Manila: The Philippines, represented by the Department of Finance, is poised to enter into 25 official development assistance (ODA) agreements with Japan, Korea, and France. Finance Secretary Frederick Go announced the impending agreements, which are valued at a total of USD10.3 billion, during a briefing at the Social Security System office.
According to Philippines News Agency, the agreements include 10 ODA loans from Japan, 10 pipeline loans from Korea, and five loans from France. Separate data from the Department of Finance (DOF) indicates that 10 pipeline ODAs worth USD2.29 billion are expected to be signed within Japan Fiscal Year 2026, concluding in March 2027. Additionally, 10 ODAs valued at USD6.2 billion and five ODAs worth USD1.83 billion are slated for signing this year.
ODA loans and grants are designed to support sustainable social and economic development, and are typically arranged with foreign governments that have diplomatic or trade agreements with the Philippines. By the end of 2024, the nation's total ODA portfolio had grown by 6 percent to USD39.61 billion, encompassing 92 project loans, 19 program loans, and 315 grants.
The government is actively seeking alternative funding sources as the Philippines' reliance on ODA decreases. "We will be less reliant on concessional loans once the country moves into an upper-middle class. So we will have to find other sources of financing," Go stated.
Addressing major projects such as infrastructure, climate change, energy, and agriculture, Go emphasized the increasing importance of Public-Private Partnership (PPP) projects. "With our 200 plus infra projects that are being offered for PPP, that will have to become the alternative to the concessional loans," he explained.
Furthermore, Go highlighted the Asian-Infrastructure Investment Bank's (AIIB) interest in financing two projects this year. "I actually met with the AIIB representatives yesterday and they are looking at two projects for 2026. The first one is the Luzon Digital Connectivity. I believe that should be half a billion dollars," he said. The AIIB is also considering a USD150-million loan for the Manila Sponge City project, with discussions ongoing between AIIB, the Department of Information and Communications Technology (DICT), and the Metropolitan Manila Development Authority (MMDA). "The cooperation with AIIB continues to be robust," Go concluded.
