From among the World Bank’s nine client countries in East Asia, the Philippines has risen to fourth place ahead of Indonesia, Pacific Islands, and Vietnam as of July 2001.
From a disbursement ratio of 6.7 percent covering the periods July to December 2001, the Philippines improved to 11.5 percent between periods July to December 2002, an improvement of 72 percent
According to the World Bank report, a disbursement ratio of 11.5 percent means a possible annual ratio by end of June 2003, of at least 20 percent.
Gross disbursements of projects through the World Bank rose to $101 million from July to December 2002. That is an increase of 66 percent from $61 million for the same six-month period last year.
Last year’s disbursement ratio was only 15 percent, implying a project implementation period of 6.7 years. The much-improved disbursement ratio of around 20 percent would mean that the Philippines would reach the same level of disbursement it had prior to 1999 and would shorten the average project implementation period to the targeted five years.
The report, however, pointed out weak financial management capacity as a major constraint in project implementation.
"I am very pleased with the progress of (the Philippine) government in implementing most bank-financed projects. With this turnaround, the real winners are the beneficiaries of the projects, mostly the poor, because the faster the implementation is, the faster the delivery of benefits and services to them. Much of this improvement can be attributed to the timely interventions by both government oversight and implementing agencies and the adequate provision of counterpart resources," World Bank country director Robert Vance Pulley said in the report.
However, Pulley challenged the National Government to sustain timely and adequate provision of counterpart funds in the face of its tight budget situation.
Five projects that were cited were the following: Rural Finance III, Social Expenditure Management Project I, Transmission Grid Reinforcement Project, National Roads Improvement and Management Project, and Third Elementary Education Program. All these projects promote investments in human resources and infrastructure, a priority in the anti-poverty agenda of the government.
The community Based Resource Management (CBRMP) and the Local Government Finance and Development Project (LOGOFIND) were also cited as the two exceeded their disbursement performance for the past full year.