Foreign-funded projects up 6% in 2024

Manila, Philippines – Foreign-funded projects rose by an annual 6 percent in 2024, driven by loan commitments on infrastructure, according to a yearly report by the Department of Economy, Planning, and Development (DEPDev).

Foreign financing, or official development assistance (ODA), reached $39.6 billion last year spread across 426 loans and grants, according to the 2024 ODA Portfolio Review Report. In 2023, the ODA tally was $37.3 billion.

Nine of the 17 fresh loans at $8.2 billion supported the administration’s flagship infrastructure program.

Among the projects that benefited from these loan commitments include the Laguna Lakeshore Road Network Project, the Dalton Pass East Alignment Road Project Phase I, new funding for the Bataan-Cavite Interlink Bridge Project and the Metro Manila Subway Project, and the Infrastructure for Safer and Resilient Schools Project.

“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 press release.

“Projects such as the North-South Commuter Railway can support and benefit present and future generations by enabling the spatial diversification of our growth engines and making our economy more resilient to shocks,” he added.

Transport and connectivity infrastructure accounted for the largest share of the 2024 ODA portfolio, both in value ($42.81 billion, or 62.7%) and number (120 loans or grants), the report showed.

A total of 79 loans and grants valued at $6.4 billion (16%) were also listed under the governance and institutions development sector.

Social reform and community development represented the third largest share with $5.4 billion (13.5%) for 113 loans and grants allocated in health, education, social protection, and human capital development programs.

In line with the government’s climate agenda, the central economic agency reported 60 ODA-funded projects that included components supporting climate change adaptation, mitigation, and disaster risk reduction. These include 33 loans and 27 grants financing infrastructure resilience, transport decarbonization, climate-smart agriculture, and renewable energy.

The 2024 ODA Report also outlined recommendations for agencies to:

+ advance early-stage project readiness;

+ ensure timely and predictable budgetary support;

+ address persistent implementation bottlenecks and common challenges;

+ strengthen institutional capacity and monitoring and evaluation units; and,

+ systematically integrate cross-cutting themes, such as gender and development and climate integration

In 2024, the government completed six major ODA projects across different sectors. Among the completed projects were the Arterial Road Bypass Project Phase III and the Panguil Bay Bridge Project, which significantly reduced travel time in central Luzon and northern Mindanao, respectively, thereby improving regional connectivity.

Also completed were the Flood Risk Management Project for the Cagayan de Oro River and the Integrated Disaster Risk Reduction and Climate Change Adaptation Project in Pampanga that aim to strengthen flood protection systems and support local communities in building climate resilience.