PH secures $60M grant under Millennium Challenge Corp. Threshold Program

The Philippine government has secured $60 million or roughly P3.7 billion from American foreign aid agency Millennium Challenge Corporation, the Department of Finance (DOF) said Thursday.

In a statement, the DOF said the Philippines is among a select group of countries chosen for the MCC Threshold Program, “which supports nations in addressing key policy and institutional constraints to economic growth and preparing them for future MCC compact assistance.”

Finance Secretary Frederick Go welcomed the Philippines’ inclusion in the MCC Threshold Program as the grant will strengthen energy security and create a more conducive environment for investments in the Philippines.

"The approval of the US$60-million MCC Threshold Program affirms the Philippines' commitment to good governance, transparency, and sound economic management. It reflects the confidence of our international partners in the reforms we are pursuing to strengthen institutions, improve the ease of doing business, and create more opportunities for Filipinos," said Go.

The DOF said the MCC Threshold Program will support the Energy Development Governance Efficiency Project, which seeks to improve governance and operational efficiency across the country's electricity sector.

As the Philippine government's lead agency for engagement with the MCC, the Finance Department said it will work closely with the MCC and relevant government agencies to develop and implement the program.

The project has two components.

The first will support policy and regulatory reforms to streamline energy planning, programming, and permitting, accelerating the development of energy projects.

The second will finance targeted investments that reinforce these reforms and improve the efficiency of energy sector operations.

The DOF said the initiatives are expected to reduce delays in project implementation, improve the reliability of electricity supply, and encourage greater private investment in the energy sector.

“This grant comes at an opportune time and provides a significant boost to our efforts to strengthen the country’s energy security. We thank the MCC for its continued partnership with the Philippines as we pursue reforms that deliver more reliable services, attract greater private investment, and sustain faster, more inclusive economic growth,” said Go.

The DOF said that the Philippines qualified for the Threshold Program after meeting the MCC's policy performance standards across the areas of economic freedom, ruling justly, and investing in people.

The MCC is an independent US foreign assistance agency that provides time-limited grants to support reforms that promote economic growth, reduce poverty, and strengthen public institutions. —VBL, GMA News