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By Darwin G. Amojelar Reporter
THE Philippine’s disbursement
of foreign aid for public projects and programs fell below target
last year as the use of funds from the Asian Development Bank (ADB)
declined by half, the National Economic and Development Authority (NEDA)
said.
Documents obtained from the
agency’s Project Monitoring Staff showed that total donor aid
disbursed last year fell 17.9 percent to $1.62 billion from $1.97
billion in 2006.
The government’s target for
official development assistance (ODA) disbursement last year stood
at $1.96 billion.
The country spent $1.03 billion
of project loans, a decline of 16 percent from $1.22 billion in
2006. Similarly, program loans went down by 21 percent to $593
million last year from $750 million in 2006.
“This is partly due to
closing/completion of four program loans amounting to $850 million
and 18 project loans amounting to $.1 billion,” NEDA said.
In terms of funding sources, the
agency noted spending declines with regards aid from the ADB at $419
million last year from $833 million the previous year. On ODA
sourced from other sources, including Australia, Austria, Belgium,
France, Germany, the International Fund for Agricultural
Development, Korea, Kuwait, NDF, the Netherlands, Organization of
Petroleum Exporting Countries, Saudi Arabia, and Spain, the amount
disbursed dropped to $185 million from $375 million previously.
Increases were noted for Japan
Bank for International Cooperation (JBIC) loans at $641 million from
$633 million previously, and for the World Bank at $377 million from
$133 million.
Projects funded by foreign donors
generally deal with infrastructure upgrade or improvement, and
require counterpart funds from beneficiary governments. Reduction of
these funds can lead to a delay in implementation or outright
cancellation.
NEDA also said the government
cancelled $124.77 million last year, 78.18 percent lower than the
$222.32 million in 2006. Of the total, ADB cancellations amounted to
$24.7 million; JBIC, $81.6 million; and the World Bank, $18.54
million.
These cancellations were agreed
upon with implementing and funding agencies and were due to
unutilized balances at the close of the loan, excess financing as a
result of foreign exchange rate movement, low demand for relending,
reduction in scope of projects and budget constraints, NEDA said.
As of last year, the total
cumulative ODA loans, which financed 125 ongoing projects, reached
$9.28 billion, of which $8.17 billion were project loans and $1.31
million, program loans.
By lender, JBIC continued to be
the largest source of ODA, accounting for $2.5 billion of the total,
followed by ADB with $2 billion, others at $1.9 billion, and the
World Bank at $1.8 billion.
ODA is defined as flows of
official financing administered with the promotion of the economic
development and welfare of developing countries as the main
objective, and are concessional in character with a grant element of
at least 25 percent.
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