MANILA, Philippines - Former dean of the University of the Philippines College of Law and International Law expert Merlin Magallona recently emphasized that Overseas Development Assistance (ODA) funding is essential to moving the Aquino administration’s Public Private Partnership (PPP) infrastructure programs forward, being the country’s “only source” of infrastructure funding.
Magallona stressed that the Philippine budget is enough to maintain government operations and services, however the country “is devoid of infrastructure funds, and is therefore dependent on ODA,” but that the administration’s current approach to approved ODA projects are a clear detriment to attracting more investments into the country. “P-noy has cancelled three ODA-funded projects in his first year in office. [The Philippines is] at the losing end,” he said “based on a NEDA report, ODA projects coming in the Philippines have been dwindling since 2001 to the present.”
One of the first moves of the current administration was to order a review of all infrastructure projects commenced under the previous administration leading to the delay, even cancellation of some ODA-funded projects. Magallona pointed out, however, that while this was an effort to stick to “daang matuwid” (the straight path), it was no justification for cancelling projects already in operation, many of which had undergone stringent approval processes by the NEDA - ICC.
“What happened in NAIA Terminal 3 is a psychological nightmare,” he said, adding that with cancellation, as is also the case of the Belgian funded Laguna Lake dredging, the donor country would most likely subject the recipient country to international arbitration proceedings. “In this case, determining which law should govern the case is very relevant,” he added.
Magallona said that the administration’s seeking cancellation reflects the administration’s inability to impose discipline, and such actions would affect the “palatability,” or how other countries regard the Philippines. “Cancellation will also affect the temper of international courts, which are governed by human personalities.”
He further questioned the protracted review of another ODA funded project, the French modular RoRo ports. “There is low social mobility of the islands in the Philippines. RoRo would connect the mentality of the people as well as [their] leaders.”
“RoRo is important in an archipelagic country [like the Philippines],” he said, adding that he was “amazed” that estimates made by the Philippine Ports Authority, based on JICA and ADB studies, initially placed the required number of ports for the country at 234, but subsequently pared this down to two.
“The administration needs a strategic center [in deciding for projects and economic development programs]. It should have a clear program of economic development. It should provide a checklist of what we need which would help in determining which ODA projects we enter into,” he concluded.