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Japan still top source of ODA loans

business / Economy
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Japan still top source of ODA loans

By: - Reporter / @bendeveraINQ
/ 04:16 PM September 21, 2017

The Japanese government is the Philippines’ top source of official development assistance (ODA) at the end of the first half, the latest data from the state planning agency National Economic and Development Authority showed.

In a statement Thursday, Neda said outstanding ODA loans from Japan amounted $4.84 billion as of end-June, accounting for 44.83 percent of the total outstanding amount.

ODA loans from the Japanese government were being administered by the Japan International Cooperation Agency (Jica).

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“Japan has been our long-time development partner and we have established a strong relationship with them. They have one of the best loan terms,” Neda Undersecretary Rolando G. Tungpalan said.

Tungpalan noted that Jica loans under its special terms for economic partnership or Step have a 40-year payment period, slapped with only 0.1-percent annual interest for civil works on top of 0.01 percent for consulting services.

Besides Japan, the other top ODA sources were multilateral lenders such as the World Bank with $2.948 billion (27.31 percent of the end-June total) and the Manila-based Asian Development Bank with $2.174 billion (20.14-percent share).

The outstanding ODA loan portfolio as of June totaled $10.797 billion, with $8.197 billion across 54 project loans as well as $2.6 billion in seven program loans.

The disbursement level declined to $802.95 million during the first six months from $861.04 million from January to June last year.

The disbursement rate nonetheless rose to 86.68 percent in the first half from 71.38 percent a year ago.

Tungpalan said 23 of the 35 projects approved by the Neda Board so far during the Duterte administration will be financed by ODA.

Of the P1.235-trillion worth of Neda Board-approved projects, P1.074 trillion will be ODA-funded, Tungpalan said.

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Among the big-ticket infrastructure projects in the pipeline, Jica will provide ODA loans for the Metro Manila Subway Project, the Philippine National Railways North 2 (Malolos-Clark Airport-Clark Green City Rail) Project, Cavite Industrial Area Flood Management Project, as well as the Malitubog-Maridagao Irrigation Project Phase II, according to Tungpalan.

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TAGS: Japan, Japan International Cooperation Agency, Japanese government, Jica, National Economic Development Authority, official development assistance
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