The United States Millennium Challenge Corporation (MCC) Board of Directors approved a USD60 million threshold program for the Philippines to advance the country’s energy security and governance reforms.

In a statement Thursday, the Department of Finance (DOF) said the Philippines is one of the select group of countries chosen for the MCC threshold program, which supports nations in addressing key policy and institutional constraints to economic growth and preparing them for future MCC compact assistance.

The Philippines qualified for the program after meeting the MCC’s policy performance standards across the areas of economic freedom, ruling justly and investing in people.

The threshold program will support the Energy Development Governance Efficiency Project, which seeks to improve governance and operational efficiency across the country’s electricity sector.

The project will support policy and regulatory reforms to streamline energy planning, programming and permitting, accelerating the development of energy projects.

It will also finance targeted investments that reinforce these reforms and improve the efficiency of energy sector operations.

The initiatives are expected to reduce delays in project implementation, improve the reliability of electricity supply and encourage greater private investment in the energy sector.

Finance Secretary Frederick Go said the approval is a strong vote of confidence in the Marcos Jr. administration’s reform agenda.

“The approval of the US$60-million MCC Threshold Program affirms the Philippines’ commitment to good governance, transparency, and sound economic management. It reflects the confidence of our international partners in the reforms we are pursuing to strengthen institutions, improve the ease of doing business, and create more opportunities for Filipinos,” Go said.

The DOF will work closely with the corporation and relevant government agencies to develop and implement the program.

“This grant comes at an opportune time and provides a significant boost to our efforts to strengthen the country’s energy security. We thank the MCC for its continued partnership with the Philippines as we pursue reforms that deliver more reliable services, attract greater private investment, and sustain faster, more inclusive economic growth,” Go said.

The MCC is an independent U.S. foreign assistance agency that provides time-limited grants to support reforms that promote economic growth, reduce poverty, and strengthen public institutions. (PNA)