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THE government has secured more official development
assistance (ODA) from foreign donors, with the Asian Development
Bank (ADB) approving a higher loan assistance to the Philippines
this year to fund agrarian, health and energy projects.
Tom Crouch, ADB deputy director
general for Southeast Asia, told reporters that for this year the
Manila-headquartered lender has allotted $750 million in loan
assistance, 28.6 percent higher than last year’s $583 million.
Crouch attributed the increase in
lending to the country’s improved fiscal situation. As of last
year, the ratio of the government’s budget deficit to gross
domestic product (GDP) stood at 0.9 percent.
Projects lined up for ADB loans
are the Development Policy Support Project worth $250 million; the
Agrarian Reform Communities II, $ 80 million; Support for the
Sustainable Healthcare and Investment Program, $50 million; Justice
Reform Program, $300 million; Rural Electrification Cooperative, $40
million; and Energy Efficiency, $30 million.
In 2009, the ADB will support the
Financial Market Regulation and Intermediation Program for $200
million; Development Policy Support Project Subprogram III, $200
million; Metro Manila Urban Services for the Poor Program, $40
million; and Support for National Transmission Corp., $250 million.
As of last year, the cumulative
aid from ADB amounted to $2 billion, with disbursements at $419
million.
Separately, the Bangko Sentral ng
Pilipinas (BSP) approved a government plan to borrow from the German
lender KFW for local government unit (LGU) lending and support for
the health sector reforms.
BSP Deputy Gov. Armando Suratos
told reporters that the Monetary Board has approved the plan to
borrow 10 million euros from KFW. This amount would benefit the
Municipal Development Fund Office (MDFO) of LGUs and Health Sector
Reform Program (HSRP) of the Department of Health.
MDFO promotes the acceptability
of borrowing as a means of financing a wide range of local
government investments.
HSRP addresses the inequities and
inefficiencies in the delivery and financing of health services. The
loan would mature in 40 years and has a 10-year grace period, and
carries an interest rate of 3.75 percent.
--Darwin G. Amojelar and Maricel E. Burgonio
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