The country’s utilization of official development assistance (ODA) loans continues to indicate positive fund management, the National Economic and Development Authority (NEDA) said on Tuesday.
As of the second quarter, the ODA loan portfolio amounted to $9.79 billion, composed of 11 program loans worth $3.63 billion and 53 project loans of $6.16 billion, the NEDA reported.
“[E]xcept for disbursement rate, absorptive capacity indicators —disbursement level, availment rate and disbursement ratio—improved in the second quarter of 2015 from the same period last year,” the NEDA said.
The disbursement level—actual ODA loan drawdowns—rose to $1.51 billion from $1.09 billion a year earlier, primarily due to an increase in disbursements of World Bank loans to $789.80 million from $204.26 million.
The World Bank was said to be the biggest source of ODA loans in the second quarter, with a 35-percent share amounting to $3.44 billion.
The availment rate—cumulative actual disbursements as a percentage of scheduled disbursements —increased to 84 percent from 80 percent, while the disbursement ratio—actual loan drawdowns against the available loan balance at the start of the year—also improved to 22 percent from 15 percent, the NEDA said.
The disbursement rate—actual disbursements as a percentage of the target for the period—fell to 89 percent from 107 percent a year earlier. This was still above a 70-percent threshold, the NEDA said.
Following the World Bank as the biggest ODA loan source were the Japan International Cooperation Agency with $3.13 billion (32 percent) and the Asian Development Bank with $2.58 billion (26 percent).
Total net commitment—total commitment less cumulative cancellations—fell to $47.98 million in June from $9.84 billion a year earlier, the NEDA said.
Of the total ODA loan portfolio, the infrastructure sector accounted for the largest share at 39 percent ($3.79 billion for 32 loans), followed by social reform and community development with 25 percent ($2.40 billion for 9 loans); governance and institution development with 21 percent ($2.06 billion for 5 loans); agriculture, natural resources and agrarian reform with 17 percent ($1.47 billion for 17 loans); and industry, trade and tourism with one percent ($64.27 million for one loan).
The NEDA said it is mandated through the ODA Act of 1996 to conduct an annual review of all projects financed by ODA, identify causes of implementation and completion delays or reasons for bottlenecks, cost overruns and continued project or program viability.