MANILA, Philippines - The Millennium Challenge Corp. (MCC) is still planning to give the Philippines fresh funding for its development projects, the Department of Finance (DOF) said yesterday.
In an interview, Finance Secretary Carlos Dominguez said MCC has approached the government for a second compact or grant, but has yet to make a final decision on the matter.
“I’ve talked to the Millennium Challenge people maybe three times already, and they said they want to give us a second compact,” Dominguez told reporters.
“I believe the new (Trump) administration has not really decided what to do with the Millennium Challenge,” he said.
The MCC, an independent US aid agency, assesses potential grantees using indicators, such as economic freedom, good governance, and investments in citizens.
A compact with the MCC involves a large five-year grant for countries that pass these eligibility criteria.
In 2010, the Philippines received $434 million in grant from the MCC to support the country’s tax reform, social development and infrastructure programs.
The MCC in December 2015 had re-selected the Philippines to receive another five-year grant in recognition of the country’s progress on good governance.
However, the MCC Board decided to defer its formal decision on the re-selection of the Philippines in its December 2016 meeting, citing concerns on rule of law and civil liberties.
Asked if the government would accept the second MCC grant in case an offer was made, Dominguez said the DOF would first assess the contents and conditions provided under the aid.
“We will consider their offer. Is it in our priorities? Are the terms reasonable? Are our sovereignty not affected?
We’ve engaged with them several times,” Dominguez said.