MANILA, Philippines — The Philippine government has secured a $213 million (approximately P10.8 billion) grant from the United States to finance its poverty reduction and good governance programs, the Department of Finance (DOF) said yesterday.
According to the DOF, the grant for the Economic Growth and Democratic Governance with Equity (EGDGE) program, which will be implemented until September 2025, was signed by Finance Secretary Carlos Dominguez and US Agency for International Development (USAID) mission director to the Philippines Lawrence Hardy II. The DOF said the program aims to advance poverty reduction, justice, and peace efforts in the country, while also seeking to improve macroeconomic fundamentals and open governance in order to promote inclusive growth in the Philippines.
“We thank USAID for this latest support by the United States government by way of a $213 million grant for the Duterte administration’s paramount goal of accelerating poverty reduction and attaining financial inclusion for all Filipinos,” Dominguez said. “This American aid in support of the overriding concern of the Duterte government underscores the strong and enduring bilateral ties between the US government and the government of the Republic of the Philippines that transcend the political chatter,” he said.
The grant from USAID covers technical assistance on public financial management, domestic resource mobilization, public-private partnerships and inter-agency coordination, according to the DOF. It also includes assistance to develop and strengthen the capital market, such as municipal bond financing and the promotion of innovative financial products.
The grant will fund programs to improve regulatory governance by strengthening the capacity of public officials to develop regulations and expanding opportunities for civil society advocacy for fair and open regulation. The DOF said the EGDGE program was designed to provide an enabling environment for private infrastructure investments, as well as assistance in technical advising, training, lending guarantees, and private sector partnerships to promote startups and small and medium-sized enterprise (SME) development.
It is also expected to promote sound urban management practices and investment development strategies for the creation of new economic hubs in areas outside Metro Manila, the DOF added.
To further strengthen good governance, the agency said the program would provide assistance in the adoption of global best practices in the extractive industry, and promote swift and fair administration of justice through arbitration and mediation.
“The program will also provide assistance in strengthening the country’s counter-trafficking institutions, building the scale and sustainability of interventions, and targeting key hotspots and sectors,” the DOF said.