DOF says $434-M MCC grant 'enters into force'

The United States’ $434 million poverty reduction and anti-corruption grant to the Philippines, under the Millennium Challenge Corporation (MCC), has ‘entered into force’, according to the Department of Finance. Finance Secretary Cesar Purisima and Millennium Challenge Account – Philippines (MCA-P) managing director and CEO Ma. Victoria Añonuevo said the grant is ready for implementation after the Aquino administration met the project preparation and documentation conditions set forth in the ‘Compact Program’ between the two countries. Añonuevo said, “This is a milestone that signifies the determination by the two countries to rapidly initiate the implementation of poverty-reduction projects which eventually will help the Philippines and the Filipinos for many years ahead." US waited for Aquino election The US government waited until after the end of the previous administration to sign the MCC grant. US Secretary of State Hillary Clinton said during the signing ceremony that the grant “is only possible because for the past few years, we have seen evidence of a commitment to deliver for the people that we believe is represented in the promise of President Aquino's election." In 2009, the Philippines was unable to gain MCC grant as long-standing allegations of corruption prevailed during the administration of former President and now Pampanga Rep. Gloria Macapagal-Arroyo. President Benigno Aquino III said, “I am here to assure you that the Philippines is committed to good housekeeping practices in its domestic and international dealings with investors. We are committed not just to a fair, but a square, deal for all. We will not abandon the poor to the markets just as we will not distort markets by means of red tape or crony impositions. The MCC said they expect results. “The success of our partnership depends on good governance, local leadership, and tangible results. It requires the full implementation of the three projects that the Philippine people outlined in their MCC compact to promote economic growth," MCC CEO Daniel Yohannes said. Secretary Purisima revealed back then that the country might seek another MCC grant. "If we live up to our side of the deal, we can work on a third grant five years from now," he said. Roads, taxes, social services The MCC grant has three portions, the largest of which is the Secondary National Roads Development Project worth $214.44 million. The DOF and MCA-P will implement this component with Department of Public Works and Highways. “This will reduce transportation costs and improve access to markets and social services through the rehabilitation of an existing 220-kilometer road segment on Samar Island," the DOF said. Amounting to $120 million, another component, the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS) is the second largest chunk. The Department of Social Welfare and Development will partner with the DOF and MCA-P for its implementation. The third and smallest chunk of the MCC grant is the Revenue Administration Reform Project (RARP) amounting to $54.30 million. The DOF said the RARP is designed to reduce “tax evasion and corruption" through reforms at the Bureau of Internal Revenue (BIR) and modernization of its revenue collection system. — ELR/VS, GMA News