Finance Secretary Cesar V. Purisima on Thursday said a $434-million grant from US-backed Millennium Challenge Corp. (MCC) has taken effect, which kicks off the implementation of three major projects meant to help reduce poverty in the country.
Purisima, who is also vice chairman of the Millennium Challenge Account-Philippines (MCA-P), said the grant’s activation was achieved on schedule.
This followed Malacanang’s completion of the grant agreement conditions relating to project preparation and documentation, which involved the Department of Finance (DoF) and Department of Justice, as well as other implementing agencies.
Tasked to implement the grant agreement are the Department of Social Welfare and Development, Department of Public Works and Highways, Bureau of Internal Revenue (BIR) and the DoF’s Revenue Integrity Protection Service.
Purisima added that MCA-P, the Philippine entity responsible for managing the grant, is now fully staffed and mobilized to implement the agreement signed last September and which runs for five years.
This “shows the Aquino administration’s strong resolve to undertake infrastructure projects that promote sustainable economic growth and to help reduce poverty across all regions of the country in the soonest time possible,” he said.
This milestone “is only a first step along a path with many challenges along the way, [but I am confident that] after five years, the Philippines will become a model for best practices at MCC,” he added.
The grant’s objectives include a $54.3-million revenue administration reform project meant to help raise tax revenues and reduce tax evasion and corruption through reforms at the BIR, and modernization of the revenue collection system.
The grant also provides funding for the $120-million Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services, which is meant to improve community-level infrastructure and social services for the poor, and strengthen the capacity of local communities to address poverty.
A third component is the $214.44-million secondary national roads development project, which is expected to reduce transportation costs through the rehabilitation of an existing 220-kilometer road segment in Samar.