The Department of Finance (DOF) said Tuesday it obtained a commitment from the OPEC Fund for International Development (OPEC Fund) for technical assistance to address right-of-way (ROW) acquisition issues to support the smooth implementation of the government’s big-ticket infrastructure projects.
DOF Undersecretary for International Finance Group Joven Balbosa met with OPEC Fund president Abdulhamid Alkhalifa on April 18, 2024 at the sidelines of the World Bank-International Monetary Fund (WB-IMF) Spring Meetings in Washington, D.C. to foster renewed engagement and cooperation.
The OPEC Fund is the only globally mandated development institution that provides financing from member countries to non-member countries. It works with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world.
The OPEC Fund supported the Philippines through a $500,000 grant in 2023 for the pilot phase of the Food e-Voucher Program “Walang Gutom 2027”, which was conducted in partnership with the Department of Social Welfare and Development (DSWD), the World Food Program (WFP) and the Asian Development Bank (ADB).
The DOF said during the meeting, the OPEC Fund expressed its interest to co-financing the Public Financial Management Reform Program (PFMRP) Subprogram 1 with the Asian Development Bank (ADB).
The PFMRP will support the Philippine Development Plan (PDP) 2023-2028 and is aligned with the strategic pillar on accelerating infrastructure and long-term investments in ADB’s country partnership strategy for the Philippines for 2018-2023.
Subprogram 1 is aligned with the goals of the Paris Agreement because it will build a public financial management (PFM) system conducive to catalyzing climate finance through public-private partnerships (PPPs) and improving climate resilience and readiness among local government units (LGUs).
Both parties discussed the importance of the timely execution of the Framework Agreement of the Establishment of Private Sector Operations to allow the OPEC Fund to work and operate with private sector institutions, which is crucial in supporting small and medium-sized enterprises (SMEs) that are key to unlocking the economy’s growth potential.
The OPEC Fund also assured the DOF of its flexibility in supporting the Philippines’ needs, especially as it transitions to an upper-middle income country (UMIC).