RP urged to step up use of ODA funds

The country’s donors are urging the Arroyo administration to improve its management of official development assistance (ODA) funds which reached a total of $12.1 billion as of September this year.

Richard Ondrik, chief country officer for the Philippines of the Asian Development Bank (ADB) said the Philippines must improve its ODA loan performance as it remains among the lowest in terms of disbursement ratio.

He noted that the ADB’s Philippine average is lower than the bank-wide average, but that it has steadily been improving from a low of eight percent recorded in 1999.

The country’s disbursement ratio improved to 11.3 percent in 2000 at a time when the ADB-wide average stood at 20.5 percent. This slightly improved to almost 12 percent last year versus the bank-wide average of 19.4 percent. It is ranked among the worst performers among its member nations.

ODA funding agencies, including the World Bank, the Japanese government, and the Japan Bank for International Cooperation (JBIC), commended the Philippines for initiatives in improving its ODA portfolio performance. But they also pointed out the need to take a more proactive role and take concrete action plans with clear target deliverables to improve management of ODA-assisted projects.

"Despite the difficulties with the budget deficit, we are pleased that the government continues to make progress in conjunction with the ODA community, to accelerate the implementation of priority projects on the ground," Ondrik said during a meeting between donors and representatives of the Philippine government.

The third joint Official Development Assistance (ODA) portfolio review was held yesterday with the National Economic and Davelopment Authority (NEDA) representing the Arroyo administration.

Socioeconomic Planning Secretary Dante B. Canlas said that since the last joint review held in September 2001, various initiatives have been undertaken by the Philippine government to enhance monitoring mechanisms, unclog bottlenecks and facilitate project implementation.

"I am pleased to report that we have made important progress in this regard," Canlas added.

The country’s current ODA loan portfolio as of September 2002 consists of 202 active loans with net commitments of $12.1 billion. Of these loans, 196 are project-type worth $11 billion while six are program-type worth $1.1 billion.

Of the country’s 202 active loans, accounts for 86 loans worth $7.1 billion comprising 58 percent of net commitments while the ADB accounts for 44 loans worth $2.3 billion (19 percent).

The WB has 25 loans worth $1.4 billion (12 percent), while other bilateral ODA funding agencies have 47 loans worth $1.3 billion (11 percent).

Canlas pledged that the government agencies involved would try to harmonize procedures in procurement, financial management, local government unit (LGU) performance, and other concerns expressed by the funding institutions.

Meanwhile, JBIC chief representative Mitsuru Taruki said the bank has established an all-time high disbursement record for two consecutive fiscal years (2001 and 2002).

He added that Japanese taxpayers‚ money for ODA had gained more attention in the recent years. There is now a growing awareness in Japan to use ODA money more effectively to improve living conditions in developing countries, he said.

WB country director for the Philippines Robert Vance Pulley while commending the Philippine government, said that it is important to address the other challenges that impinge on project implementation.