“Flexible funding modalities allow other interested parties to engage in development projects in the Philippines. This allows bilateral and multilateral partners to limit their exposure in specific development projects and provide space for private sector participation,” Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in an e-mail.
The model is defined as a “financing arrangement where the bilateral or multilateral partners mobilize funds from commercial or private financing institutions.” According to the bill, current ODA guidelines under Republic Act No. 8182 “do not explicitly provide a mechanism for ODAs in the blended financing approach.”
“Given the limited budget and financial resources of the government, more financing options and flexibility would be welcome,” he added.“While providing this option opens wide-ranging opportunities to engage new development partners, we have yet to see whether blended funding modalities will be the norm in future projects.