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THE
World Bank has blamed the country’s nonreadiness to
implement projects, the complexity of project designs
and the slow progress in policy reforms for the low
level of loan disbursements.
The bank
revealed that its loan disbursement rate for fiscal year
(FY) 2007 has been slower than year 2006 at 15.2
percent, and below the 20-percent disbursement target
for FY 2007.
“The
slow disbursement is attributed mainly to issues linked
to insufficient level of readiness, complex project
design, slow progress in policy reforms on which the
release of loans is hinged, and delays in budget
approval and/or release by the government,” the World
Bank said in a statement.
Actual
amounts disbursed cost $137.2 million and are almost the
same as the $138.8 million in fiscal year 2006.
However,
the Bank expects loan disbursement to pick up for fiscal
year 2008 with a planned disbursement rate rising to 31
percent. The Bank said the loans to be disbursed will
mostly be allotted to support government reforms in key
sectors.
The
World Bank said its loan commitments to the Philippines
have been increasing. Under its previous Country
Assistance Strategy, loan commitments only amounted to
$100 million to $200 million annually.
For 2006
and 2007, the loan commitments of the Bank amounted to
$410 million and $395 million, respectively. This
includes a $250-million Development Policy Loan released
in 2006.
Moving
forward, the Bank said new approaches to lending, closer
monitoring and simplification of designs made for all
World Bank-assisted projects will be implemented.
“Strengthening country systems, such as in procurement
and financial management, as well as in managing social
and environmental risks, will likewise be important,”
the Bank said.
For the
Philippine government’s part, Finance Undersecretary
Roberto Tan commended the participatory process of the
portfolio review.
Tan
emphasized the importance of working together to
harmonize efforts among development partners and to
strengthen and simplify business processes.
He said
various donor programs are now increasingly coordinated
in support of reforms in key agencies like the
Departments of Education and Health, as well as the
Bureau of Internal Revenue. |
