The government will fast-track the approval of official development assistance (ODA)-funded projects over the next three years to maximize access to concessional financing following the Philippines’ elevation to upper-middle income country (UMIC) status, economic planners said. Economy Secretary Arsenio M. Balisacan announced the move in an interview with BusinessWorld.
Balisacan explained that the Philippines will continue to qualify for some concessional loans for the time being, but the window is narrowing as the country’s income classification changes. The UMIC status, effective this year, reduces eligibility for highly subsidized financing from multilateral lenders, prompting the government to prioritize pending ODA projects to lock in favorable terms.
The accelerated approval process is expected to cover infrastructure, education, and health projects that were previously delayed by bureaucratic hurdles. Officials aim to complete the review and endorsement of these projects within the next three years to ensure the country benefits from remaining concessional loans before they become unavailable.