The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) can now access foreign aids after the Intergovernmental Fiscal Policy Board (IFPB) approved guidelines for official development assistance (ODA) loans.
These guidelines will enable the BARMM to receive foreign assistance for projects and programs that support its inclusive development.
Co-chaired by Finance Secretary Ralph G. Recto and Bangsamoro Government Minister of Finance, Budget and Management Ubaida Pacasem, the IFPB was created under the Bangsamoro Organic Law (BOL) to deal with revenue imbalances and fluctuations in the regional financial needs and revenue-raising capacity of the BARMM.
“With these ODA guidelines, we are equipping the BARMM with the tools needed to shape its future and write its own success story. This unlocks limitless opportunities for the BARMM––from infrastructure development to socioeconomic programs that create jobs, boost incomes, and lift communities out of poverty,” Recto said.
“Beyond financing, this will provide the BARMM with access to knowledge, technology transfers, capacity-building and a wealth of experience from experts and development partners around the world,” he said.
Pursuant to the BOL, the ODA guidelines authorize the Bangsamoro government to contract loans, in cash or in kind, from governments of foreign countries, their agencies and instrumentalities or multilateral institutions or organizations.
Under the guidelines, the Bangsamoro government can take out loans to finance investment, social and economic development projects for the welfare of the people of the Bangsamoro, provided that ODAs should only be used in the absence of other financial instruments in the capital market and that it must contain a grant element of 25 percent.
Meanwhile, ODA funds cannot be used for telephone programs, projects required by law to be handled by the private sector, or for financing private corporations that have access to commercial credit.
The guidelines also detail the Bangsamoro government’s instrumentalities that may be involved in the ODA loan process, the pertinent documents for technical and financial evaluation, as well as the procedure for the approval of ODA loans to the BARMM in coordination with the national government,
With the ODA guidelines in place, Recto expressed confidence in the Bangsamoro government’s ability to leverage opportunities, harness concessional ODAs effectively and manage partnerships with utmost prudence and foresight.
He said the progress achieved by the IFPB is a clear reflection of the coherent and supportive relationship between the National Government and the Bangsamoro Government in realizing their shared goal of greater fiscal autonomy, self-governance and lasting peace for the people in the BARMM.
“For us in BARMM, this is more than just a tick on our to-do list, but a step-board on the ladder toward BARMM’s fiscal sustainability, toward the achievement of the Bangsamoro Development Plan, toward the advancement of the welfare of the people in BARMM, and toward our contribution to the achievement of our country’s sustainable development goals,” Pacasem said.
