Phl bats for streamlining of ODA procedures

MANILA, Philippines - The Philippines is pushing for the streamlining of the official development aid (ODA) procedures to accelerate the implementation of various development projects, Finance Secretary Cesar Purisima said over the weekend.

Purisima conveyed the government’s position in various meetings with multilateral and bilateral partners on the sidelines of the recent 2012 World Bank and International Monetary Fund annual meetings in Tokyo, Japan.

In a dialogue with World Bank president Jim Yong Kim and other middle- income countries, Purisima said a more streamlined ODA process would ensure faster implementation of projects.

“In the Philippines, the President only has a single six year term. We need projects moving as fast as we can, and we hope our development partners can join us in ensuring that projects move from the drawing table to groundbreaking at a much faster pace,” Purisima said.

The Department of Finance is specifically pushing for the separation of project and finance evaluations.

Currently, projects go through the National Economic Development Authority – Investment Coordinating Committee (NEDA-ICC) and eventually the NEDA Board with a specific financing source already identified.

However, Purisima said that if projects are evaluated based on the financing commitments that agencies have already secured, the projects are tied to the rules of these specific entities that may sometimes result in delays.

“Another problem is that implementing agencies are forced to split their limited time in preparing projects and in looking around for financing,” Purisima said.

As a remedy, the Philippines is proposing that implementing agencies submit their projects to the NEDA-ICC without any financing commitments and the NEDA-ICC will evaluate the project based on its economic benefits.

If a project is deemed beneficial, the DOF, in coordination with the Development Budget Coordinating Committee (DBCC) will decide whether to fund the project through locally sourced revenues or through ODA.

Purisima said the DOF has been in talks with the Department of Budget and Management (DBM) and the NEDA for the plan.