Japan Extended $11.2 Billion in ODA to the PH in Q3 of 2020

Japan continues to be the Philippines’ major infrastructure development partner and the principal source of official development assistance (ODA).

According to the government’s Investor Relations Office (IRO), the Philippines has received a total of $11.2 billion in ODA, which includes low-interest loans and grants, from Japan as of the third quarter of 2020. Of the total, $9.9 billion or 89.1% went into infrastructure projects, mostly for the Duterte administration’s “Build, Build, Build” program.

The Asian Development Bank (ADB), the World Bank, and South Korea were among the other major source of ODA and concessional financing during the same period.

The ADB had provided $8.5 billion in ODA, $2.2 billion or 25.8% of which was used for the financing of exorbitant infrastructure projects.

The World Bank had extended concessional financing amounting to $5.3 billion, $700 million or 13.1% of which financed infrastructure projects.

South Korea’s ODA to the country reached about $700 million, $400 million or 61.9% of which went to infrastructure projects.

Aside from the national budget, ODA was among the leading funding sources for “Build, Build, Build”. However, the IRO also recently explained that the private sector’s participation in infrastructure projects had become “broader”.

A total of 240 public-private partnerships (PPP) worth ₱8.5 trillion were already under implementation or lined up as of end-February.

For this year, the government had allocated ₱1.17 trillion, equivalent to 5.9% of the country’s gross domestic product (GDP), for public infrastructure spending.

The government had already spend ₱824.9 billion or 4.5% of the GDP on infrastructure projects in 2020. This falls below the ₱1.05 trillion or 5.4% of the GDP that was spent in 2019.

Regardless, the “Build, Build, Build” program has generated 6.6 million jobs between 2016 and 2020 according to the IRO.

Source: Inquirer