MANILA – The Philippines has been awarded a USD60 million threshold program grant from the United States Millennium Challenge Corporation (MCC) to help strengthen energy security and advance governance reforms in the power sector.
The Department of Finance announced Thursday that the MCC Board approved the grant after the Philippines met the corporation’s policy performance requirements covering economic freedom, good governance, and investment in human development.
The threshold program is intended to help countries overcome key institutional and policy constraints that hinder economic growth while preparing them for possible future MCC compact assistance.
Funding will be directed to the Energy Development Governance Efficiency Project, which aims to improve the management and operational efficiency of the country’s electricity sector.
The project includes support for regulatory and policy reforms that will simplify energy planning, programming, and permitting procedures, allowing energy projects to move forward more quickly.
It will also provide financing for strategic investments that support the reforms and enhance the efficiency of energy sector operations.
The government expects the initiative to shorten project approval timelines, improve the stability of electricity supply, and encourage more private investment in energy development.
Finance Secretary
Frederick Go
said the grant demonstrates international confidence in the country’s reform agenda.
“The approval of the US$60-million MCC Threshold Program affirms the Philippines’ commitment to good governance, transparency, and sound economic management. It reflects the confidence of our international partners in the reforms we are pursuing to strengthen institutions, improve the ease of doing business, and create more opportunities for Filipinos,” Go said.
According to the DOF, the agency will coordinate with the MCC and other government offices to ensure the effective implementation of the program.
“This grant comes at an opportune time and provides a significant boost to our efforts to strengthen the country’s energy security. We thank the MCC for its continued partnership with the Philippines as we pursue reforms that deliver more reliable services, attract greater private investment, and sustain faster, more inclusive economic growth,” Go added.
The MCC is an independent U.S. foreign aid agency that provides time-bound grants to countries implementing reforms that support economic growth, reduce poverty, and strengthen public institutions.
elamigo/xf
