JICA to match 2009 level of ODA loans to RP

MANILA, Philippines - The Japan International Cooperation Agency (JICA) has committed to match and expand its 2009 level of official development assistance (ODA) loans amounting to roughly $700 million, the National Economic and Development Authority (NEDA) said yesterday.

The loans would be used mostly for various development projects in the Philippines.

NEDA Deputy Director General hopes that JICA would align its new country assistance strategy with the government’s next Medium-Term Philippine Development Plan (MTPDP) which it is currently drafting.

He said the government is now preparing for the new MTPDP which is the government’s blueprint for economic development for next six year.

“It is timely that JICA is developing a new country assistance strategy as the Philippine government is preparing for the next MTPDP. We hope that JICA’s country strategy would dovetail with the Philippines’ next development plan,” said Tungpalan during a meeting with Koki Hirota, director-general of JICA’s South East Asia 1 and Pacific Department.

Hirota led a JICA team during a recent visit to the Philippines as part of JICA’s undertaking to develop its next regional and country strategies for the Southeast Asian region.

Tungpalan welcomed the renewed offer of support by JICA to match and expand its 2009 ODA loans of $700 million.

He added that this level of assistance would also have to take into account the Philippines’ debt management strategy and fiscal space.

In addition, Tungpalan expressed appreciation for the announcement of Hirota that JICA is willing to support more programs and projects, especially in the areas of capacity building, operation and maintenance, and climate change.

“It is clear that there is a convergence of interests between the governments of the Philippines and Japan. It is essential that the two countries ensure the alignment of their development strategies, the effective and efficient usage of Japanese development assistance, and the communication of development results.

ODA loans help the government in managing its fiscal position.

This year, the government is looking at keeping the budget deficit at P293 billion this year from P298 billion recorded last year. In 2011, the budget gap is projected to hit P285 billion.