A $60-million grant from the U.S. Millennium Challenge Corp. (MCC) is set to help the country address bottlenecks in the energy sector by accelerating project approvals, improving power sector efficiency, and attracting more private investment.

The Department of Finance (DOF) said Thursday the MCC Board of Directors approved a Threshold Program for the Philippines, making the country one of only a select group of nations chosen to receive the assistance.

The funding will support the Energy Development Governance Efficiency Project, which seeks to improve governance and operational efficiency across the country’s electricity sector.

The project will focus on two key areas. The first will support policy and regulatory reforms to streamline energy planning, programming, and permitting, helping accelerate the development of energy projects. 

The second will finance targeted investments to reinforce these reforms and improve the efficiency of energy sector operations.

“The approval of the US$60-million MCC Threshold Program affirms the Philippines’ commitment to good governance, transparency, and sound economic management,” Finance Secretary Frederick D. Go said.

“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,” he added. 

The DOF said the initiatives are expected to reduce delays in project implementation, improve the reliability of electricity supply, and create a more attractive environment for private investment in the energy sector.

As the government’s lead agency for engagement with the MCC, the DOF will work with the corporation and relevant government agencies to develop and implement the program.

The Philippines qualified for the Threshold Program after meeting the MCC’s policy performance standards in economic freedom, ruling justly, and investing in people.

The MCC is an independent U.S. foreign assistance agency that provides time-limited grants to support reforms that promote economic growth, reduce poverty, and strengthen public institutions.