Philippines’ development loans, grants hit $37.29 billion in 2023

MANILA, Philippines — The Philippines amassed official development assistance (ODA) commitments amounting to $37.29 billion in 2023, according to a report released by the National Economic and Development Authority (NEDA) on Thursday.   

According to Republic Act 8182 or Official Development Assistance Act of 1996, ODA is a loan or grant administered "to promote sustainable social and economic development and welfare of the Philippines."

"ODA resources must be contracted with 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 law stated. 

The majority of ODA commitment is composed of project loans amounting to P24.94 billion, which is 67% of the total amount. There are also program loans amounting to $10.13 billion (27%) and grants worth $2.22 billion (6%). 

A program loan is a budget for general projects while project loans are for a specific development project. The NEDA reported a total of 90 project loans and 23 program loans. 

“The loan commitments reached a notable milestone in 2023, marking a significant 16% increase of $4.87 billion from the $30.20 billion committed in 2022. This surge continues the upward trend observed during the 2020-2022 period, characterized by heightened assistance in response to the COVID-19 pandemic,” NEDA said in its report. 

Infrastructure takes up the largest portion of the ODA, with $20.36 billion dedicated to it from 105 loans and grants. The second largest portion went to governance and institutions development, with $6.88 billion allocation. The rest went to agriculture, agrarian reform and natural resources, as well as social reform and community development. 

According to the NEDA, the Department of Transportation is the agency that got the largest portion of the ODA, taking $13 billion for its projects. The Department of Finance and the Department of Public Works and Highway followed, respectively. 

The top 10 largest ODA-funded projects are as follows: 

Japan is the number one source of ODA for the Philippines in 2023, pledging $12.7