THE Intergovernmental Fiscal Policy Board (IFPB) approved on Tuesday guidelines authorizing the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to contract its own official development assistance (ODA) funding deals.

The guidelines are expected to help bolster the region’s access to foreign assistance and support its development, the Department of Finance said.

Having separate ODA guidelines for the Bangsamoro could help unlock opportunities for infrastructure development and socioeconomic programs, Finance Secretary Ralph G. Recto, who co-chairs the IFPB, said during the signing.

“Beyond financing, this will provide the BARMM with access to knowledge, technology transfer, capacity-building, and a wealth of experience from experts and development partners around the world,” Mr. Recto said.

Last year, BARMM received $579.83 million in foreign grants and loans to support the region’s peacebuilding and livelihood efforts, according to the National Economic and Development Authority’s 2023 ODA portfolio report.

The region’s share was 5.44% of the P10.65 billion in total ODA received by the Philippines last year.

The approved guidelines authorize the Bangsamoro government to contract loans, either in cash or in kind, from foreign governments or their agencies, instrumentalities, and multilateral institutions or organizations.

ODA guidelines allow the Bangsamoro government to borrow for investment and social, and economic development projects, in the absence of other financial instruments on the capital markets. Such packages must also contain a 25% grant element.

Foreign assistance cannot be used on projects required by law to be handled by the private sector, or for supporting private corporations that have access to commercial credit, according to the guidelines.

It also lists the Bangsamoro government instrumentalities that may participate in the ODA loan process.

The guidelines also detail the procedure for approving BARMM ODA deals, in coordination with the National Government (NG).

Bangsamoro Minister of Finance, Budget and Management Ubaida C. Pacasem, who also heads the IFPB, called the guidelines “a step on the ladder” towards achieving fiscal sustainability

Created under Republic Act No. 11054 or the Bangsamoro Basic Law, the IFPB recommends fiscal policy adjustments and other tax collection measures to the NG to ensure that BARMM’s financial needs are met. — Beatriz Marie D. Cruz

ASIA-PACIFIC economies must bolster the use of digital technology to support economic growth while addressing the climate crisis, the Philippine representative to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) said.

“The true promise of digital transformation lies in its potential to address the most pressing challenges of our times, such as climate change, inequality, and poverty,” Millicent Cruz-Paredes, ambassador of the Philippines to Thailand and Philippine representative to ESCAP, told a forum on Tuesday.

“Our efforts must focus on building a robust digital infrastructure that supports the demands of a growing digital economy while being mindful of the environmental impact.”

She cited the need for governments to deploy digital solutions to the problem of climate and sustainability.

“Digital solutions must be seamlessly integrated into our strategies for climate resilience and sustainability, ensuring that they contribute to reducing carbon emissions and protecting our most vulnerable communities from the effects of climate change,” she said.

Businesses should also be encouraged to promote sustainable practices and adopt green technology to support growth and environmental protection, Ms. Cruz-Paredes said.

The region must focus on enhancing digital skills to ensure inclusive digitalization, she added.

The Asia-Pacific remains one of the most vulnerable regions to climate disasters, with average annual losses estimated at $1 trillion, according to ESCAP data.

The region is also home to both large- and small-scale emitters, with the latter being the most exposed to climate catastrophes.

In its latest Asia-Pacific Digital Transformation Report, ESCAP noted the correlation between a country’s digital transformation and its energy transition.

“Notably, digitalization is enabling all infrastructures to become steadily smarter, enhancing efficiencies in energy consumption and supply and facilitating the integration of renewables throughout the lifecycle of infrastructure from the design, construction, operation and management stages to reusing infrastructure waste,” ESCAP Executive Secretary Armida Salsiah Alisjahbana said in the report. — Beatriz Marie D. Cruz