize the benefits of these financial commitments and ensure the timely delivery of results that benefit the ordinary Filipino, we urgently need to improve public-sector capacity for project preparation, coordination, and execution,” Balisacan said.
In 2024, the government completed six major ODA projects across different sectors.
These include the Department of Public Works and Highways’ (DPWH) Arterial Road Bypass Project Phase III and the Panguil Bay Bridge Project, which significantly reduced travel time in Central Luzon and Northern Mindanao, respectively, thereby improving regional connectivity.
Also completed were the DPWH’s Flood Risk Management Project for the Cagayan de Oro River and the Integrated Disaster Risk Reduction and Climate Change Adaptation Project in Pampanga that aim to strengthen flood protection systems and support local communities in building climate resilience.
Under the health and social services sector, the Department of Health (DOH), through the Covid-19 Emergency Response Project, delivered essential medical equipment, vaccines, and health infrastructure that helped prevent infection and reduce fatalities, while the additional financing for the Department of Social Welfare and Development’s (DSWD) KALAHI-CIDSS program supported inclusive post-pandemic recovery in poor and vulnerable municipalities.
The 2024 ODA Report, meanwhile, underscored the need for agencies to advance early-stage project readiness; ensure timely and predictable budgetary support; address persistent implementation bottlenecks and common challenges; strengthen institutional capacity and monitoring and evaluation units; and integrate cross-cutting themes, such as gender and development and climate integration.
“We are taking concrete steps to address persistent implementation gaps by enhancing project preparation, streamlining procurement processes, and strengthening institutional capacity. Efforts to align ODA more closely with national priorities and improve monitoring systems remain integral to maximizing development impact for all Filipinos,” Balisacan said.
The DEPDev is mandated to conduct the annual ODA Portfolio Review and submit its report to Congress.
The review aims to assess the status of ODA-financed projects, identify implementation issues and concerns, and highlight results and outcomes to ensure strategic alignment with the Philippine Development Plan and the Sustainable Development Goals.
The review also aims to provide recommendations based on past performance and lessons learned to improve overall ODA utilization. (PNA)