Gov’t lining up projects for possible MCC grant

The government is identifying the list of infrastructure projects that may possibly be financed by the Millennium Challenge Corp. (MCC) should it decide to approve fresh aid to the country, according to the Department of Finance (DOF).

In an interview, Finance Secretary Carlos Dominguez said the government is conducting the necessary preparations for the possible grant of a new millennium challenge compact from the MCC.

“They (our team) are preparing a pipeline of projects, so we hired a consultant to put a package,” Dominguez said in an interview.

Dominguez said early preparations would ensure the projects would be swiftly executed if the Philippines gets its grant approval.

“If they (MCC) approve it (the grant), then we can hit the ground running. If they cannot approve it, then we have something in the pipeline that we can finance elsewhere,” he said.

The MCC earlier announced that the Philippines was among the candidate-countries being considered for a new millennium challenge compact for 2018.

According to Dominguez, the government is prioritizing infrastructure projects in remote areas of the country for the list of proposed projects, much like a road project in Samar previously financed by the MCC from 2010 to 2016.

“The major projects we want are infrastructure, just like the $200 million MCC project in Samar,” Dominguez said.

Dominguez said some projects being considered by the DOF are developments in the east coast of Luzon, such as the construction of a new port that would enable research vessels easily said toward the Philippine Rise.

“We already have a new territory which is the Philippines Rise and we do not have ports where we can launch our research vessels. So we might as well start developing that in places like Quezon,” he said.

Earlier, Dominguez had welcomed the decision of MCC to uphold the eligibility of the Philippines for another MCC grant. However, he said the government would still need to assess if the projects to be funded are within the administration’s priorities, and if the terms and conditions of the aid would not affect its sovereignty.

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.

The Philippines first received a $434 million grant from the body in 2010 as support for the country’s tax reform, social development and infrastructure programs.