The Marcos, Jr. administration has successfully secured concessional official development assistance (ODA) financing and grants from development partners in 2024 to fund the high-impact infrastructure projects under the Build Better More program as well as other crucial development projects.
“The Department of Finance takes the responsibility over our people’s money very seriously. Dahil bawat piso na ipinagkatiwala ng Pilipino sa atin ay simbolo ng milyong-milyong pangarap, pagsisikap, at pag-asa. 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,” Finance Secretary Ralph G. Recto said.
In 2024, the DOF signed 12 financing agreements worth USD 5.67 billion (PHP 333.42 billion) for projects in infrastructure, transport, defense, digital technology, health, and agriculture.
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 likewise 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.
On top of these, the DOF has secured USD 73.73 million (about PHP 4.34 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.
The grants 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.
Moreover, the DOF 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.
With the DOF’s prudent debt management strategy, the country’s financing mix currently stands at 77:23 in favor of domestic borrowings as of the end of November 2024.
This 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.
With this, the county’s debt remains manageable at 61.3% of GDP as of the third quarter of 2024.
