September 5, 2024 | 12:00am
MANILA, Philippines — The guidelines on official development assistance (ODA) loans for funding of various projects in Bangsamoro have been approved, the Department of Finance (DOF) said.
In a statement, the Intergovernmental Fiscal Policy Board (IFPB) has approved the ODA guidelines that will allow Bangsamoro to access foreign-assisted projects and programs aimed at inclusive development.
The IFPB is co-chaired by Finance Secretary Ralph Recto and Bangsamoro Minister of Finance, Budget and Management Ubaida Pacasem.
Recto said the guidelines would allow Bangsamoro to unlock opportunities on infrastructure development and socioeconomic programs to create jobs, boost income and reduce poverty.
“Beyond financing, this will provide the Bangsamoro region with access to knowledge, technology transfers, capacity-building and experience from experts and development partners around the world,” Recto said.
As such, the ODA guidelines authorize the Bangsamoro government to contract loans, in cash or in kind, from governments of foreign countries, their agencies and instrumentalities or multilateral institutions and organizations.
Bangsamoro can now take out loans to finance investment, social and economic development projects.
This is provided that ODA loans must only be used in the absence of other financial instruments in the capital market and that it must contain a grant element of 25 percent.
Further, ODA funds for the region cannot be used for telephone programs, projects required by law to be handled by the private sector or for financing private corporations that have access to commercial credit.
The guidelines also included the Bangsamoro government’s instrumentalities that may be involved in the ODA loan process, the pertinent documents for technical and financial evaluation, as well as the procedure for the approval of ODA loans.
Recto said he is confident that the region can leverage opportunities, harness concessional ODAs effectively and manage partnerships with prudence and foresight.
Pacasem, for his part, said the ODA guidelines are a step toward the region’s fiscal sustainability and the achievement of its development plan.
The IFPB was created under the Bangsamoro Organic Law to deal with revenue imbalances and fluctuations in the regional financial needs and revenue-raising capacity of the region.
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