The Philippines has secured approval for a USD 60-million Threshold Program grant from the U.S. Millennium Challenge Corporation (MCC) to support energy security and governance reforms aimed at improving the country’s electricity sector.

The grant was approved by the MCC Board of Directors in Washington on June 24. 

Finance Secretary Frederick D. Go welcomed the approval, describing it as a vote of confidence in the Marcos administration’s reform agenda.

“The approval of the USD 60-million MCC Threshold Program affirms the Philippines’ commitment to good governance, transparency, and sound economic management. It reflects the confidence of our international partners in the reforms we are pursuing to strengthen institutions, improve the ease of doing business, and create more opportunities for Filipinos,” Go said.

The program will support the Energy Development Governance Efficiency Project, which seeks to improve governance and operational efficiency across the electricity sector.

The project’s first component will support policy and regulatory reforms to streamline energy planning, programming, and permitting, with the goal of accelerating the development of energy projects.

Its second component will finance targeted investments that reinforce these reforms and improve the efficiency of energy sector operations.

The Department of Finance (DOF) said the initiatives are expected to reduce delays in project implementation, improve the reliability of electricity supply, and encourage greater private investment in the energy sector.

“This grant comes at an opportune time and provides a significant boost to our efforts to strengthen the country’s energy security. We thank the MCC for its continued partnership with the Philippines as we pursue reforms that deliver more reliable services, attract greater private investment, and sustain faster, more inclusive economic growth,” Go said.

The DOF will serve as the Philippine government’s lead agency for engagement with the MCC and will work with relevant government agencies to develop and implement the program.

The MCC Threshold Program supports selected countries in addressing key policy and institutional constraints to economic growth and preparing them for possible future MCC compact assistance.

The Philippines qualified for the program after meeting MCC policy performance standards in economic freedom, ruling justly, and investing in people.

The MCC is an independent U.S. foreign assistance agency that provides time-limited grants to support reforms that promote economic growth, reduce poverty, and strengthen public institutions.

Can governance and permitting reforms help accelerate energy investments needed to strengthen the Philippines’ power supply reliability?

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