Includes how major projects are financed and gives examples where relevant. Explains activities of the multilateral development banks in and other aid-funded projects where procurement is open to U.S. bidders.
Last Published: 7/18/2019

Official Development Assistance (ODA) from foreign funding agencies has been a key source of financing for major projects in the Philippines.  Multilateral organizations such as the World Bank (WB), the Asian Development Bank (ADB), the UN System; and bilateral institutions within the Governments of Japan (Japan International Cooperation Agency), the United States (U.S. Agency for International Development), and Australia (Australia Department of Foreign Affairs and Trade) are among the leading sources of ODA. 

According to the Philippine National Economic and Development Authority (NEDA), the total ODA Portfolio as of December 2016 amounted to US$15.60 billion consisting of 66 loans (US$12.21 billion) and 400 grants (US$3.39 billion).  Japan (GOJ-JICA) was the biggest source of loans with 36 percent share (US$5.62 billion), followed by World Bank and ADB with 20 percent (US$3.12 billion) and 19 percent (US$2.98 billion) shares, respectively. For ODA grants, the United States, Australia-DFAT, and the UN System were the three leading providers with 43 percent (US$1,343.73million), 21 percent (US$823.78 million), and 11 percent (US$381.64 million) shares, respectively.

In terms of distribution per sector for the ODA loans portfolio, the Infrastructure Development sector accounted for the largest share (47%) with US$7.39 billion assistance for 36 loans, followed by the Social Reform and Community Development (SR&CD) and Agriculture, Agrarian Reform and Natural Resources (AAR&NR) sectors with 25 percent and 13 percent shares, respectively.

The SR&CD sector was the major recipient of grants assistance with US$1,229.42 million or 36 percent share. The G&ID and the Infrastructure Development sectors followed, with 25 and 17 percent shares, respectively.


Total ODA by Development Partner in US$ million

Development partnerLoansGrantsTotal CountLoan Net Commitment (US$ M)Grant Amount (US$ M)Total ODA% Share on Amount
GOJ-JICA22-315,474.34149.325,623.6736.06
WB11-333,035.4689.003,124.4622.03
ADB13-412,881.40100.972,981.7819.12
USAID/MCC-6969-1,343.731,343.738.62
Australia-7373-823.78823.785.28
KEDCF/DFAT7-22522.3878.71601.093.84
UN System*5-120108.84381.64490.483.14
EU-1212-217.32217.321.38
GIZ/KfW3131626.1287.99117.110.73
Canada-DFAT-1111-74.1474.140.48
AFD191054.949.9264.860.42
OFID2-251.61-51.610.33
Italy1-328.275.6133.880.22
Austria1-122.12-22.120.14
AECID-1414-19.0019.000.12
NZAid-33-8.138.130.05
China-11-1.561.560.01
TIKA-33-0.900.900.01
NoRad-11-0.320.32-
TOTAL6629946612,205.483,392.0415,599.94100.00

The U.S., through USAID, allocated US$89.5 million in development assistance grant funds to the Philippines in fiscal year (FY) 2018. USAID activities are implemented through contracts, grants, and cooperative agreements with American and Philippine entities, and international organizations. USAID's programs in the Philippines encompass a wide range of activities aimed at accelerating inclusive economic growth; promoting democracy and good governance; improving basic education, with a focus on early grade reading; expanding quality health access; and strengthening environmental management and conservation.

U.S. bidders are welcome to join foreign-funded projects where International Competitive Bidding (ICBs) procedures are observed. Multilateral Development Banks (MDBs), such as the World Bank and the Asian Development Bank (ADB), observe this practice, as do U.S. Government agencies. The websites of these organizations are good sources of project and business opportunities and are updated regularly. Information on U.S. Government funding opportunities may also be found in the Federal Business Opportunities website: https://www.fbo.gov/, and Federal Grants (www.Grants.gov).

U.S. financing institutions such as the Export-Import (http://www.exim.gov) Bank and the Overseas Private Investment Corporation (OPIC; https://www.opic.gov) continue to explore opportunities in the Philippines.  OPIC has a regional office in Bangkok.  The Ex-Im Bank, the official export credit agency of the United States, provides export credit insurance, loan guarantees, and project and structured finance for U.S. exporters and foreign buyers of U.S. goods and services.

For more information on OPIC’s programs:
Geoffrey Tan 
Managing Director, Asia Pacific 
Overseas Private Investment Corporation 
U.S. Embassy, Bangkok, Thailand 

Phone: (66 2) 205 4027/4028 
Email: geoffrey.tan@opic.gov       

U.S. Trade and Development Agency (USTDA)

The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies.  USTDA links U.S. businesses to export opportunities by funding project preparation and partnership building activities that develop sustainable infrastructure and foster economic growth in partner countries.
USTDA facilitates U.S. business participation in the preparation and execution of infrastructure development projects.  The Agency helps build the infrastructure for trade, match U.S. expertise with overseas development needs, and facilitate business partnerships between U.S. industry and emerging markets.  These partnerships allow the Agency to target its investments toward projects that are most likely to be implemented using U.S. goods and services.
The Agency funds early-stage project preparation activities such as feasibility studies, technical assistance and pilot projects, which provide the analysis needed for projects to attract financing and reach implementation.

Additionally, USTDA creates market access for U.S. companies, connecting them with key decision-makers in emerging economies by hosting reverse trade missions, conferences, workshops, and trainings.  The Agency’s reverse trade missions bring overseas decision-makers to the United States to introduce them to the design, manufacture and operation of U.S. goods and services that can help advance their infrastructure development goals.

In the region, USTDA’s key areas of focus include supporting clean energy development and energy security, improving transportation and trade infrastructure, and deploying innovative ICT solutions. 

USTDA achieves an incredible rate of return on U.S. taxpayer dollars, generating $104 of U.S. exports for every $1 programmed.  The Agency has generated over $66 billion in U.S. exports since its inception, including over $4.9 billion new exports identified in FY 2018 alone.

USTDA’s regional office, covering all of Southeast Asia, is located at the U.S. Embassy in Bangkok, Thailand.  USTDA’s Southeast Asia staff members can be contacted either in the Washington, D.C.-area headquarters or in Bangkok.

In Thailand:
•              Brandon Megorden, Regional Manager for Asia, bmegorden@ustda.gov 
•              Rachaneekorn Sriswasdi, Deputy Regional Manager for Asia, srachaneekorn@ustda.gov
In Washington, DC:
•              Verinda Fike, Regional Director for South and Southeast Asia, vfike@ustda.gov
•              Alissa Lee, Country Manager, alee@ustda.gov
•              Jeffrey Philips, Country Manager, jphillips@ustda.gov
•              John Krotzer, Country Manager, jkrotzer@ustda.gov

USDA FAS Food for Progress
The USDA FAS Food for Progress program provides for the donation of U.S. agricultural commodities to priority developing countries (currently including the Philippines) committed to introducing and expanding free enterprise in the agricultural sector.  Donated commodities are monetized and proceeds are used to support agricultural development activities.  Food for Progress has two principle objectives: improve agricultural productivity and expand trade of agricultural products.  Food for Progress projects in the Philippines train thousands of farmers to improve farming methods, develop infrastructure (roads, electricity, etc.), establish and strengthen producer cooperatives, provide microcredit, and develop agricultural value chains.  Program Partners include private voluntary organizations, local governments, universities, and intergovernmental organizations.

For more information on USDA’s programs:
U.S. Department of Agriculture
Foreign Agricultural Service
Embassy of the United States of America
1201 Roxas Boulevard
Manila, Philippines
Tel: (632) 301-2000
Email: AgManila@fas.usda.gov


 

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Philippines Market Access Project Financing