Department of Budget and Management (DBM) Secretary and Intergovernmental Relations Body (IGRB) Co-Chair Amenah F. Pangandaman expressed her optimism for the future of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) following the approval of the guidelines on Official Development Assistance (ODA) loans for the region.
Approved on September 3, 2024, by the Intergovernmental Fiscal Policy Board (IFPB)—one of the seven IGR bodies created under the Bangsamoro Organic Law (BOL)—the said ODA guidelines authorize BARMM to contract loans, in cash or in kind, from foreign governments, their agencies, and instrumentalities or multilateral institutions or organizations. Article XII, Section 6 of the BOL identifies ODA as one of the sources of revenues of the Bangsamoro Government.
“This accomplishment is proof of the hard work and unwavering commitment of the IGRB, specifically the IFPB, in supporting and ensuring sustainable economic growth for the region as it transitions towards substantial autonomy. With the issuance of the ODA guidelines, we are now reaping the fruits of our labor and finally fulfilling our dream of a BARMM that is thriving and Mindanao that shines as a land of promise,” Pangandaman said.
The IFPB is co-chaired by Department of Finance Secretary Ralph G. Recto and BARMM Minister of Finance, Budget and Management Ubaida C. Pacasem.
The ODA loans may be used to “finance the construction, installation, improvement, expansion, operation, or maintenance of public utilities, infrastructure facilities, housing projects, acquisition of real property, implementation of other capital investment projects, as well as social and economic projects for the welfare of the people of the Bangsamoro.”
This is provided that comparable instruments are not available in the capital market and that the ODA contains a grant element of at least 25%.
“As a daughter of Mindanao myself, I am hopeful and excited as ODA loans will be instrumental in making BARMM an investment destination like the rest of the Philippines. As I have said before, BARMM is no longer a neglected region but a priority in our Agenda for Prosperity,” the Budget Chief and IGRB Co-Chair said.
The guidelines likewise direct the National Government to assist the Bangsamoro Government in further strengthening capacity in ODA loan processing, as necessary.
“Rest assured that DBM is also always ready to support in this undertaking, whether through capacity building or knowledge sharing. As always, and with the support of President Ferdinand R. Marcos Jr., we will continue working together for lasting peace, good governance, and genuine prosperity in BARMM and Mindanao,” the Secretary concluded.
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