RP moving closer to getting $5.5 million from US Millennium Challenge Corp

WASHINGTON – The Millennium Challenge Corp. has agreed to provide the Philippines, which it called a model partner, $5.5 million to help facilitate its proposal for US funding of up to $500 million for projects to promote economic growth and improve revenue collection.

Under a memorandum of understanding signed by both sides, the money will be used to complete benefit analyses, engineering designs and environmental and social impact studies on investments and cost estimates for proposed projects to benefit the needy.

The Philippines is finalizing three projects for MCC compact financing – a Secondary National Development Roads (SNDR) project, Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services, and an Integrated Revenue Information System.

The $5.5-million funding is a major step that brings the Philippines closer to concluding an MCC compact agreement. It does not constitute a commitment to sign a compact but is an important milestone in MCC’s compact development process.

The memorandum was signed last Friday by Philippine Ambassador to the United States Willy Gaa and MCC acting vice president for compact development Darius Teter who called the Philippines “a model partner in every way.”

Gaa emphasized his government’s commitment to promote economic growth through a compact proposal aimed at benefiting the poorest of the poor in the Philippines while addressing issues involving tax evasion and corruption.

The MCC has established 17 benchmarks including control of corruption that country applicants must pass to be eligible for aid under the US government’s innovative foreign assistance program.

The Philippine Economic Management Team reaffirmed the country’s commitment during a meeting with top MCC officials in Washington last April 25 where the Philippines’ MCA compact status bid for 2010 was tackled.

The economic team, composed of Finance Secretary Margarito Teves, Budget Secretary Rolando Andaya Jr., and former socio-economic planning secretary Ralph Recto, met with top MCC officials led by acting CEO Rodney Bent to discuss the Philippines’ bid for compact status in 2010. – With Pia Lee-Brago