The government secured concessional official development assistance (ODA) financing and grants from development partners in 2024 to finance high-impact infrastructure projects under the “Build Better More” program and other critical development initiatives.
“The Department of Finance takes the responsibility over our people’s money very seriously. Because every peso entrusted to us by Filipinos is a symbol of millions of dreams, efforts, and hopes,” Finance Secretary Ralph Recto said in a statement.
“That is why we make sure that we enter into partnerships with very trusted partners and that the terms of our agreements are very concessional and cost-effective so we can deliver more projects that create lasting impact for generations,” he said.
The DOF said it signed 12 financing agreements worth $5.67 billion (P333.42 billion) for projects in infrastructure, transport, defense, digital technology, health and agriculture this year.
These include the third tranche of financing for the Metro Manila Subway Project (Phase 1), which is the country’s first-ever underground railway system.
Also signed were the financing agreements for the following infrastructure projects: the Dalton Pass East Alignment Alternative Road Project; the first tranche of the financing for the Bataan-Cavite Interlink Bridge Project; Samar Pacific Coastal Road II Project; the Laguna Lakeshore Road Network Project; the New Dumaguete Airport Development Project; the Maritime Safety Capability Improvement Project Phase III; and Infrastructure for Safer and Resilient Schools Project.
The DOF also sealed financing for the Philippines’ First and Second Digital Transformation Program, Second Sustainable Recovery Program; the Build Universal Health Care (UHC) Program, Subprogram 2; the Value Chain Innovation for Sustainable Transformation in Agrarian Reform Communities Project; and the Climate Change Action Program Subprogram 2.
It also secured $73.73 million (about P4.34 billion) worth of grants from bilateral and development partners for 13 projects in infrastructure, peace and development, climate adaptation and mitigation, water security and artificial-intelligence (AI)-based systems in agriculture, among others.
Grants are aids given by development partners with no obligation for repayment. These include the Capacity Development of Public Utility Vehicles (PUV) in Metro Manila and its Adjoining Areas; the Establishment of an Al-based Flood Forecasting and Warning System in the Laoag River Basin; the Master Plan on Comprehensive Sewerage System Development for Metro Cebu of the Metropolitan Cebu Water District; Partnership for Peace and Development in Mindanao; and the Integrated Urban Climate Action for Low-Carbon and Resilient Cities (Urban-Act) Project, among others.
The DOF said it also forged government-to-government (G2G) agreements with the government of the French Republic and the government of Sweden, along with a memorandum of understanding (MOU) and cooperation arrangement with the government of the Republic of Korea, through its Export-Import Bank of Korea.
All these will provide the Philippine government access to grants, technical assistance, concessional official development assistance and/or blended financing from the said governments for the priority programs and projects of the country, the DOF said.
The DOF said that with its prudent debt management strategy, the country’s financing mix stood at 77:23 in favor of domestic borrowings as of the end of November 2024.
It said the strategy allowed the Philippines to effectively mitigate foreign exchange risks, take advantage of the abundant liquidity in the country’s financial system and support the development of the local debt and capital markets.
It said the county’s debt remained manageable at 61.3 percent of GDP as of the third quarter of 2024.
