Key Conditions Precedent
To encourage desired investment outcomes under the compact, MCC and the Government of the Philippines agreed that the following conditions had to be met before critical funding would be available:
|Key Compact Component(s)
|Major Condition Precedent or Policy Reform Required
|Rating: Met on Time/Deferred/Met late/Not Met
|Secondary National Roads Development Project
|Department of Public Works and Highways shall provide proof of the availability of sufficient funds for the acquisition of land required for the Secondary National Road Project implementation.
|Department of Public Works and Highways included requisite funding in their budget request on time. However, fulfillment of the CP had to be deferred until the budget was passed by the Philippine Congress. CP was satisfied in July 2012.
|Kalahi-CIDSS Community-Driven Development Project
|Prior to EIF and annually thereafter, Department of Social Welfare and Development will provide MCC with a staffing plan and budget illustrating DSWD’s total contribution of USD $12 million in staff and funding over the life of the compact.
|Met on Time
|Revenue Administration Reform ProjectRevenue Administration Reform ProjectRevenue Administration Reform Project
|Bureau of Internal Revenue shall have established a Project Implementation and Monitoring Office who will have: (i) full time permanent staff members dedicated to the design and implementation of tax reform initiatives; (ii) sufficient number of support staff to complete eTIS; and (iii) clear responsibility for all modernization initiatives.
|Met one quarter late so that BIR could complete development of a staffing plan.
|By February 27, 2012 and annually thereafter, the IMF shall submit an annual assessment of BIR’s continued demonstration of commitment to tax reform, as evidenced by: (i) follow-through on decisions to reallocate staff to high-priority tasks; (ii) successful deployment of eTIS; and (iii) the maintenance and satisfactory staffing of the tax reform group.
|Met on time and annually thereafter, despite some difficulties fully implementing eTIS. A prerequisite for the continuation of eTIS was that each year the IMF in its assessment would rate BIR’s dedication of resources and progress toward goals as “satisfactory.” The BIR’s performance was rated as satisfactory in each of the IMF’s annual assessments.
|RIPS shall have: (i) an approved and funded budget to hire a minimum of 25 full-time and permanent staff; and (ii) hired or acquired through internal transfers key members of the RIPS and an adequate number of support staff.
|Met on Time