Government seeks $10.3 billion ODA loan deals – Go

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February 27, 2026 | 12:00am

MANILA, Philippines —   The Philippines is pursuing 25 additional loan agreements worth $10.3 billion from several countries, as well as sovereign loans for infrastructure projects, Finance Secretary Frederick Go said yesterday. This comes as the country approaches upper-middle income (UMIC) status that will end access to cheaper loans.

Speaking at a press briefing, Go said the Philippines is pursuing official development assistance (ODA) loans – 10 each from Japan and South Korea and five from France.

“These three – Japan, Korea and France – total 25 ODA loan agreements with a total value of $10.3 billion,” he said.

Last week, Go announced that Manila is targeting to sign 11 additional loan agreements worth ¥371 billion (around P139 billion) this year.

The country’s ODA portfolio grew by six percent to $39.6 billion in 2024, with Japan as the top development partner, accounting for $13.23 billion in active commitments.

In addition, Go said the Beijing-based multilateral lender Asian Infrastructure Investment Bank (AIIB) is looking at two projects for 2026, following a meeting yesterday.

“The first one is the Luzon Digital Connectivity, working with DICT (Department of Information and Communications Technology). I believe that should be about half a billion dollars,” he said.

Go said the lender is also looking at a $150-million Metro Manila sponge city project aimed at retaining water.

“We’re still discussing with AIIB together with DICT and MMDA (Metropolitan Manila Development Authority). Yes, two projects in 2026, apart from a list of another five to six other projects that we are looking at together. The cooperation with AIIB continues to be quite robust,” he said.

Go also said the UK-Philippines Growth and Investment Partnership Plus program delivered $18 million in ODA for technical assistance and project preparation.

This has led to $104 million in private sector financing, particularly to Maynilad, Negros and Citicore Renewable.

Go signaled that the government would likely pivot to public-private partnership projects (PPP) once it advances to the World Bank’s UMIC bracket.

“We will have to find other sources of financing. But I think – most importantly for the major projects, which are infrastructure, climate change, sustainability, energy and agriculture – I think we will have to become more and more reliant on the PPP projects,” he said.

The Philippines is moving a step closer to the World Bank’s UMIC tier after being stuck since 1987, but this could end access to cheap loans.

In the same briefing, Go said the government’s assumption is that all the exempted goods, such as semiconductors and major farm exports, will remain exempt from US tariffs, but have not received any communication yet.

”The US has to respond to 150 countries. So I think the communication has not yet arrived,” he said.

“What we are hopeful for, and what we assume it to be, is that if they apply the 15 percent tariffs on us, it will continue to apply on the goods that they were applying a 19-percent tariff on,” Go added.

US President Donald Trump recently raised US tariffs to 15 percent, following a Supreme Court ruling that struck down his earlier sweeping import duties.