PH may not get new financial aid from MCC

MANILA, Philippines – The Millennium Challenge Corp. (MCC) said Friday, October 19, it may not sign a new aid agreement with the Philippines as it wants private investors to take an active role in development programs.

“If the Philippines grows 8, 9, 10% investments, there is no need for a second compact,” said MCC CEO Daniel Yohannes at the joint membership meeting of the Makati Business Club and the Management Association of the Philippines.

A compact is a multi-year agreement between the MCC and an eligible country to fund specific programs targeted at reducing poverty and stimulating economic growth.

“Much of MCC’s work [in the Philippines] is already done and we want investments to come from the private sector. But who knows what will happen in 3 years,” Yohannes said.

The MCC and the Philippines signed a 5-year compact that will end in 2015. The compact has financed $434 million worth of projects.

These projects include:

• Department of Public Works and Highways Secondary National Roads Program and the Department of Social Welfare worth $214.4 million;
• Development’s Kapit-bisig Laban sa Kahirapan–Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS) worth $120 million; and
• Finance Department’s Enhancing Fiscal Governance through Procedural Reforms and Technological Applications project worth $54.3 million.

– Rappler.com