Gov’t to explore other ODA sources

Other than China, Japan and Korea, the government has been conducting talks with other countries for extension of official development assistance (ODA) for priority projects, Socioeconomic Planning Secretary Ernesto Pernia said.

Japan continues to be the country’s largest development partner with $4.84 billion in the first half, accounting for 44.83 percent of the country’s total ODA loan portfolio.

It is also at the forefront of several big-ticket projects expected to be rolled out next year among which is the first phase of the Mega Manila Subway Project which would connect major business districts in Metro Manila.

During his visit to the country in October this year, Japanese Prime Minister Shinzo Abe committed one trillion yen ($9 billion) in investments and development assistance.

“Apart from Japan, we have had fruitful talks with China, Korea, Germany, Austria, Italy and Israel on various development projects in line with our priorities,” Pernia said.

Korea, through the Economic Development Cooperation Fund (EDCF) and Korea Eximbank has also been funding crucial projects like dams and airports in the country.

In November, Korea committed to provide a $1.7-billion credit facility to the Philippines to help implement the government’s priority programs in transport, energy and information and communications technology sectors.

Several projects, meanwhile, have been lined up for ODA financing by China. In October 2016, President Duterte received aid and investment pledges from Beijing worth $24 billion during his four-day state visit to China.

Japan continues to provide the most favorable terms for ODA with repayments of up to 40 years and an annual interest rate of 0.1 percent for civil works and 0.01 percent for consulting services.

Other projects lined up for financing via Japanese ODA are: PNR (Malolos-Clark Airport-Clark Green City Rail, Cavite Industrial Area Flood Management Project, and Malitubog-Maridagao Irrigation Project Phase II.