Finance Secretary Carlos Dominguez III on Friday welcomed the decision of the United States’ Millennium Challenge Corp. to extend fresh grant to the Philippines, but said the government would examine the conditions associated with the aid.
Dominguez said in a statement the decision of MCC was another confirmation of the Duterte administration’s strong commitment to the rule of law and inclusive growth.
Dominguez said, however, that the government would still go over the conditions set by MCC in approving the millennium challenge compact for the Philippines.
“We welcome the decision of the Millennium Challenge Corp. to approve a new compact for the Philippine government and thank them for this fresh grant offer . The government under the Duterte administration continues to vigorously implement initiatives that reinforce the Philippines’ commitment to good governance, peace and order and the rule of law,” Dominguez said.
He said MCC’s decision was a testament to the fact that despite the political noise emanating from certain quarters, the country’s development partners recognized the government’s commitment to reduce poverty and make growth inclusive while maintaining peace and order and upholding the rule of law.
“We will look into the conditions of the MCC grant and determine if they are aligned with our priorities,” Dominguez said.
The MCC said on its website that the eligibility of recipient-countries for year 2018 would be based on, among others, their “demonstrated commitment to just and democratic governance, economic freedom and investments in [its] people,” and “the opportunity to reduce poverty and generate economic growth.”
MCC said in a report the Philippines was among the 66 candidate countries for fiscal year 2018 based on their per capita income levels and their eligibility to receive assistance under US law.
The Philippines was awarded a five-year, $434-million package in 2010. The so-called “compact” ended in May 2016 and the MCC board said the country was eligible for a new package.
MCC in December last year deferred a vote on the reselection of the Philippines for compact development, subject to a further review of concerns around rule of law and civil liberties.
Funds provided in the first compact were used for tax collection reforms at the Bureau of Internal Revenue, 4,000 community development programs under the Kapit-Bisig Laban sa Kahirapan Comprehensive and Integrated Delivery of Services and the construction of 137 miles of roads and 61 bridges in Samar.
