The government is seeking $7.07 billion worth of fresh official development assistance (ODA) from multilateral financial institutions in the next three years as part of its efforts to upgrade the country’s infrastructure, according to the National Economic and Development Authority (Neda).
Data showed the funding will cover 38 projects and programs that will be processed until 2018. The government is proposing these for funding to the Asian Development Bank (ADB), World Bank and the International Fund for Agricultural Development (Ifad).
Data showed that the government is seeking the largest funding support of $3.63 billion from the ADB, followed by the $1.89 billion from the World Bank and at least $90.54 million from the Ifad.
Neda data showed that of the amount, $500 million will be used to fund the Expanding Private Participation in Infrastructure Program, Subprogram 1, with another $500 million going to the Second Disaster Risk Management Development Policy Loan with Catastrophe-Deferred Drawdown Option (CAT-DDO).
Of the $500-million funding for the infrastructure program, $300 million will come from the ADB and the remaining $200 million from the Japan International Cooperation Agency (Jica).
“The program’s impact will be increased investment in infrastructure. The outcome will be improved private participation in infrastructure that will be achieved through policy reforms,” the Neda said. The $500 million needed for the Second CAT-DDO, on the other hand, will come from the World Bank. The amount was requested by the national government at the World Bank-International Monetary Fund (IMF) Spring Meetings in April.
As of September 2015, the project is still under consideration by the interagency Development Budget Coordination Committee.
Other big-ticket projects, many of which are being proposed for funding by the ADB, are the $400-million National Support for Social Protection Program; the $360-million Improving National Roads for Inclusive Growth in Mindanao project; and the Increasing Competitiveness for Inclusive Growth Program and Local Government Finance and Fiscal Decentralization Reform Program Subprogram 2, both costing $350 million.
The National Support for Social Protection Program covers the implementation of the Conditional Cash-Transfer program of the government. It is being implemented by the Department of Social Welfare and Development.
The Improving National Roads for Inclusive Growth in Mindanao project aims to improve 400 kilometers of road in 10 national roads in Mindanao. The project will be implemented by the Department of Public Works and Highways.
The Increasing Competitiveness for Inclusive Growth Program and Local Government Finance and Fiscal Decentralization Reform Program Subprogram 2 will be implemented by the Department of Finance.
“The principal objective of the program is providing support for the government’s key reform priorities aimed at employment generation by increasing competitiveness in the economy using an inclusive approach through the labor market,” the Neda said.
Earlier the Neda said the country’s total ODA portfolio as of December 2014 amounted to $14.37 billion, consisting of 76 loans worth $11.18 billion and 449 grants worth $3.19 billion.
The World Bank was the country’s biggest source of ODA loans with a 39.8-percent share, or $4.45 billion, followed by Jica and the ADB, with shares of 28.3 percent (worth $3.16 billion) and 20 percent ($2.23 billion), respectively.
For ODA grants, the United States, the United Nations System and Australia were the three leading providers, with shares of 36.1 percent ($1.148 billion); 19.1 percent ($608.5 million); and 18.4 percent ($587.02 million), respectively.
In terms of distribution per sector, infrastructure development accounted for the largest share at 39 percent of the loans portfolio-amounting to $4.32 billion for 34 loans; followed by the Social Reform and Community Development (SRCD) sector and the Governance and Institutions Development (GID) sector with 24-percent and 22-percent shares, respectively.
The SRCD sector was the major recipient of grants amounting to $1.19 billion (comprising 151 projects), or 37 percent of the total grants portfolio. The GID and the Agriculture, Agrarian Reform and Natural Resources sectors followed with 25-percent and 18-percent shares, respectively.