WASHINGTON – The US Millennium Challenge Corp. has said it wants an assurance the incoming administration of president-elect Benigno Aquino III will abide by the MCC’s ideals and principles, including fighting corruption, before it forks over a development grant of about $500 million to the Philippines.
The grant will be spread over five years to finance major projects in the country to reduce poverty through economic growth.
The MCC Board chaired by Secretary of State Hillary Rodham Clinton at a meeting here on Wednesday said in a statement it expected to consider a compact or grant agreement with the Philippines this year. “The Board reiterated its desire for a commitment by the new administration to the ideals and principles of MCC, including fighting corruption, and to the compact’s objectives and implementation,” the statement said.
It said the board received an update on discussions with Aquino’s people on the proposed compact program.
Informed sources said Troy Wray, country director-Philippines, was in Manila last week for the talks.
Outgoing President Arroyo had hoped to sign the compact agreement with MCC before leaving office and her senior aides were optimistic it would be done in April during her visit to Washington for a nuclear security summit.
But the MCC dashed her hopes, deferring final consideration of the agreement until a new government was installed in Manila.
“MCC is committed to leveraging its assistance dollars to reduce poverty through sustained economic growth. We will continue to effectively use our resources in this time of financial constraint to fulfill MCC’s mission and produce tangible results,” said chief executive officer Daniel Yohannes in the statement.
The Philippine compact proposal focuses on 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.