MANILA – The Philippine government will receive a smaller grant from US Millennium Challenge Corporation (MCC) compared to the first compact, which amounted to $434 million worth of grants.
MCC-Philippines resident country director John Polk said the country’s second compact from the US government will prioritize projects engaged in efforts to reduce poverty.
Polk said providing a reduced amount of grant to nations that already have an existing compact with the US government is part of the MCC process.
Ma. Victoria Añonuevo, the managing director and chief executive at Millennium Challenge Account-Philippines, said the Department of Finance (DOF) will issue “call to paper” to implementing agencies early next year.
Añonuevo said the DOF has formed a task force that will draft a new proposal to MCC.
The DOF earlier announced the country’s eligibility in developing its second compact grant from the US.
“The Philippines’ eligibility adds to the virtuous cycle we began with good governance in our bid to promote inclusive, sustainable growth,” Finance Secretary Cesar Purisima said.
“We welcome how our development partners and the international community are positively responding to our hard work by empowering even more reforms to happen. Every recognition we earn from our partners is ammunition in the good fight we started last 2010,” he added.
The Philippines is currently in the latter stage of implementation of the first compact with MCC. The implementation is scheduled to be completed in May 2016.
The funds aim to support projects involving the rehabilitation of the Samar Road of the Department of Public Works and Highways, Kalahi-CIDSS community-driven development projects, and revenue reform and anti-corruption efforts of the Bureau of Internal Revenue and the Revenue Integrity Protection Service.