ODA availment hits P22B as of August

Availment of official development assistance (ODA) by the National Government (NG) reached P22.1 billion as of August, official documents show.

Documents show that for the the first eight months this year, the NG availed itself of P5.6 billion in program loans, much lower than the P22.44 billion programmed for this year.

As of August this year, the NG’s project loans reached only P16.5 billion as against P30.1 billion target for the whole of 2005.

Based on its financing program, the government is expected to raise up to $900 million or P50.4 billion in ODA funds this year.

This year, NG has been programmed to absorb $340 million from Asian Development Bank (ADB); $40 million from World Bank and $20 million from United States government.

The ADB released recently $100 million for the health sector development program. Another $100 million is expected to be released in 2007.

By November this year, NG expects to have used up half of the $150-million Microfinance Development Program (MDP). 

The release of the MDP was recently approved by the Development Budget Coordinating Council (DBCC). The other half of the loan is seen to be released to NG next year.

NG was supposed to avail itself of a $200-million power sector development program (PSDP) from ADB. Sources, however, said the conditions attached to the said loan are still under negotiations.

It was also learned that the size of the PSDP, which is expected to be co-financed by Japan Bank for International Cooperation (JBIC), is likely to be increased to $450 million.

In 2006, the WB is expected to provide a $150-million program loan for Sovial Expenditure Management Project II.  It is also expected to be co-financed by JBIC.

The US government is seen to release another $20 million to the Philippine government next year.

Sources said NG is comfortable with its current ODA drawdowns as it has already "overborrowed" for its funding requirement this year.

Instead of issuing only $850 million in global bonds, the NG borrowed recently $1 billion from the international bond market.  This left NG some $150-million in excess fund to be used for its financing requirement next year.

Next year, the NG is seen to raise $4 billion from the foreign funding sources and some P272 billion from domestic market. This is about the same level of financing requirement of NG for this year.