THE Philippines has secured a $60-million (P3.7 billion) grant from the US government’s Millennium Challenge Corp. (MCC) to help strengthen domestic energy security.
“The approval of the $60-million MCC Threshold Program affirms the Philippines’ commitment to good governance, transparency, and sound economic management,” Finance Secretary Frederick Go said in a statement on Thursday.
“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,” he added.
The Philippines was said to be part of a select group of countries chosen for the MCC Threshold Program, which helps partners address key policy and institutional constraints to economic growth.
It qualified for the program after meeting the MCC’s policy performance standards in the areas of economic freedom, ruling justly and investing in people.
Go said the Department of Finance would be working closely with the US agency and relevant government offices in developing and implementing the program.
The grant will support the Energy Development Governance Efficiency Project, which aims to improve governance and operational efficiency across the country’s electricity sector.
The project focuses on policy and regulatory reforms to streamline energy planning, programming and permitting processes, helping accelerate project development.
It will also finance targeted investments that reinforce reforms and improve the operational efficiency of the energy sector.
Go said the initiatives were expected to reduce delays in project implementation, improve the reliability of electricity supply and encourage greater private sector energy investments.
“This grant comes at an opportune time and provides a significant boost to our efforts to strengthen the country’s energy security,” he 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.”
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.
