A US aid agency approved a $434-million (P20 billion) fund to help the Philippines reduce poverty and fight corruption, a gesture that signals US confidence in the new administration of President Benigno Aquino III, the agency Millennium Challenge Corp. (MMC) said Friday. “Congratulations to the people and government of the Philippines for tackling difficult challenges to create tangible opportunities for growth and prosperity,” MCC Chief Executive Officer Daniel Yohannes said in a statement issued from Washington. “The Filipinos have articulated a clear vision to improve the quality of their lives through a technically, environmentally, and socially sound plan. I am confident that the country's ongoing commitment to positive reforms, accountability and transparency, and the timely implementation of the compact will deliver tangible results,” Yohannes said. US Ambassador to the Philippines Harry Thomas lauded the decision of the MCC Board of Directors, chaired by Secretary of State Hillary Clinton, saying it “marks a vote of confidence in the Aquino administration and its commitment to confront corruption.” “The MCC grant will support President Aquino's efforts to reduce poverty, stimulate economic growth, combat corruption, and ensure a better future for all Filipinos. I am delighted that we now have this new opportunity to build on our partnership with the Philippines. We look forward to signing the final agreements in the coming weeks, and getting to work as soon as possible,” Thomas said in a statement. The MCC will provide funding for three major projects. The first beneficiary will be the Bureau of Internal Revenue which will receive $54.3 million in investments to computerize and streamline its business processes. This project seeks to make revenue collection more effective and reduce opportunities for corruption. The second beneficiary is a community-based, rural development program for poor communities called Kalahi-CIDSS which will receive $120 million to fund small-scale infrastructure and related services with the goal of stimulating economic growth and reducing poverty. The third recipient is the province of Samar which will receive $214.4 million for the construction and repair of a 220-km road that passes through 15 municipalities in the province. The Philippines failed to secure the MCC grant last year due to the festering allegations of corruption under the administration of former President Gloria Macapagal Arroyo. The Philippines would have received a $500-million poverty-reduction funding from the MCC had it passed the MCC's anti-corruption test last year. No country can receive funding unless it passes at least half of the 17 indicators and the Control of Corruption indicator. Following the end of Arroyo's term and the election of Aquino, the Philippines was re-selected to apply anew for additional funding under the MCC's compact program for its development projects. The agreement for the MCC compact funding is expected to be signed next month at the sidelines of the United Nations General Assembly in New York. Finance Secretary Cesar Purisima is expected to sign for the Philippines with Aquino as witness. The Philippines, which qualified in 2007 under the MCC's threshold program, initially received $21 million for the government's anti-corruption projects. The MCC is a US government corporation working with developing countries. Created by the US Congress in 2004, the MCC forms partnerships with some of the world's poorest countries that are committed to good governance, economic freedom, and investments in their citizens.
