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ODA: OFFICIAL DEVELOPMENT ASSISTANCE

 

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Volume of Total ODA to the Philippines

[source: ODA Annual Report 2001]

Japanese ODA to the Philippines

BATANGAS PORT DEVELOPMENTJapan has been the top donor country to the Philippines for the past 23 years. Despite its current economic difficulties, Japan will continue to support the Philippines, one of the most important and friendly countries to Japan. For the past ten years, more than half of the total foreign assistance to the Philippines has been extended by Japan. Japanese assistance to the Philippines has also been funneled through multilateral donors such as the World Bank, the Asian Development Bank (ADB), and various UN agencies.

WHAT IS ODA?

(1) The financial flows which meet the following:

  • Provided by official agencies or by their executive agencies;
  • Administered with promotion of the economic development and welfare of developing countries as its main objective;
  • Concessional in character and conveys a grant element of at least 25%.

(2) It consists of grant aid, technical cooperation, subscriptions and contributions to the U.N. agencies and international financial institutions, and government loans.

(3) ODA alone is internationally recognized as aid in the genuine sense.

With the cumulative amount of Japan ODA to the Philippines totaling US$9.4 billion, the Philippines ranks as the third largest recipient, next to Indonesia and China.

Through the decades, Japanese ODA has been contributing to Philippine’s development efforts in many EDSA/PASAY Road-AYALA Avenue Interchangefields, including irrigation, flood control, education, health care, earthquake detection, rural road network construction / improvement, water supply, and livelihood programs.

Types of Japanese ODA

The Philippines receives assistance from Japan in various forms. Among them, loans, grants, and technical assistance are the main forms of ODA. The breakdown of Japanese ODA in 2002 is as follows: US $181.1 million in loans, US $59.4 million in grants, and US $77.5 million in technical assistance (on a net disbursement basis).

Thrust of Japanese ODA

Respecting the self-help efforts of every developing country Japanese ODA, in principle, is extended upon the request of the recipient governments. In the case of the Philippines, government agencies and LGUs submit project proposals to NEDA for its evaluation. After the respective approval by NEDA and the ICC, the Philippine government makes an official request for its short-listed priority projects to the Japanese government, which then carefully appraises those projects and approves those that are most necessary and matured.

Embassy's Role

Responsible for ODA policy and programming, the Japanese Embassy coordinates with two Japanese development assistance implementing agencies operating under the Government of Japan, namely the Japan International Cooperation Agency (JICA) (www.jica.go.jp/philippine/index.html), which handles grant-aid and technical assistance and the Japan Bank for International Cooperation (JBIC) (www.jbic.go.jp/english), which handles loans.

For more information, contact the Embassy of Japan by email, ecosec@japanembassy.ph.

For Cultural Grant Aid, Grant Assistance for Cultural Grassroots Project click here.