http://mb.com.ph/articles/320318/manila-gets-434m-us-grant
Manila gets $434-M US grant
May 28, 2011, 8:40pm
MANILA, Philippines —Malacañang Saturday lauded the start of the implementation of the US$434-million compact grant of the Millennium Challenge Corp. (MCC) that aims to reduce poverty in the country, assuring that the antipoverty aid will directly benefit the public.
The entry into force (EIF) of the compact grant was announced by the Philippine government and Millennium Challenge Account-Philippines last May 25.
“After rapid progress with project preparation and mobilization, EIF was achieved on schedule and marks the start of the 5-year clock for implementation of the compact,” the US embassy said.
Deputy Presidential Spokesperson Abigail Valte said the Philippine government has been in constant preparation for the implementation of the grant, which will fund three projects – the Secondary National Road Development (SNRD) project, particularly in Samar; Kapit-Bisig Laban sa Kahirapan (“Linking Arms to Poverty”)-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS) under the Department of Social Welfare and Development (DSWD); and the Revenue Administration Reform Project (RARP) under the Bureau of Internal Revenue (BIR).
Valte said the US government is assured of the projects’ transparency, noting that the Philippine government will be submitting a progress report to ensure that the funding is spent for the entirety of the project.
The compact grant was signed on September 23, 2010 in New York between Philippine Finance Secretary Cesar Purisima and MCC Chief Executive Officer Daniel Yohannes and witnessed by President Benigno S. Aquino III and US Secretary of State Hillary Clinton, who heads the MCC Board of Directors.
The MCC is a US-based independent foreign aid agency that aims to fight global poverty. It has approved over $7 billion in poverty reduction compacts with 20 partner countries.
The Philippines is second to Indonesia in terms of development assistance globally.
For a country to be selected as eligible for an MCC assistance program, it must demonstrate a commitment to policies that promote political and economic freedom, investments in education and health, the sustainable use of natural resources, control of corruption, and respect for civil liberties and the rule of law, as measured by 17 different policy indicators.
The Philippines was named eligible for MCC Compact Program assistance on March 11, 2008. It had also been named eligible for MCC Threshold Program assistance on November 8, 2006.
Countries selected as eligible for a large-scale grant, or compact, have the opportunity to submit a proposal for a five-year program to reduce poverty through sustainable economic growth.