October 16, 2009
MCC Signs MoU to Help Facilitate Development Assistance with the Philippines
Washington, DC The U.S. Governments Millennium Challenge Corporation (MCC) signed a memorandum of understanding (MoU) today with the Government of the Republic of the Philippines to help facilitate its proposal for an MCC compact.MCC will provide $5.5 million to help the Philippines complete beneficiary analyses, engineering designs, and environmental and social impact assessments.These studies will help target investments to benefit the poor, inform project design to benefit women and vulnerable groups, and provide more reliable cost estimates for proposed projects.Together this information will ensure the Philippines final proposal for MCC compact funding includes complete information for consideration by MCCs Board of Directors.
The objective of the Philippines MCC compact proposal is to promote economic growth by providing access to markets for farmers, fishers and small enterprises through improved transport networks, and to support community-led development in some of the poorest regions in the country.The proposal also addresses the areas of tax evasion and corruption while helping to raise tax revenues through a redesign and computerization of business processes within the Department of Finance, ultimately improving the investment climate of the country.
The MoU signed today is one step in the process of developing a compact with MCC.The Philippines MCC compact proposal remains under development. The Philippines must be reselected as eligible by MCCs Board of Directors for compact funding before the final terms of any compact will be negotiated.Final approval of the compact proposal will also require approval from MCCs Board.Relevant congressional review periods will take place throughout the process.
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Millennium Challenge Corporation, a U.S. government agency designed to work with developing countries, is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote poverty reduction through economic growth.For more information, please visit www.mcc.gov.