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Aug 13, 2010
MANILA — The Board of Directors of the Washington-based U.S. Government’s Millennium Challenge Corporation (MCC) has approved a US$ 434-million (about P20-billion) compact with the Philippine Government, aimed at reducing poverty through economic growth.
The US$ 434-million compact would fund three major projects in the Bureau of Internal Revenue, in the Kalahi-CIDSS communitybased rural development program, and the repair of Samar Road in the Visayan region. In Manila, U.S. Ambassador Harry K. Thomas Jr. said the MCC announcement of the close to P20-billion compact “marks a vote of confidence in the Aquino administration and its commitment to confront corruption.” The MCC Board of Directors is chaired by Secretary of State Hillary Clinton, who visited the Philippines last year. MCC is a U.S. Government agency designed to work with developing countries on aid disbursements.
The signing of the final agreements is expected to occur in the coming weeks, possibly during the time of President Benigno Simeon C. Aquino III’s planned visit to the U.S. for the United Nations General Assembly in September. “Congratulations to the people and Government of the Philippines for tackling difficult challenges to create tangible opportunities for growth and prosperity,” said MCC Chief Executive Officer Daniel Yohannes.
“The Filipinos have articulated a clear vision to improve the quality of their lives through a technically, environmentally, and socially sound plan. I am confident that the country’s ongoing commitment to positive reforms, accountability and transparency, and the timely implementation of the compact will deliver tangible results,” he added. Thomas further said, “The MCC grant will support President Aquino’s efforts to reduce poverty, stimulate economic growth, combat corruption, and ensure a better future for all Filipinos. I am delighted that we now have this new opportunity to build on our partnership with the Philippines.”
Non-governmental organizations, private sector firms, and the Philippine Government and people consulted extensively to design a homegrown program to address key constraints to sustainable development to qualify for the compact. The standards and criteria for meeting the terms of the compact were lined up and pursued in earnest by the administration of then President Gloria Macapagal-Arroyo.
About US$ 54.3 million in investments to computerize and streamline business processes in the Bureau of Internal Revenue is allotted. This project will bolster the effectiveness of revenue collection and reduce opportunities for corruption, said the MCC announcement.For the US$ 120 million to expand the innovative Kalahi-CIDSS program, under the leadership of the Department of social Welfare and Development, it is expected to strengthen local accountability and empower poor communities to design and drive the projects they need to increase their incomes and improve their lives, MCC said.