Phl incurs P129-B Covid debt

The Philippines has accrued approximately P129.3 billion in debt to finance the government’s response to the Covid-19 pandemic, the Department of Health (DoH) reported Monday.

According to Director Aleli Sudiacal of the DoH Bureau of International Health Cooperation, the amount was part of major loans from the World Bank and the Asian Development Bank, divided into six tranches.

Former Health Secretary Francisco Duque III described the debt as a “collective decision” involving various government agencies, including the Department of Finance, to combat the Covid-19 pandemic that struck the country in early 2020.

“We just wanted to make sure there would be enough vaccines. Therefore, I supported the decision to really protect our people from the raging pandemic,” Duque told lawmakers during a House committee hearing on the DoH’s budgetary performance in prior years.

“That’s all. There was no other purpose. We had no other motive,” Duque said.

However, panel vice chairperson Janette Garin, who headed the DoH during the Aquino administration, questioned the agency’s rationale.

“That’s a huge debt. Still, many people died, many health workers have not been paid, many hospitals are not being reimbursed, and we can’t even account if the medical supplies we bought have been used,” the Iloilo lawmaker said.

Sudiacal detailed that the country secured a loan of $100 million (P5.09 billion) under the Philippines Covid-19 Emergency Response Project (ERP 1) and requested additional financing of $485.2 million under the same category.

Additionally, the country borrowed $125 million (P6.3 billion) under the Health System Enhancement to Address and Limit Covid-19 (HEAL 1) project, and another $700 million under HEAL 2.

Sudiacal noted that the Philippines requested an additional $500 million under HEAL 3, but it did not materialize. Similarly, a $300 million loan under Philippines Covid-19 ERP 2 also did not transpire.