Phl gets fresh 5-year funding eligibility from US

MANILA, Philippines - The Millennium Challenge Corp. (MCC) yesterday announced the eligibility of the Philippines for a new five-year grant from the United States to help reduce poverty in the country.

The Philippine embassy in Washington said the Philippines has found itself eligible for a new five-year grant or compact because of its strong efforts at policy reforms, including its successful campaign against corruption.

The MCC’s announcement of Manila’s eligibility for a second compact came four years after it awarded the Philippines $434 million to fund three major poverty reduction projects in the country.

MCC is an independent American aid agency created by the US Congress in 2004.

“The selection of the Philippines for a subsequent compact recognizes the significant progress achieved under the current compact and its strong efforts at policy reform, including successful efforts to root out corruption,” the MCC said in a statement.

Ambassador Jose Cuisia Jr. welcomed the positive development, saying it brings the Philippines one step closer to a second compact that will allow the country to avail itself of US funding to support its poverty alleviation programs.

“The selection of the Philippines for a second compact is a recognition of President Aquino’s commitment to good governance,” Cuisia said. “I believe a smooth transition to a second compact will help the Philippines in further institutionalizing good governance policies and reforms.”

Cuisia said he was informed by MCC vice president for operations Kaman Khan of the approval by the MCC board of the recommendation to start discussions for a second compact for the Philippines.

“The government has been a strong partner in compact implementation. Selecting the Philippines now allows for a seamless transition from one compact to the next,” the MCC said. The MCC added the Philippines is currently on track to complete its first compact by May 2016.

Approved in 2010, the first compact provided the Philippines with $214.4 million for the construction and repair of 220 kilometers of Samar roads to improve access to markets and services for farmers, fishermen and small businessmen; $120 million for a development project that empowers communities by encouraging their participation in poverty reducing activities; and $54.3 million for the computerization and streamlining of business processes of the Bureau of Internal Revenue to bolster tax collection and reduce corruption.