Press Release

MCC Signs $3.55 Million Grant with the Philippines to Assist with Development of Poverty Reducing Compact

For Immediate Release

February 24, 2010

Washington, D.C.The U.S. Governments Millennium Challenge Corporation (MCC) signed a $3.55 million grant today with the Government of the Republic of the Philippines to support the development of a potential compact to reduce poverty through economic growth.The Philippines will use the grant to recruit a procurement agent, develop the compact procurement strategy, create a bid challenge system, and provide a training program to prevent procurement fraud. The grant also will fund the recruitment of a fiscal agent to prepare a financial accounting system for the proposed compact program.

This is an important step forward in the development of the Philippines compact, said MCC Chief Executive Officer Daniel W. Yohannes. The grant agreement signed today provides funding to advance preparations for a possible compact program.If an MCC compact with the Philippines is approved by MCCs Board, the grant will serve to enhance the Philippines Governments ability to implement the compact program in a timely and transparent manner.

The grant awarded today is one step in the compact development process.In early 2009, the Philippines submitted a number of proposals for MCC compact funding, including transport infrastructure to improve access to markets and services for farmers, fishers and small enterprises, and the expansion of a community based rural development program focusing on poor areas.The proposals also include a redesign and computerization of key business processes in the Department of Finances Bureau of Internal Revenue that will reduce tax evasion and curb corruption while raising tax revenues.

MCC currently is finalizing a compact proposal based on these projects, for consideration by MCCs Board of Directors, chaired by U.S. Secretary of State Hillary Rodham Clinton.

Click here for additional information on how MCC is working together with the Republic of the Philippines to reduce poverty through economic growth.

# # #

Millennium Challenge Corporation (MCC), a United States Government agency designed to fight poverty in developing countries, is based on the principle that aid is most effective when it reinforces good governance, economic freedom, and investments in people that promote economic growth.

Keep connected with MCC via Facebook and Twitter, through videos at YouTube and Vimeo or by podcast.