PH in position to receive another MCC Compact
The Philippines has been named eligible by the US government’s Millennium Challenge Corporation (MCC) to develop a proposal for a second MCC Compact which would look to continue the poverty reduction efforts of the first compact, which is currently in implementation and totals $434 million of grant funding from the United States.
MCC-Philippines Resident Country Director John Polk said the country’s second compact from the US government will be based on a proposal from the Philippines which will prioritize projects with goals to reduce poverty and promote sustainable economic growth.
Polk also said that, while eligibility is a very positive first step, there are several factors that will be considered before the second Compact can be finalized. Those factors will also help determine what the final size and scope of the second Compact will be. MCC encourages the Philippines to be innovative in its proposal and will work with the government throughout the development process.
Ma. Victoria Añonuevo, the managing director and chief executive at Millennium Challenge AccountPhilippines, said the Department of Finance (DOF) will issue “call to paper” to implementing agencies early next year.
Añonuevo said the DOF has formed a task force that will draft a new proposal to MCC.
The DOF earlier announced the country’s eligibility in developing its second compact grant from the US.
“The Philippines’ eligibility adds to the virtuous cycle we began with good governance in our bid to promote inclusive, sustainable growth,” Finance Secretary Cesar Purisima said.
“We welcome how our development partners and the international community are positively responding to our hard work by empowering even more reforms to happen. Every recognition we earn from our partners is ammunition in the good fight we started last 2010,” he added.
The Philippines is currently in the latter stage of implementation of the first compact with MCC. The implementation is scheduled to be completed in May 2016.
The funds aim to support projects involving the rehabilitation of the Samar Road of the Department of Public Works and Highways, KalahiCIDSS community- driven development projects, and revenue reform and anti-corruption efforts of the Bureau of Internal Revenue and the Revenue Integrity Protection Service.
Meanwhile, the Millennium Challenge Corp. ( MCC) clarified that the Philippine government may still qualify for a much higher grant from the US government. “Any mention of reduction of grant amount as part of the process of MCC, additionally, is unfounded, as there is no procedure in the MCC that makes reduction of grants after the first mandatory.” But John Polk, MCC-Philippines resident country director, said that there is a “trend” whereas the US government provides a reduced amount of grant to nations that already have an existing compact.