Bangsamoro gov’t authorized to enter into foreign-aid deals under new ODA guidelines
THE Intergovernmental Fiscal Policy Board (IFPB) approved on Tuesday guidelines authorizing the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to contract its own official development assistance (ODA) funding deals.
The guidelines are expected to help bolster the region’s access to foreign assistance and support its development, the Department of Finance said.
Having separate ODA guidelines for the Bangsamoro could help unlock opportunities for infrastructure development and socioeconomic programs, Finance Secretary Ralph G. Recto, who co-chairs the IFPB, said during the signing.
“Beyond financing, this will provide the BARMM with access to knowledge, technology transfer, capacity-building, and a wealth of experience from experts and development partners around the world,” Mr. Recto said.
Last year, BARMM received $579.83 million in foreign grants and loans to support the region’s peacebuilding and livelihood efforts, according to the National Economic and Development Authority’s 2023 ODA portfolio report.
The region’s share was 5.44% of the P10.65 billion in total ODA received by the Philippines last year.
The approved guidelines authorize the Bangsamoro government to contract loans, either in cash or in kind, from foreign governments or their agencies, instrumentalities, and multilateral institutions or organizations.
ODA guidelines allow the Bangsamoro government to borrow for investment and social, and economic development projects, in the absence of other financial instruments on the capital markets. Such packages must also contain a 25% grant element.
Foreign assistance cannot be used on projects required by law to be handled by the private sector, or for supporting private corporations that have access to commercial credit, according to the guidelines.
It also lists the Bangsamoro government instrumentalities that may participate in the ODA loan process.
The guidelines also detail the procedure for approving BARMM ODA deals, in coordination with the National Government (NG).
Bangsamoro Minister of Finance, Budget and Management Ubaida C. Pacasem, who also heads the IFPB, called the guidelines “a step on the ladder” towards achieving the fiscal sustainability.
Created under Republic Act No. 11054 or the Bangsamoro Basic Law, the IFPB recommends fiscal policy adjustments and other tax collection measures to the NG to ensure that BARMM’s financial needs are met. — Beatriz Marie D. Cruz