Cash method of loan availment - is a scheme whereby the borrowers received actual cash proceeds from the lender.

Commodity loans - are foreign loans in the form of goods received for the direct use of specific projects and/or goods which are converted into and made available in Philippine currency through certain government instrumentalities to finance specific projects.

Constructive cash loans - are foreign loans made available by any foreign bank or lending institution which may be disbursed only upon prior authority from the borrower to pay for goods and services.

Development Project - shall refer to any special activity assigned to an agency which cannot be easily undertaken as part of its regular operations because of a need for immediate implementation, non-recurring nature, difficulty of operating under existing administrative arrangements; and/or specific deadline for completion. They may include infrastructure projects intended to accelerate the development of identified locations, areas or population centers, as the construction of roads/bridges and irrigation facilities.

Direct payment method of loan availment - is a scheme whereby the lender pays directly the borrower's creditors. This may include progress payments on contracts based on agreed financing, purchase or supply of goods and services and interest due on the loan and other charges.

Existing Working Fund - refers to an active fund which is deposited by the Foreign Lending/Donor Institution (FLDI) to the account of the Treasurer of the Philippines (TOP) as of June 30, 1994, per the attached List of Projects with Working Funds.

Foreign exchange cost financing - refers to the foreign exchange currency payments from the proceeds of the loan made directly by the lending institution to the creditors of the Philippine government abroad.

Foreign grants - are assistance in cash or in kind covered by agreements with foreign governments, institutions, or individuals for purposes of financing specific projects and/or procurement of goods and services without any obligation on the part of the donees to repay.

Foreign loans - are indebtedness covered by loan agreements entered into by and between the Republic of the Philippines and foreign/international financial institutions, governments or entities, availed of by national government agencies or for relending to government-owned and/or controlled corporations to finance specific projects and/or procurement of goods and services under deferred payment arrangements or contracts which are to be repaid in accordance with the loan agreement.

Foreign-Assisted Projects (FAPs) - shall include projects partly or fully financed by foreign loans and foreign grants.

Forward Obligational Authority (FOA) - refers to the certificate of commitment or authority given by the DBM to a national government agency certifying that funds shall be available to cover loan proceeds and peso counterpart requirements for specific project implementation. This will serve as an assurance that the loan proceeds and the peso counterpart fund requirements are included in the long-term capital program of the national government.

General Allotment Release Order (GARO) - is a comprehensive authority issued to all agencies in general, to incur obligations not exceeding an authorized amount during a specified period for the purpose indicated. It shall cover expenditures common to most, if not all, agencies without need of special clearance or approval from a competent authority.

Loan availments - are amounts in foreign currency actually withdrawn or utilized out of proceeds of such loans through any or combinations of these methods.

Loan availments by means of Letter of Credit through commercial banks of suppliers - This is an availment of foreign exchange in suppliers' country whereby upon request of the borrower, the lender issues to the commercial bank its irrevocable agreement to reimburse such bank for payments made by the lender under a Letter of Credit (LC).

Loans in cash - are actual cash proceeds from foreign loan credited to the account of the Treasurer of the Philippines with the Bangko Sentral Ng Pilipinas or any authorized government depository bank readily available for disbursements.

Loans through supplier's credit - are foreign loans availed of solely for the procurement of goods on a deferred payment arrangement or contract wherein the supplier directly transmits the goods and receives the repayments through the banking system.

New Working Fund - refers to the initial deposit and/or replenishments to the working fund after June 30, 1994.

Non-Cash Availments Authority (NCAA) - is an authority granted by the DBM to government agency to account for the cash equivalent of loan proceeds availed of through suppliers credit/constructive cash.

Obligational Authority (OA) - refers to the AA issued by the DBM to government agencies as the budgetary authorization for the incurrence of obligation.

Peso cost financing - refers to the component of the project cost to be financed from the proceeds of the loan which are converted into Philippine currency, based on the prevailing exchange rate and to the extent of financing as stipulated in the agreement.

Peso counterpart - refers to the component of the project cost to be financed from government-appropriated funds, as part of the government's commitment in the implementation of the project. In the case of government-owned and/or controlled corporations, the total peso counterpart may be constituted out of the equity contribution of the national government and/or internally generated funds.

Project Engineer - is an individual who performs duties similar to that of project manager, but whose responsibility is lesser due to the relatively smaller size or simpler characteristic of the project.

Project Manager - is an individual with the necessary academic preparation and work experience to enable him to conceptualize, plan, implement and manage a development project of the government who is appointed to such position. Project Managers shall be integrated into the government career service despite the temporary nature of projects to which they are assigned.

Reimbursement method of loan availments - is a scheme whereby the government, through its instrumentalities, after having made payments from its own resources for procurement of goods and services including civil works eligible for financing under the loan, submits to the lender for approval of the application for reimbursements. Upon approval of the application, the lender makes payments/reimbursements to the borrower. This may involve progress payments on contracts in accordance with an agreed percentage or portion of the appropriate category in the allocation of proceeds of loan or as downpayment or full payment on completed transactions or as stipulated in the loan agreement.

Special Allotment Release Order (SARO) - is a specific authority issued to one or more identified agencies to incur obligations not exceeding a given amount during a specified period for the purpose indicated. It shall cover expenditures the release of which is subject to compliance with specific laws or regulations, or is subject to separate approval or clearance by competent authority.

Withdrawal Application - is a written application in such form and containing such supporting documents and other evidence as maybe reasonably requested by the FLDI for withdrawal from the loan account.

Working Fund - is an advance fund from the loan / grant proceeds established for projects to accelerate disbursements of funds and ensure efficient project implementation. The Fund is used for the payment of eligible expenditures which the FLDI has agreed to finance in accordance with the loan/grant agreement. This is primarily availed of to provide seed money to relieve the Government of the Philippines (GOP) from cash flow problems and to expedite the payments of eligible expenditures, thereby facilitating project implementation.