Despite corruption issue, RP set to get $5.5M grant

Amid the lingering problem of corruption in government, the Philippines is poised to secure an additional $5.5 million grant from a US government aid agency to allow the government to conduct studies on investments and cost estimates of projects that will best benefit the marginalized, the Department of Foreign Affairs (DFA) has said.

Citing a report from the Philippine Embassy in Washington, the DFA said Ambassador Willy Gaa and Millennium Challenge Corp. (MCC) Acting Vice President for Compact Development Darius Teter signed a key memorandum of understanding (MoU) last Oct. 16 for the possible provision of additional funding to the Philippines.

It said the MoU involves a $5.5-million contribution to be provided by the MCC for “beneficiary analyses, engineering designs and environmental and social impact assessments.”

Information derived from these will be submitted accordingly to the Board of Directors of MCC for “Compact funding” consideration, the DFA said.

The funding would help facilitate Philippine efforts to finalize its proposal for an an MCC poverty-reduction grant, known as a “Compact,” it added.

The Philippines is currently an MCC “threshold country,” having been given in 2007 a grant of $21 million to fund anti-corruption projects after the government demonstrated its commitment to enact reforms necessary to improve policy and performance.

The funding will end on Nov. 21 amid the lowering of the Philippines’ corruption “score” as pegged by the MCC.

In March last year, the MCC announced that the Philippines is already qualified to apply for a Compact. As a Compact-eligible country, the Philippines can apply for a large-scale multi-million dollar grant for poverty reduction.

The MCC, however, rejected the country’s Compact application last December due to the prevalence of corruption in its government.

Manila was given a failing mark by the MCC on the areas of education, public health and on “control of corruption.”

The six Compact proposals submitted by the government to the MCC “transaction team” for preliminary assessment are on fiscal revenue enhancement and social safety net programs, community/road infrastructure, coastal surveillance for fishing and agricultural access to water.

But Gaa said due to the progress so far achieved by the Philippines in addressing several problem areas, further steps are currently undertaken toward Compact funding eligibility.

He emphasized the Philippine government’s commitment to promote economic growth through a Compact proposal aimed at benefiting the poorest of the poor in the country while addressing issues involving tax evasion and corruption.

During the Compact signing, the embassy quoted Teter as saying that “in every way, the Philippines has been a model (MCC) partner.”

The MCC is an independent US aid agency aimed at reducing global poverty through the establishment of partnerships with developing countries worldwide that are committed to good governance, economic freedom and investment in citizenry by offering monetary grants to fund projects focused on achieving sustainable economic growth.  –Michaela P. del Callar, Daily Tribune