MANILA, Philippines - The Philippines will soon sign with the United States Millennium Challenge Corp. (MCC) an agreement for a grant of $433 million which would be used to finance crucial revenue and infrastructure projects, Finance Secretary Cesar Purisima said yesterday.
“We’re about to sign one right now from the MCC of the US. We’re going to get a $433 million grant,” he said.
According to the MCC, the grant would provide funding for three major projects.
“First, the compact includes $54.3 million in investments to computerize and streamline business processes in the Bureau of Internal Revenue. This project will bolster the effectiveness of revenue collection and reduce opportunities for corruption,” the MCC said.
Aside from this, $120 million would be used to expand the government’s Kalahi-CIDSS project, a community-based, rural development program.
KALAHI-CIDDS which stands for Kapit-Bisig Laban sa Kahirapan Comprehensive Integrated Delivery of Basic Services is a government poverty reduction scheme implemented by the Department of Social Welfare and Development nationwide.
“This innovative approach to development strengthens local accountability and empowers poor communities to design and drive the projects they need to increase their incomes and improve their lives,” the MCC said.
The third project, the MCC said would be used to finance the construction and repair of 220 kilometers of Samar Road worth $214.4 million.
“This road, which passes through 15 municipalities, will improve access to markets and services for farmers, fishers, and small businesses in some of the poorest provinces in the Philippines,” it said.
The MCC is a US government corporation designed to work with developing countries and is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote poverty reduction through economic growth.