Australia offers grant to help RP implement reforms

The Australian government has offered a A$30-million five-year grant to the Philippines designed "to strengthen government implementing agencies to achieve the objectives of their reform agenda."

The grant facility will be coursed through The Partnership for Economic Governance Reforms, pursuant to the General Agreement on Development Cooperation (GADC) between Philippines and Australia forged in October 1994. It also governs activities under the Philippines-Australia Development Cooperation Program.

The facility will be managed through a partnering approach by the National Economic and Development Authority (NEDA), the Department of Budget and Management (DBM), AusAID, and the partner contractor, SAGRIC, which will all identify the needed economic governance reform initiatives and direct the focus and approach.

The National Government, for its part, will make counterpart contributions to the facility, including: salary costs for all NG agencies involved for the duration of the facility; provision of venues, office space, local resource persons and logistical support of the agencies; and NG participation in the Facility Board and Management Group meetings.

However, the estimated contribution of the Philippines will be determined on an annual basis dependent upon the nature and extent of its activities.

Socioeconomic Planning Secretary and NEDA director-general Romulo L. Neri said the facility would promote good economic governance in the Philippines to enhance economic growth, and ensure more effective delivery of services to the poor.

"The facility’s purpose of supporting our government in the implementation of our own reform programs in the areas of economic governance fits very well with the thrusts of the Medium Term Philippine Development Plan (MTPDP) for 2004-2010 and the current AusAID Philippine Country Program Strategy," Neri said.

The project recognizes that the main challenge for improving governance in the Philippines lies not in the development of better policies, but in their implementation.

The facility design framework meanwhile stated that many programs fail to be fully implemented due to lack of capacity within the implementing agencies, change management, and implementing skills and systems.