[ Manila Bulletin Online ] March 22, 2008
The Department of Finance (DoF) received P67.97 billion in project and program loans last year or $ 1.5 billion, higher than 2006’s $ 1.3 billion.
Based on DoF data, the government obtained P41.97 billion in program loans and R26 billion as project loans in 2007.
Of the program loans, the DoF said the biggest amount of P14.24 billion came from the Japan Bank for International Cooperation (JBIC) Power Sector loan, followed by the 12.10 billion from the World Bank and P12 billion from the Asian Development Bank (ADB). ADB also extended P3.12 billion for the micro-financing sector and finally the R468 million from the US Public Law 480 or PL-480 loan from Washington.
Under project loans, of which 19.26 billion are constructive cash, the DoF received P4.18 billion from the World Bank-International Bank for Reconstruction and Development, P1.38 billion from the ADB, P977 million from Overseas Economic Cooperation Fund of Japan/JBIC, and P190 million from US International Fund for Agricultural Development.
For this year the NG is programmed to receive $ 2 billion from commercial and official development assistance (ODA) loans. The $ 500 million dollar requirement to be sourced from the bonds market has already been transacted early this year.
ODA borrowing is also limited to $ 1.5 billion, same as in 2007. The ODAs are broken down as $ 600 million program loans and $ 900 million project loans.
DoF Secretary Margarito B. Teves said they are harmonizing all loans for 2008 to distinguish which of the financing can be put on hold. The DoF wants to get more program loans than project loans.
The difference between the program and project loans is that the former are loans incorporated in the government budget while the latter are project-specific loans where the donor provides equipment and civil works. Also in project loans, the government is required to absorb almost half of costs.
Teves said earlier that he prefers donor aids as source for the country’s foreign exchange requirements than the sale of ROP bonds.
______________________________________________________________________
