Philippines secures $60 million grant from MCC

MANILA, Philippines — The US Millennium Challenge Corp. (MCC) has approved a $60 million grant for the Philippines to advance energy security and governance reforms, according to the Department of Finance (DOF).

In a statement, Finance Secretary Frederick Go described the approval of the MCC Threshold Program as a “strong vote of confidence” in the administration’s reform agenda.

The Philippines qualified for the program after meeting MCC’s policy performance standards across the areas of economic freedom, ruling justly and investing in people.

It joins a select group of nations chosen for the program, which supports nations in addressing key policy and institutional constraints to economic growth and preparing them for future MCC compact assistance.

In addition, the DOF said the threshold program would support the Energy Development Governance Efficiency Project, which seeks to improve governance and operational efficiency across the country’s electricity sector.

One of its two components is to support policy and regulatory reforms to streamline energy planning, programming and permitting, fast-tracking the development of energy projects.

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

The DOF said this is expected to ease 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,” Go said.

“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,” he said.

The MCC, an independent US foreign assistance agency, provides time-bound grants to support reforms that help spur economic growth, reduce poverty and strengthen public institutions.