The Philippines’ capacity to utilize foreign aid improved in 2014 as actual expenditures for projects and programs funded by official development assistance (ODA) doubled, the National Economic and Development Authority (NEDA) said on Wednesday.
Based on the ODA Portfolio Review for 2014, the disbursement level of loans for ODA-funded projects increased to $1.77 billion last year from $856 million in 2013, the agency said in a statement.
“This was mainly due to highest disbursement of program loans amounting to $1.28 billion and comprising about 73 percent of total disbursements made for the year,” the NEDA explained
The ODA portfolio for 2014 comprised 76 loans and 449 grants totaling $14.37 billion.
The disbursement rate —actual disbursement as a percentage of the target for the year — rose to 76 percent in 2014 from 60 percent in 2013.
“Drawdowns of program loans accounted for more than half of the disbursements,” the NEDA said.
The availment rate, or the percentage of the loan amount’s actual utilization against the loan schedule, also improved to 83 percent from 76 percent.
The disbursement ratio — the actual drawdown as against the available net loan amount — improved to 23.12 percent from 15.29 percent.
On the other hand, the grants financial performance of 50 percent fell two percentage points from 2013, the NEDA reported. It did not provide an explanation.
As of December 2014, $1.60 billion had been disbursed out of the $3.19 billion allotted for the 449 active grants, it said.
The World Bank was the biggest source of loans during the period, with a 32-percent share amounting to $4.54 billion. Following were Japan with $3.33 billion, the Asian Development Bank with $2.35 billion and the United States with $1.5 billion.
The infrastructure sector took the largest share of the loans portfolio in terms of commitment with 39 percent, followed by social reform and community development (SRCD) with 24 percent and governance and institution development (GID) with 22 percent.
The United States, the United Nations System and Australia were the top providers of grant assistance to the Philippines, providing $1.148 billion, $608.48 million, and $587.02 million, respectively.
For ODA grants, SRCD, agriculture, agrarian reform and natural resources, and GID registered the highest percentage shares at 37 percent, 25 percent and 18 percent, respectively.