ODA-funded projects hit $39.6B in 2024, up 6% —DEPDev

The total value of foreign Official Development Assistance (ODA)-funded projects in the Philippines stood at $39.6 billion in 2024, up 6% from $37.3 billion in 2023, according to the 2024 ODA Portfolio Review Report released by the Department of Economy, Planning, and Development (DEPDev).

In its ODA report, the DEPDev stated that the amount — spread across 426 loans and grants — included new loan commitments for infrastructure, which drove the year-on-year increase.

The agency stated that nine of the 17 new loans, worth $8.2 billion, provided funding support for the Marcos administration’s flagship infrastructure projects.

Among the projects that benefited from these loan commitments are the Laguna Lakeshore Road Network Project, Dalton Pass East Alignment Road Project Phase I, new funding for the Bataan-Cavite Interlink Bridge Project, Metro Manila Subway Project, and Infrastructure for Safer and Resilient Schools Project, according to DEPDev.

“The Philippine government has long recognized the importance of transformative investments, particularly those aimed at easing mobility constraints and advancing regional integration. Projects such as the North-South Commuter Railway can support and benefit present and future generations by enabling the spatial diversification of our growth engines and making our economy more resilient to shocks,” said DEPDev Secretary Arsenio Balisacan.

The report also showed that transport and connectivity infrastructure accounted for the largest share of last year’s ODA portfolio at $42.81 billion or 62.7% of the total, equivalent to 120 loans or grants.

Meanwhile, a total of 79 loans and grants valued at $6.4 billion, or 16% of the total, were listed under the governance and institutions development sector. 

The projects under this sector are focused on enhancing governance reforms, fiscal management, and institutional development. 

Social reform and community development represented the third largest share with $5.4 billion or 13.5%, accounting for 113 loans and grants allocated in health, education, social protection, and human capital development programs. 

DEPDev, likewise, reported 60 ODA-funded projects that included components supporting climate change adaptation, mitigation, and disaster risk reduction. 

These include 33 loans and 27 grants financing infrastructure resilience, transport decarbonization, climate-smart agriculture, and renewable energy, it said.

“Our whole-of-government approach aims to maximize assistance from our development partners by strategically aligning development financing with spending priorities that will accelerate our progress in attaining desired socioeconomic outcomes," said Balisacan.

"To fully realize the benefits of these financial commitments and ensure the timely delivery of results that benefit the ordinary Filipino, we urgently need to improve public-sector capacity for project preparation, coordination, and execution,” he added.

The 2024 ODA Report also outlined key lessons for improving project implementation, such as the following:

• advance early-stage project readiness
• ensure timely and predictable budgetary support
• address persistent implementation bottlenecks and common challenges
• strengthen institutional capacity and monitoring and evaluation units
• systematically integrate cross-cutting themes, such as gender and development and climate integration

In 2024, the DEPDev said the government completed six major ODA projects across different sectors, including the Department of Public Works and Highways’ (DPWH) Arterial Road Bypass Project Phase III and the Panguil Bay Bridge Project, “which significantly reduced travel time in Central Luzon and Northern Mindanao, respectively, thereby improving regional connectivity.”

Also completed were the DPWH’s Flood Risk Management Project for the Cagayan de Oro River and the Integrated Disaster Risk Reduction and Climate Change Adaptation Project in Pampanga which aim to strengthen flood protection systems and support local communities in building climate resilience.

Under the health and social services sector, the Department of Health (DOH), through the COVID-19 Emergency Response Project, delivered essential medical equipment, vaccines, and health infrastructure that helped prevent infection and reduce fatalities, while the additional financing for the Department of Social Welfare and Development’s (DSWD) KALAHI-CIDSS program supported inclusive post-pandemic recovery in poor and vulnerable municipalities.

Balisacan thanked the Philippines' development partners for their support through the ODA funding assistance.

"Their continued commitment plays a pivotal role in fostering sustainable growth, addressing key challenges, and uplifting the lives of Filipinos. By providing the much-needed funding support to our critical projects, ODA remains an essential catalyst in building a resilient, inclusive, and prosperous future for the Philippines," said the country’s chief economist. 

Under Republic Act No. 8182, or the ODA Act of 1996, the DEPDev—previously the National Economic and Development Authority or NEDA—is mandated to conduct the annual ODA Portfolio Review and submit its report to Congress. 

The review aims to assess the status of ODA-financed projects, identify implementation issues and concerns, and highlight results and outcomes to ensure strategic alignment with the Philippine Development Plan and the Sustainable Development Goals.

The review also aims to provide recommendations based on past performance and lessons learned to improve overall ODA utilization. —LDF, GMA Integrated News