Philippines ODA portfolio hits $32.4 billion in 2022

MANILA, Philippines — The Philippines’ active official development assistance (ODA) portfolio went up slightly to $32.40 billion last year, with the government shifting its focus on economic transformation from pandemic recovery.

The 2022 ODA portfolio review report released by the National Economic and Development Authority (NEDA) showed ODA loans and grants to the Philippines rose by 0.5 percent last year from $32.24 billion in 2021.

ODA covers loans or grants given to a country to promote its economic development.

These loans or grants are sourced from governments of foreign countries with whom the Philippines has diplomatic, trade relations or bilateral agreements, or which are members of the United Nations, their agencies, and international or multilateral lending institutions.

The country’s active ODA portfolio consisted of 106 loans amounting to $30.20 billion, and 320 grants equivalent to $2.20 billion last year.

There were only four program loans amounting to $1.02 billion, specifically for the coronavirus disease 2019 (COVID-19) response and recovery last year, significantly lower than the number and cost of loans for the same purpose in 2020 and 2021.

“The significant reduction in ODA devoted to addressing damages brought by COVID-19 reflects the country’s transition towards the new normal and is now focusing on achieving growth in the post-pandemic world,” NEDA Secretary Arsenio Balisacan said.

By sector, infrastructure received the biggest share of total ODA last year with 49.61 percent or $16.07 billion.

These include big-ticket projects such as the Capacity Enhancement of Mass Transit Systems in Metro Manila Light Rail Transit Line 1 South Extension; Cebu-Mactan Bridge and Coastal Road Construction Project; and the Second Health System Enhancement to Address and Limit COVID-19.

Also receiving substantial amounts of ODA last year were governance and institutions development sector with 22.10 percent or $7.16 billion; social reform and community development with 18.95 percent or $6.14 billion; agriculture, agrarian reform, and natural resources with 8.20 percent or $2.66 billion, and industry, trade and tourism with 1.13 percent or $370 million.

By implementing agency, the Department of Transportation received the largest share of the active ODA portfolio in 2022 as it accounted for 32 percent or $10.41 billion.

The Department of Finance had a 22 percent share amounting to $7.40 billion, while the Department of Public Works and Highways accounted for 15 percent or $4.72 billion of the total active ODA last year.