05/08/2010: Board Approval of Philippine Compact Proposal Reaffirms RP’s High Capacity as MCC Partner
04 August 2010 – Recognizing the Philippine Government’s commitment to good policy performance, the Millennium Challenge Corporation’s (MCC) Board of Directors, chaired by U.S. Secretary of State Hillary Clinton, unanimously approved yesterday the Philippines’ five-year Millennium Challenge Account (MCA) Compact proposal for FY 2010-2014.
“The MCC Board’s final approval of the Philippine Compact reaffirms the Philippines’ high capacity as MCC partner,” Philippine Ambassador to the United States Willy C. Gaa said upon hearing the good news.
The Compact proposal involves the allocation of $434 million to fund three projects - the Secondary National Road Development (SNRD) project, Kapit-Bisig Laban sa Kahirapan (“Linking Arms to Poverty”)-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS), and the Revenue Administration Reform Project (RARP).
Pre-implementation activities are underway to put in place strong financial and procurement controls and monitoring systems. The Philippine Government has also submitted to MCC a Policy Improvement Plan (PIP) Plan of Action which outlines a road map to effectively address performance indicators such as Control of Corruption (COC). The various integrity action plans spelled out in the PIP will be integrated in the national governance framework.
At a meeting on 24 March 2010, the MCC Board of Directors lauded the Philippine Government for developing an innovative Compact proposal and for its highest level of political commitment to the MCC process.
An independent U.S. foreign aid agency that is helping lead the fight against global poverty, MCC has granted over $7.0 billion to twenty Compact partner countries for programs focused on promoting food security, strengthening human development, building infrastructure, securing land rights, and championing gender equality.
“We reiterate our appreciation to the MCC and its Board of Directors, chaired by Secretary Hillary Clinton, for their invaluable support to developing countries like the Philippines to strengthen democracy, reinforce the rule of law, and liberalize their economies,” Ambassador Gaa concluded. END