House OKs bill ensuring effectiveness of ODA loans
THE House of Representatives with 166 votes has unanimously approved on third and final reading a bill seeking to ensure the effectiveness of Official Development Assistance (ODA) loans and grants.
Albay Rep. Joey Sarte Salceda, chairman of the House committee on ways and means, is the principal author of House Bill (HB) 10322.
The measure, which was authored and approved by both majority and minority legislators, allows the yield on recently-issued government bonds to serve as the discount rate benchmark when estimating the present value of debt service on grants, if such yields are lower than the 10% fixed rate set by the National Economic and Development Authority (NEDA).
“ODAs are useful when they work for the people. When the terms are fair, the spending is efficient, and the process is accountable and transparent, ODAs are good. This measure aims to keep them good,” Salceda said.
“The fact that both the members of the Majority and the Makabayan bloc were authors of this proposal shows the unanimity with which the House regards making our debts work for the Filipino people,” Salceda added.
If enacted, the bill will also continue to require that the grant portion of the ODA consist of at least 25% of the aid package.
It will also require that the ODA be administered with the specific objective of achieving sustained reduction of poverty and inequality.
The measure will also require studies on the project’s social and economic impact and the consultation of targeted groups.
