what is official development assistance?

8/14/2019 What is Official Development Assistance?

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Official Development Assistance(ODA)


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What is ODA?

Official Development Assistance (ODA) is theterm used to refer to what most people wouldcall aid.

To be counted as ODA, public money must begiven outright or loaned on concessional (non-commercial) terms, and be used to support thewelfare or development of developing countries.

- Organization for Economic Cooperation andDevelopment


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What is ODA?

Official development assistance are resourceflows provided by bilateral sources andmultilateral institutions with the objective of

promoting the economic development andwelfare of the recipient country.

Behind this altruistic intention, however, ODAhas been used as an instrument of foreign

policy of more developed countries to advancetheir political and commercial interests.

- National Economic and Development Authority


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What is ODA?

ODA is a loan or loan and grant administeredwith the objective of promoting sustainablesocial and economic development and welfare

of the Philippines.- Republic Act 8182 - Official Development

Assistance Act of 1996 (Section 2a)


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What Makes ODA Unique?

Concessional in nature

To qualify as ODA, the money given by the donorcountry/institution should have a grant

component of at least 25%.

Offered below market rates

Compared to government bonds or ordinary loans

given by banks or international financialinstitutions, accompanied by longer paymentperiods.


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Types of ODA

According to terms of assistance

Soft Loans

have interest rates, which may range from zero toseven percent, maturity periods ranging fromten to 50 years and grace periods of five to tenyears.

Grantshas no repayment obligation and are mainly

provided in the form of experts, consultancyservices, equipment, commodities and training.


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Types of ODA

According to donor

Bilateral

flows from official (government) sources directly toofficial sources in the recipient country.

Multilateral

core contributions from official (government)

sources to multilateral agencies where it isthen used to fund the multilateral agenciesown programmes.


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What Qualifies as an ODA Project?

It should be used to achieve equitable growth anddevelopment in (all) provinces

Improvement of economic and social service facilities

Priority to countryside development, ruralinfrastructure and economic zones under the PEZA

Project should be previously identified as a nationalpriority which is urgent or necessary

ODA should not be used solely for convenience,availability or accessibility


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Monitoring and Oversight

National Economic and Development Authority(NEDA)

annual review of the status of all projects financed

by ODA, identify causes of delays, reasons forbottlenecks, cost overruns, both actual andprospective, and continued viability

Commission on Audit

audit on each ongoing and completed project

Congressional Oversight Committee


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ODA Programming Process

Country ProgramReview

ProjectIdentification

Pipelining ofProjects

ICC EvaluationAnd NEDA

Approval

Donor AppraisalAnd Approval

Implementation


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Donor Institutions in the Philippines

Asian Development Bank (ADB)

European Union (EU)

World Bank

International Monetary Fund

United Nations (UN) and related agencies

Country-specific donor agencies (US AID,JICA, GIZ, AusAID, etc.)


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Microenterprise Access to Banking Services-4 (MABS-4) Program(USAid)


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E-Trikes Project (ADB)


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Current ODA Disbursements


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Resources

NEDA Microsite on ODA:http://www.neda.gov.ph/subweb/oda/ODA/oda.htm

OECD Definition of ODA:http://www.oecd.org/dac/stats/faq.htm

RA 8182 (including IRR):

http://www.neda.gov.ph/progs_prj/oda/odaAct.htm Data on ODA implementation:

http://www.aidflows.org/


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Resources

NEDA Microsite on ODA:http://www.neda.gov.ph/subweb/oda/ODA/oda.htm

OECD Definition of ODA:http://www.oecd.org/dac/stats/faq.htm

RA 8182 (including IRR):

http://www.neda.gov.ph/progs_prj/oda/odaAct.htm Data on ODA implementation:

http://www.aidflows.org/

what is official development assistance?

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