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25/03/2010: MCC Lauds RP for Developing an Innovative Compact Proposal

25 March 2010 - The Board of Directors of the Millennium Challenge Corporation (MCC) lauded the Philippine Government for developing an innovative Compact that is pro-poor and pro-policy reform and acknowledged the government’s strong commitment to its partnership with MCC.

“Work will continue on the Compact to ensure that the gains achieved by the Arroyo Administration will be sustained until the next administration.  We thank the MCC for its partnership and cooperation” Ambassador Wily Gaa  said.

Under the leadership of President Gloria Macapagal Arroyo, the Philippines had successfully completed the Threshold Program in May 2009, met all program targets, was selected Compact eligible in FY2008, and reselected twice for FY2009 and FY2010.  Last February, the Philippines successfully negotiated with MCC a compact in the amount of US$434 million in grants for poverty alleviation and good governance projects.

Ambassador Gaa said these are important milestones in a long process, which will be part of the legacy of President Arroyo’s administration.

“We are confident that the incoming administration will be able to build on these achievements, maintain the Philippines’ good performance, and show equal commitment and dedication to the MCC process,” he added.

Since October 2009, MCC has invested over US$9 million in total grants as pre-Compact assistance for the Philippines, i.e., technical assessment of Compact projects and preparatory implementation phase.

Moreover, MCC’s Senior Management reported the Philippines’ “consistent good performance in the country scorecards,” adding that, “in every way, the Philippines has been a model MCC partner.”

MCC also recently disclosed that the Philippines has consistently demonstrated good performance under the Ruling Justly category and passed 35/36 of the six indicators in six years.

With its strong resolve to pursue governance reforms and its continuing commitment to good policy performance, the Philippine Government has recently submitted its Policy Improvement Process (PIP) Plan of Action, outlining a roadmap to effectively address performance indicators such as Control of Corruption (COC).

Governance reforms projects such as the Balanced Scorecard/Performance Governance Systems (PGS) in six national government agencies (DepED, DOH, DPWH, DOTC, BIR, and PNP), promoting Local Government Units (LGUs) as “Sparkplugs” for Governance and Economic Development, and Enhancing the Budget Delivery Process will lay a strong foundation for more efficient and effective performance of key agencies.

The PIPs of the six national government agencies will be available today at the www.governance.org.ph portal.

The Philippine Compact proposal focuses on Secondary National Road Development Project, Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDDS), and the Revenue Administration Reform Project (RARP).

Ambassador Gaa added that approval of the Philippine Compact soon will add a new and exciting dimension to the multifaceted Philippines-U.S. partnership – a legacy which deeply anchored our countries’ common and shared values – all of which lie at the heart of the Millennium Challenge Account program.  END