The Philippines has secured a $60 million Threshold Program grant from the US Millennium Challenge Corporation (MCC) to support of the energy sector reforms, strengthen governance, and improve the country’s attractiveness to investors, the Department of Finance (DoF) said.

The MCC is an independent US foreign assistance agency that provides time-bound grants to countries undertaking reforms aimed at promoting economic growth, reducing poverty and strengthening public institutions.

Qualified for the Threshold Program

According to the DOF, the country qualified for the Threshold Program after meeting the MCC’s policy performance standards in the areas of economic freedom, ruling justly and investing in people.

Finance Secretary Frederick Go welcomed the approval by the MCC Board of Directors, describing it as a strong endorsement of the Marcos administration’s reform agenda and commitment to good governance.

International partners’ confidence

“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.

The Philippines is among a select group of countries chosen for the MCC Threshold Program, which helps nations address key policy and institutional barriers to economic growth while preparing them for potential future MCC compact assistance.

As the government’s lead agency for engagement with the MCC, the DoF will coordinate with the corporation and relevant government agencies in developing and implementing the program.

Energy development governance efficiency project

At the center of the initiative is the Energy Development Governance Efficiency Project, which aims to improve governance and operational efficiency across the Philippine electricity sector.

The project consists of two major components. The first will support policy and regulatory reforms designed to streamline energy planning, programming and permitting processes, helping accelerate the development of energy projects nationwide.

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

The government expects the program to help reduce delays in project implementation, improve the reliability of electricity supply and encourage greater private sector participation in the energy industry.