US aid agency Millennium Challenge Corp. (MCC) on Wednesday confirmed the Philippines’ withdrawal from an application for an extension of a grant to build roads in remote areas of Eastern Luzon.
“The government of the Philippines has decided not to move forward with the development of a second MCC compact. MCC is proud of the achievements of our first compact with the Philippines, and both MCC and the United States are proud of our longstanding positive relationship,” it said in a statement after its board meeting on Wednesday morning Philippine time.
For Budget Secretary Benjamin E. Diokno, discontinuing the discussions for another MCC grant would free the Philippine government from possible intervention by the US government in its domestic affairs.
On Tuesday or before the MCC’s board meeting, presidential spokesperson Harry Roque announced in a Palace briefing that the Philippine government opted to withdraw from a possible second grant.
“We will focus instead on the rebuilding of Marawi,” Roque explained. “This is temporary. We will apply again some other time.”
The MCC board decided to grant Timor Leste a five-year grant while also selecting Gambia for a threshold program or a smaller grant.
The MCC’s latest country scorecards released in November, used as a basis whether or not a grant will be approved, showed the Philippines got failing marks in the areas of control and corruption and rule of law. The Duterte administration had then expressed optimism that the US aid agency would still extend the compact amid reforms being implemented.