The Department of Finance (DOF) said over the weekend it secured multibillion-dollar concessional financing for big-ticket infrastructure projects under the government’s “Build Better More” program and grants for various development projects to support the country’s rapid economic growth.
It said that since the Marcos administration took office in 2022, the DOF through its international finance group secured concessional financing for 16 project loans amounting to $6.47 billion to support the continuous implementation of key infrastructure projects and other priority initiatives of the government.
“We are grateful for the full support of our multilateral and bilateral partners, alongside the confidence placed in us by global investors. The magnitude of support we are receiving from the international community is a testament to the steadfast leadership, effective and independent foreign policy, and comprehensive socioeconomic agenda of President Ferdinand Marcos, Jr.,” Finance Secretary Benjamin Diokno said.
These include 10 loans amounting to $5.18 billion to support the high-impact infrastructure flagship projects (IFPs) under the BBM program such as the Bataan-Cavite Interlink Bridge Project supported by the Asian Development Bank (ADB), with pipelined co-financing from the Asian Infrastructure Investment Bank.
The project is poised to become one of the world’s longest marine bridges.
It said it also raised financing for the North-South Commuter Railway Extension Project, Davao Public Transport Modernization Project and the Three Priority Bridges Crossing Pasig-Marikina River and Manggahan Floodway Bridges Construction Project from the Japan International Cooperation Agency (JICA), the ADB and Export-Import Bank of China, respectively.
The government also secured about $7.04 billion in budget support financing through official development assistance (ODA) sources over the same period. The DOF said that along with $6 billion in global bonds issued in coordination with the Bureau of the Treasury (BTr) and other budget support financing sources, loan proceeds help bridge the programmed fiscal deficit consistent with the Medium-Term Fiscal Framework (MTFF).
“As laid out in the Philippines’ first-ever MTFF, the government aims to bring down the country’s debt-to-GDP ratio to less than 60 percent by 2025, cut the deficit-to-GDP ratio to 3 percent by 2028 and maintain infrastructure spending at 5 percent to 6 percent of GDP annually,” the DOF said.
The DOF’s IFG also processed grants, technical assistance and other bilateral agreements between July 1, 2022 and Dec. 15, 2023.
Diokno said the prudent fiscal management encouraged global investors and development partners to support the government’s infrastructure program and other development projects through concessional loans and grants.
“Rest assured, the DOF is strongly committed to pursuing sustainable debt management to fund the country’s priority investments which are critical to delivering positive socioeconomic outcomes and advancing rapid economic growth,” he said.