The Philippines is set to sign 25 official development assistance (ODA) agreements worth $10.3 billion with Japan, South Korea, and France.
“What’s obvious to us now are actually 10 ODA loans from Japan, 10 pipeline loans from Korea, and five loans from France. These three totals 25 ODA loan agreements with a total value of USD10.3 billion,” Finance Secretary Frederick Go told reporters.
According to the Department of Finance, 10 loans from Japan valued at $2.29 billion are slated for signing by the end of Japan’s fiscal year in March 2027. South Korea will provide 10 loans totaling $6.2 billion, while five loans from France, worth $1.83 billion, are expected to close this year.
The country’s total ODA portfolio rose 6% to $39.61 billion at the end of 2024, covering 92 project loans, 19 program loans, and 315 grants.
As the Philippines moves toward upper-middle-income status, Go said the government will rely less on concessional financing.
“We will be less reliant on concessional loans once the country moves into an upper-middle class. So we will have to find other sources of financing,” he said.
“For major projects like infrastructure, climate change, energy, and agriculture, I think we will become more reliant on PPP (Public-Private Partnership) projects which is why we are pushing for the PPP law for the past two years…with our 200 plus infra projects that are being offered for PPP, that will have to become the alternative to the concessional loans,” he added.
Go said the Asian Infrastructure Investment Bank is considering two projects for 2026, including a $500 million loan for the Luzon Digital Connectivity initiative and a $150 million facility for the Manila Sponge City flood-control project.
