Japan remains top source of ODA with over $10 billion in first half

JAPAN remained the Philippines’ top source of foreign aid in the first half, with $10.03 billion as of June, according to the National Economic and Development Authority (NEDA).

Active foreign funding from the Japanese government hit $10.082 billion in the first half with $10.03 billion in loans and $51.91 million in grants, according to NEDA. Japan accounts for 38.49% of official development assistance (ODA) received by the Philippines.

The Philippines’ active ODA portfolio was $26.193 billion, with $24.552 billion in the form of loans and $1.641 billion in grants.

Japan was also the biggest source of ODA funding as of March and also in 2019.

The Asian Development Bank was the second-largest source of foreign aid, accounting for 26.97% or $7.064 billion, followed by the World Bank with 18.9% or $4.951 billion.

The Asian Infrastructure Investment Bank (AIIB) became the fourth-biggest source of ODA as of June from ninth place as of March. AIIB funding amounted to $957.6 million, or 3.66% of the total.

Others in the top 10 were South Korea with ODA worth $631 million (2.4%); China $590 million (2.25%); the US $578 million (2.21%); France $422 million (1.61%); the United Nations $349 million (1.33%); and Australia $290 million (1.45%).

Other partners were the European Union ($138 million); Germany ($43.05 million); Italy ($39.86 million); the OPEC Fund for International Development ($30 million); Canada ($14 million); Spain ($9.8 million); and New Zealand ($3.89 million).

Meanwhile, the usage rate for ODA loans improved to 41.45% in the first half from the 35.55% a year earlier.

Drawdowns amounted to $10.176 billion out of total commitments worth $24.552 billion in the six months to June, after a 51% increase in total loans from $16.208 billion a year earlier. — Beatrice M. Laforga