The Market Monitor Minding the Nation's Business
The Philippines is set to ink 25 official development assistance (ODA) agreements with foreign governments, Finance Secretary Frederick Go said Thursday.
Speaking at the Social Security System office, Go said the deals include 10 loans from Japan, 10 pipeline loans from Korea, and five loans from France, totaling USD10.3 billion.
Separate Department of Finance data show that 10 pipeline ODAs worth USD2.29 billion are scheduled for signing within Japan’s Fiscal Year 2026, ending March 2027. Meanwhile, ten ODAs valued at USD6.2 billion and five ODAs worth USD1.83 billion are targeted for signing this year.
ODA refers to loans or grants from foreign governments intended to support sustainable social and economic development, often tied to diplomatic, trade, or bilateral agreements with the Philippines.
As of end-2024, the country’s total ODA portfolio reached USD39.61 billion, covering 92 project loans, 19 program loans, and 315 grants, marking a 6-percent increase from the previous year.
Go said the government is exploring alternative financing to reduce reliance on concessional loans as the Philippines moves toward upper-middle-income status.
“For major projects like infrastructure, climate change, energy, and agriculture, I think we will become more reliant on PPP [Public-Private Partnership] projects…with our 200-plus infra projects being offered for PPP, that will have to become the alternative to concessional loans,” he said.
The finance chief also noted ongoing discussions with the Asian Infrastructure Investment Bank (AIIB), which is considering funding two projects this year: the Luzon Digital Connectivity project, estimated at USD500 million, and a USD150-million loan for the Manila Sponge City initiative.
“So those are the two that they are looking at but not certain yet, still discussing with the AIIB, DICT, and MMDA. The cooperation with AIIB continues to be robust,” Go said, referring to the Department of Information and Communications Technology and the Metropolitan Manila Development Authority.