PH secures $60-M MCC grant for energy sector

MANILA, Philippines – The Philippines has secured a $60-million compact grant from the United States Millennium Challenge Corp. (MCC) to help modernize energy sector governance, according to the Department of Finance (DOF).

The grant falls under the MCC’s Threshold Program, which provides time-limited assistance to developing countries to support strategic reforms, institutional strengthening, and economic modernization.

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A compact grant is a five-year agreement between the MCC and an eligible country.

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In a statement on Thursday, the DOF said the Philippines would use the grant to implement the Energy Development Governance Efficiency Project.

The project is expected to support reforms that would streamline energy planning, programming and permitting, helping accelerate the development of energy projects while strengthening governance and operational efficiency in the sector.

“This grant comes at an opportune time and provides a significant boost to our efforts to strengthen the country’s energy security,” Finance Secretary Frederick Go said.

“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,” he added.

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The DOF has been designated to coordinate with the MCC and relevant government agencies in the development and implementation of the program.

The Philippines was first selected by the MCC’s Board of Directors in December 2023 as eligible to develop a Threshold Program. In December 2024, the country was reselected to continue developing the program, with the MCC Board granting final approval in late June this year.

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“The approval of the US$60-million MCC Threshold Program affirms the Philippines’ commitment to good governance, transparency and sound economic management,” Go said.

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“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,” he added.

Notably, the grant comes as the Philippines grapples with an energy shock triggered by the Middle East war. The country remains particularly vulnerable to disruptions in the global oil supply chain, with about 98 percent of its oil imports sourced from the region.

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This crisis has since sent the Philippine economy to weaken further and inflation to rise to its highest level in three years. INQ