The Philippines’ active official development assistance (ODA) funded projects increased 6 percent to $39.6 billion in 2024, driven by new infrastructure loan commitments, the Department of Economy, Planning and Development (DEPDev) said Thursday.
The ODA portfolio comprised 426 loans and grants, according to DEPDev’s 2024 ODA Portfolio Review Report.
New infrastructure loans accounted for the bulk of the increase, with nine of 17 fresh loans worth $8.2 billion supporting President Ferdinand Marcos Jr.’s administration’s Infrastructure Flagship Projects (IFPs).
Projects benefiting from these commitments include the Laguna Lakeshore Road Network Project, the Dalton Pass East Alignment Road Project Phase I, new funding for the Bataan-Cavite Interlink Bridge Project, the Metro Manila Subway Project, and the Infrastructure for Safer and Resilient Schools Project.
“The Philippine government has long recognized the importance of transformative investments, particularly those aimed at easing mobility constraints and advancing regional integration,” DEPDev Secretary Arsenio Balisacan said.
“Projects such as the North-South Commuter Railway can support and benefit present and future generations by enabling the spatial diversification of our growth engines and making our economy more resilient to shocks,” said Balisacan.
The report showed that transport and connectivity infrastructure made up the largest share of the 2024 ODA portfolio, both in value ($42.81 billion, or 62.7 percent) and number (120 loans or grants). Additionally, 79 loans and grants valued at $6.4 billion (16 percent) were allocated to the governance and institutions development sector, focusing on enhancing governance reforms, fiscal management, and institutional development.
Social reform and community development represented the third-largest share with $5.4 billion (13.5 percent) for 113 loans and grants in health, education, social protection, and human capital development programs.
In line with the government’s climate agenda, DEPDev reported 60 ODA-funded projects with components supporting climate change adaptation, mitigation, and disaster risk reduction. These included 33 loans and 27 grants financing infrastructure resilience, transport decarbonization, climate-smart agriculture and renewable energy.
“Our whole-of-government approach aims to maximize assistance from our development partners by strategically aligning development financing with spending priorities that will accelerate our progress in attaining desired socioeconomic outcomes,” Balisacan said.
“To fully realize the benefits of these financial commitments and ensure the timely delivery of results that benefit the ordinary Filipino, we urgently need to improve public-sector capacity for project preparation, coordination and execution,” he said.
The 2024 ODA Report also highlighted key lessons for improving project implementation, emphasizing the need for agencies to: advance early-stage project readiness; ensure timely and predictable budgetary support; address persistent implementation bottlenecks and common challenges; strengthen institutional capacity and monitoring and evaluation units; and systematically integrate cross-cutting themes such as gender and development and climate integration.
In 2024, the government completed six major ODA projects across various sectors. Among them were the Department of Public Works and Highways’ (DPWH) Arterial Road Bypass Project Phase III and the Panguil Bay Bridge Project, which significantly reduced travel time in Central Luzon and Northern Mindanao, respectively.
Also completed were the DPWH’s Flood Risk Management Project for the Cagayan de Oro River and the Integrated Disaster Risk Reduction and Climate Change Adaptation Project in Pampanga, aimed at strengthening flood protection and supporting local communities in building climate resilience.
Under the health and social services sector, the Department of Health (DOH), through the COVID-19 Emergency Response Project, delivered essential medical equipment, vaccines and health infrastructure. Additional financing for the Department of Social Welfare and Development’s (DSWD) KALAHI-CIDSS program supported inclusive post-pandemic recovery in poor and vulnerable municipalities.
“We extend our heartfelt gratitude to our esteemed development partners for their unwavering support through their ODA funding assistance,” Balisacan said.
“Their continued commitment plays a pivotal role in fostering sustainable growth, addressing key challenges, and uplifting the lives of Filipinos. By providing the much-needed funding support to our critical projects, ODA remains an essential catalyst in building a resilient, inclusive and prosperous future for the Philippines,” he said.
Under Republic Act No. 8182, or the ODA Act of 1996, DEPDev — previously the National Economic and Development Authority or NEDA — is mandated to conduct the annual ODA Portfolio Review and submit its report to Congress.
The review assesses the status of ODA-financed projects, identifies implementation issues, and highlights results to ensure strategic alignment with the Philippine Development Plan and the Sustainable Development Goals. It also provides recommendations to improve overall ODA utilization.
