Aiming to strengthen the country’s domestic energy sector and enhance its power security, the Marcos Jr. administration has secured a ₱3.7 billion ($60-million) grant from the United States.
According to Department of Finance secretary Frederick Go, the grant will be funded by the US government’s Millennium Challenge Corporation (MCC), which is an independent foreign assistance agency that provides time-limited grants to support reforms that promote economic growth, reduce poverty and strengthen public institutions.
Secretary Go cited that “the approval of the US$60-million MCC Threshold Program affirms the Philippines’ commitment to good governance, transparency, and sound economic management.”
He asserted that the development “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.”
The finance chief disclosed that the Philippines was among a select group of countries chosen for the MCC Threshold Program that would help in addressing key policy and institutional constraints to economic growth.
“(We) qualified for the program after meeting the MCC’s policy performance standards in the areas of economic freedom, ruling justly and investing in people,” Go pointed out as he announced that the Philippine government will be working closely with the US agency and relevant government offices in developing and implementing the program.
“The grant will support the Energy Development Governance Efficiency Project, which aims to improve governance and operational efficiency across the country’s electricity sector,” he noted.
He explained that the project will focus on policy and regulatory reforms to streamline energy planning, programming and permitting processes and accelerating project development.
“It will also finance targeted investments that reinforce reforms and improve the operational efficiency of the energy sector,” he added.
Go said the initiatives were expected to reduce delays in project implementation, improve the reliability of electricity supply and encourage greater private sector energy investments.
“This grant comes at an opportune time and provides a significant boost to our efforts to strengthen the country’s energy security,” he enthused.
In ending, the secretary expressed optimism in the success of the endeavor as he thanked the MCC for its continued partnership with the Philippines in pursuant of reforms that would deliver more reliable services, attract greater private investment and sustain faster, more inclusive economic growth.