The approval of the guidelines on Official Development Assistance (ODA) loans for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) is a big help to make the region an “investment hub,” Budget Secretary Amenah Pangandaman said Wednesday.
“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,” Pangandaman, who also acts as co-chair of the Intergovernmental Relations Body (IGRB), said in a statement.
Pangandaman said the approved guidelines on ODA loans for BARMM is proof of the hard work and unwavering commitment of the IGRB, specifically the Intergovernmental Fiscal Policy Board (IFPB), in supporting and ensuring sustainable economic growth for the region as it transitions towards substantial autonomy.
She said the issuance of the ODA guidelines is vital in fulfilling the Marcos administration’s “dream of a BARMM that is thriving and Mindanao that shines as a land of promise.”
“Rest assured that DBM is also always ready to support in this undertaking, whether through capacity building or knowledge sharing,” Pangandaman said.
“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,” she added.
The IFPB, one of the seven IGR bodies created under the Bangsamoro Organic Law (BOL), approved on Wednesday the ODA guidelines which 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.
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 percent.
Under the guidelines, the national government is directed to assist the Bangsamoro Government in further strengthening capacity in ODA loan processing, as necessary. (PNA)
