Philippines secures $39 billion in ODA loans

The Philippines’ official development assistance (ODA) portfolio reached $39.61 billion in 2024, up 6 percent from the previous year, the Department of Economy, Planning, and Development (DEPDev) reported Thursday.

In a briefing, DEPDev Undersecretary Joseph Capuno said the expanded portfolio covers 426 active loans and grants, including 92 project loans, 19 program loans, and 315 grants. The increase was driven largely by new infrastructure-related loan commitments supporting the government’s flagship programs.

Japan remained the Philippines’ largest development partner with USD13.23 billion in active commitments across 82 loans and grants. Other key partners include the Asian Development Bank, World Bank, Asian Infrastructure Investment Bank, and South Korea.

Nine of 17 new loan commitments in 2024—valued at USD8.2 billion—supported major infrastructure initiatives such as the Metro Manila Subway Project, the Bataan-Cavite Interlink Bridge, and the Laguna Lakeshore Road Network.

“The Philippine government has long recognized the importance of transformative investments, particularly those aimed at easing mobility constraints and advancing regional integration,” DEPDev Secretary Arsenio Balisacan said in a statement.

Transport and connectivity remained the largest sector in the 2024 ODA portfolio, accounting for USD42.81 billion in value and 120 loans or grants. Governance and institutional reform followed, with 79 projects valued at USD6.4 billion, while USD5.4 billion supported health, education, and social development programs.

The report also identified 60 ODA-funded projects with climate-related components, including 33 loans and 27 grants focused on infrastructure resilience, agriculture, and renewable energy.

In 2024, the government completed six major ODA projects, including the Arterial Road Bypass Project Phase III and the Panguil Bay Bridge Project. Other completed efforts addressed flood risk management, COVID-19 emergency response, and social protection in vulnerable areas.

Balisacan emphasized that to fully realize the benefits of development financing, agencies must address persistent challenges in project execution.

“Our whole-of-government approach aims to maximize assistance by strategically aligning development financing with spending priorities,” he said. “We urgently need to improve public-sector capacity for project preparation, coordination, and execution.”

The 2024 ODA Portfolio Review also recommended improving procurement processes, advancing early-stage project readiness, and integrating cross-cutting themes such as gender equity and climate resilience.

Mandated to submit the review annually to Congress, DEPDev assesses the alignment of ODA-funded programs with the Philippine Development Plan and Sustainable Development Goals, while providing policy guidance to enhance aid effectiveness.