THE Philippines has secured a $60-million (P3.68 billion) grant from the United States to advance energy-sector reforms, improve the affordability and reliability of electricity, and attract more investment.
On Thursday, Finance Secretary Frederick Go and US Ambassador to the Philippines Lee Lipton signed the Millennium Challenge Corporation (MCC) Threshold Program Grant Agreement at the Luzon Economic Corridor Investment Forum held at Grand Hyatt in Taguig.
“This support will help us address key policy and institutional gaps and strengthen the foundations of our energy sector,” Go said.
The MCC is an independent US government development agency that provides time-bound grants to promote economic growth, reduce poverty and strengthen institutions.
The grant will finance a program lasting four years and nine months. It aims to strengthen the Philippines’ eligibility for a future MCC Compact, a larger grant program supporting major economic development projects and policy reforms.
The program includes the Energy Development Governance Efficiency (EDGE) Project, which will be implemented by the Department of Energy, Energy Regulatory Commission, National Electrification Administration, and National Power Corp.
EDGE has two components: First, the Permitting and Approvals Reform for Efficiency will streamline government approval processes for energy projects, reduce transaction costs, and help ensure timely implementation.
Second, the Smart Utilities for Regional Growth in Energy will help electric cooperatives improve the reliability and sustainability of their services through grid digitalization and financing for strategic infrastructure.
These two components seek to accelerate energy investments, reduce power interruptions and lower electricity costs.
The threshold program also includes the American Investment Mechanism Project, which will help mobilize private-sector investment in coordination with the US International Development Finance Corp. It will fund feasibility studies, project designs and market assessments to make high-impact projects commercially viable.