Finance chief: PH open to fresh grants from US

Finance Secretary Carlos Dominguez III
(File photo by JOAN BONDOC / Philippine Daily Inquirer)

Finance Secretary Carlos G. Dominguez III on Friday said the government will be open to accepting a fresh grant from the US as long as the funding will be used for priority programs and projects of the Duterte administration.
READ: Under Trump, PH seen eligible for US development grant in 2018

“We welcome the decision of the Millennium Challenge Corp. (MCC) to approve a new compact for the Philippine government and thank them for this fresh grant offer. The government under the Duterte administration continues to vigorously implement initiatives that reinforce the Philippines’ commitment to good governance, peace and order and the rule of law,” Dominguez said in a statement.

“We will look into the conditions of the MCC grant and determine if they are aligned with our priorities,” Dominguez added.

In an Aug. 16 report, the MCC said the Philippines was among the candidate-countries for compact eligibility for fiscal year 2018.

Including the Philippines, the MCC identified 66 countries belonging to the low-income category, on top of nine lower middle-income countries.

The MCC said eligible countries were determined based on the following criteria: the country’s demonstrated commitment to just and democratic governance, economic freedom and investments in its people; the opportunity to reduce poverty and generate economic growth in the country; as well as the availability of funds.

For Dominguez, the inclusion of the Philippines in the MCC’s shortlist was a “testament to the fact that despite the political noise emanating from certain quarters, our development partners recognize our government’s commitment to reduce poverty and make growth inclusive while maintaining peace and order and upholding the rule of law.”

The Department of Finance earlier expressed optimism that the MCC board may grant the go-ahead for the second grant under the Trump administration as the US President and President Rodrigo Duterte have friendly relations.

To recall, the Washington-based MCC in December last year deferred to make a decision with regards a new compact for the Philippines to be spent on programs and projects fostering economic growth as well as slashing poverty.

That time, the MCC said the Philippines was “subject to a further review of concerns around rule of law and civil liberties.”

The deferment was made when Mr. Barack Obama was still US President, who was critical of Duterte’s war against drugs.

An MCC scorecard released in November last year nonetheless showed that the Philippines garnered passing scores in 13 out of the 20 indicators, including control of corruption, rule of law and civil liberties—an improvement from the performance in 2015 wherein the country passed in 12 indicators. JPV