THE Department of Finance (DOF) and the National Economic and Development Authority (Neda) said it’s still business as usual when it comes to official development assistance (ODA).
Finance Secretary Carlos G. Dominguez III told reporters on Monday that the suspension of talks with countries which voted in favor of the United Nations Human Rights Council (UNHRC) resolution “will not have a significant impact on the country.”
Dominguez said the suspension will not affect the existing ODA grants and loans that are being implemented. For projects that may be affected, assistance from multilateral development banks (MDBs) can be sought by the government, he added.
“All proposed engagements with said countries except for one small project loan in the amount of €21 million are technical assistance grants and hence will not significantly affect the infrastructure program of the government,” Dominguez said.
“In any case, multilateral development financial institutions and other bilateral partners have signified their intention to finance the said €21-million [project],” he added.
The finance secretary also said the rates being offered by these countries are comparable to those offered by multilateral development banks and other bilateral partners.
Dominguez said total grants on record amounts to $377.43 million from these countries. Australia accounts for $228.89 million, followed by Italy with $4.71 million.
Other countries include Spain with $0.57 million; France, $6.72 million; and Germany, $151.31 million. The list included France and Germany because these two countries sponsored the resolution.
No longer on table
Neda sources, meanwhile, told the BusinessMirror that projects such as those mentioned in news reports—the Trade, Inclusive Growth and Economic Reform (Tiger) for the Philippines and the Public Financial Management Program for Institutions and Infrastructure (PFMP-II)—were no longer on the table even before the UNHRC resolution.
The $56.25-million Tiger project aimed to help the Philippines achieve sustained and inclusive growth by connecting the Philippines with the global economy: aid for trade and improving competitiveness through domestic regulatory reform.
The project also aimed to help the Philippines create better jobs and increase inclusiveness; respond to emerging economic issues; and strengthen its economic institutions.
In terms of the $25.31-million PFMP-II project, Neda documents said it aimed to improve transport infrastructure to facilitate economic activity, focusing on increasing spending on and improving connectivity on transport infrastructure.
The project will assist the national and local government agencies to manage timely and transparent procurement of services in delivering infrastructure projects, and improve planning and prioritization of transport infrastructure across service delivery agencies.
Sources told this newspaper that both projects were no longer being considered for Australian financing as far back as November 2018. “[It’s] business as usual as far as Neda is concerned,” a source told the BusinessMirror. “There is ongoing discussion with bilateral ODA governments regarding ongoing development cooperation.”
DFA in discussions
Neda sources also told BusinessMirror that the Department of Foreign Affairs (DFA) has ongoing discussions with the countries involved in the UNHRC.
These discussions are done, according to a source, with “expectations that issues here will turn out positive for the Philippines, as far as development cooperation is concerned.”
As of December 2018, the Neda still included the Tiger and PFMP-II in its pipeline of ODA projects along with other projects to be financed by Austria, Germany and the United Kingdom. No updated pipeline of projects is available to the public as of press time.
Palace takes back denial
Malacañang on Monday backtracked on its earlier denial of the existence of the confidential memorandum from the Office of the President, but played down the economic impact of its order suspending negotiations, and the signing of loan and grant agreements with the 18 countries.
Presidential Spokesman and Chief Presidential Legal Counsel Salvador S. Panelo changed his tone on the August 27 confidential memorandum as he explained that President Duterte had a memory lapse and had “forgotten momentarily” that he indeed ordered the Executive Secretary Salvador C. Medialdea to do it.
According to Panelo, it was only when the President was shown a copy of the confidential memorandum that he remembered calling Medialdea about it.
“I asked him about it, he said, ‘I did call at the height of the Iceland resolution.’ But somehow because of work, probably, when I asked him about it, he momentarily forgot it. But he said, I maintain that memorandum. I instructed him to do that at the height of the Iceland resolution. So I asked him, ‘do you still maintain that?’ [And Duterte replied] Yes,” Panelo said in a television interview on Monday.
The President, he said, argued that the Philippines was “insulted by the Iceland-led resolution, calling for an independent investigation into the human-rights situation in the country. The Palace has since pointed out that Iceland— one of the countries condemning the alleged human-rights violations in the country —allows abortion of unborn children.
Panelo also defended the President’s suspension order, saying it will “not drama-tically, even slightly, impact the country’s economy.” Echoing Finance Secretary Carlos G. Dominguez III, Panelo said the existing loans and agreements will not be affected.
Malacañang also lashed out at critics who said the move is “ill-advised,” “heartless” or based on “false pride,” arguing that the President’s consistent position is that he will not “compromise the nation’s dignity over any amount of foreign loan, or even aid or grant.”
In fact, Panelo noted, “the President has rejected in previous occasions offers of assistance with any condition that would interfere with our domestic policies. This policy remains unchanged. And it will not waver.”
Based on the memorandum signed by Medialdea, the suspension order will stay pending the assessment of the Philippines’s relations with other countries.
With a vote of 18 affirmative, 14 negative and 15 abstentions , the Iceland-proposed resolution was adopted in July by the UNHRC, which is composed of 47 countries.
The 18 countries that backed the resolution are Argentina, Austria, Australia, Bahamas, Bulgaria, Croatia, Czech Republic, Denmark, Fiji, Iceland, Italy, Peru, Mexico, Slovakia, Spain, Ukraine, the United Kingdom including Northern Ireland and Uruguay. Cai U. Ordinario and Bernadette D. Nicolas