The Philippines, through the Department of Finance, is set to sign 25 official development assistance (ODA) agreements with other countries, Finance Secretary Frederick Go said Thursday.
“What’s obvious to us now are actually 10 ODA loans from Japan, 10 pipeline loans from Korea, and five loans from France. These three totals 25 ODA loan agreements with a total value of USD10.3 billion,” Go said at a briefing at the Social Security System office.
Separate DOF data showed 10 pipeline ODAs worth USD2.29 billion are targeted for signing within Japan Fiscal Year 2026, which ends March 2027.
Ten ODAs worth USD6.2 billion and five ODAs worth USD1.83 billion are targeted for signing this year.
ODA refers to loans or grants aimed at promoting sustainable social and economic development, contracted with foreign governments that maintain diplomatic, trade, or bilateral agreements with the Philippines.
As of end-2024, the country’s total ODA portfolio rose 6 percent to USD39.61 billion, comprising 92 project loans, 19 program loans and 315 grants.
The government is exploring alternative funding as the Philippines becomes less reliant on ODA.
“We will be less reliant on concessional loans once the country moves into an upper-middle class. So we will have to find other sources of financing,” Go said.
“For major projects like infrastructure, climate change, energy, and agriculture, I think we will become more reliant on PPP (Public-Private Partnership) projects which is why we are pushing for the PPP law for the past two years…with our 200 plus infra projects that are being offered for PPP, that will have to become the alternative to the concessional loans,” he added.
Go, meanwhile, said the Asian-Infrastructure Investment Bank (AIIB) is looking at funding two projects this year.
“I actually met with the AIIB representatives yesterday and they are looking at two projects for 2026. The first one is the Luzon Digital Connectivity. I believe that should be half a billion dollars,” he said.
The AIIB is also considering a USD150-million loan for the Manila Sponge City project.
“So those are the two that they are looking at but not certain yet, still discussing with the AIIB, DICT (Department of Information and Communications Technology), and MMDA (Metropolitan Manila Development Authority). The cooperation with AIIB continues to be robust,” Go said. (PNA)
