The Economy and Development Council (ED Council), chaired by President Ferdinand Marcos Jr., has approved $400 million in cost increases and implementation extensions for four US government-assisted development objective agreements.
The adjustments are intended to sustain the programs which focus on health, education, economic growth and climate resilience, as project management transitions from the United States Agency for International Development (USAID) to the US State Department.
“These timely adjustments are crucial to sustaining the gains we have achieved through these agreements,” said ED Council vice-chair and Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan.
“They will ensure that programs continue to deliver meaningful results for the Filipino people, particularly in health, education, economic growth, governance, and climate resilience,” he said.
The approved agreements include: Improved Health for Underserved Filipinos (Department of Health) whose cost increased to $524 million from $224 million to sustain improvements in health outcomes.
The cost of the Enhanced Ecosystem and Community Resilience (Department of Environment and Natural Resources, Department of Energy, and Department of Agriculture – Bureau of Fisheries and Aquatic Resources) also increased to $250 million from $150 million to enhance natural systems and address climate change.
Meanwhile, the Economic Growth and Democratic Governance with Equity (Department of Finance) implementation period was extended up to Sept. 30, 2027, to further strengthen macroeconomic fundamentals.
The implementation of Improved Basic Education Outcomes (Department of Education) was extended up to Sept. 30, 2027, to scale up capacity for measurable improvements in learning outcomes.
The ED Council also approved critical adjustments to the Metro Rail Transit Line 3 Rehabilitation Project, including changes in scope, cost, financing and implementation timeline, to ensure its continued safe, efficient and sustainable operations.
The Department of Transportation (DOTr) sought the changes to cover technical requirements such as system upgrades, equipment rehabilitation, facility improvements, full replacement of main line rails, general overhaul of 72 CKD-Tatra Light Rail Vehicles and integration with other MRT-3 projects.
“The MRT-3 is a vital artery in Metro Manila’s transport network,” Balisacan said.
“These adjustments are necessary to meet evolving technical demands and ensure that commuters benefit from a safer, more efficient, and more reliable transit system,” he said.
President Marcos also directed the DOTr to implement appropriate safeguards and ensure the sustained short- and long-term operations and maintenance of MRT-3.
The ED Council also approved updated guidelines for the review and approval of major government programs and projects.
Key changes include raising the cost threshold for locally funded programs and projects to P5 billion and expanding the coverage of the Investment Coordination Committee (ICC) to include Public-Private Partnership (PPP) projects. The new guidelines also institutionalize the ICC’s mandatory review of all foreign loan-assisted projects.
“As we work to ensure that every peso invested by the government delivers maximum value for Filipinos, streamlining the ICC process and clarifying its scope will make project evaluation more rigorous while minimizing delays,” Balisacan said.
