US Grants Philippines $60 Million to Enhance MCC Compact Eligibility

The Philippines has inked a $60-million grant agreement with the United States to fund a Threshold Program aimed at strengthening the country’s eligibility for a future Millennium Challenge Corporation (MCC) Compact. The Millennium Challenge Corporation Threshold Program Grant Agreement (TPGA) — estimated at P3.68 billion — was signed by Finance Secretary Frederick Go and US Ambassador to the Philippines Lee Lipton on Thursday, September 10, 2026, at the sidelines of the Luzon Economic Corridor (LEC) Investment Forum. According to the Department of Finance (DOF), the Threshold Program — which will run for four years and nine months — will help the Philippines qualify for a future MCC Compact, a larger grant program that supports major economic development projects and policy reforms. “The MCC is an independent US Government international development agency that provides time-limited grants aimed at promoting economic growth, reducing poverty, and strengthening institutions,” the DOF said. The Threshold Program will support reforms under the Energy Development Governance Efficiency (EDGE) program, implemented by the Department of Energy (DOE), the Energy Regulatory Commission (ERC), the National Electrification Administration (NEA), and the National Power Corporation (NAPOCOR). EDGE has two major components: Permitting and Approvals Reform for Efficiency (PARE), which aims to speed up government processes, and Smart Utilities for Regional Growth in Energy (SURGE), which seeks to improve the reliability and sustainability of electric cooperatives. “Together, these will help energy investments and projects move faster, lessen power disruptions, and provide affordable energy for consumers. They will strengthen the delivery of better energy services that create long-term value for Filipino consumers, businesses, and the economy,” the DOF said. The Threshold Program will also include the American Investment Mechanism (AIM) Project, which aims to spur private sector investment and support coordinated investment with the US International Development Finance Corp. (DFC). “The AIM Project will help prepare high-impact projects for investment by providing funding for feasibility studies, project design, market assessments, and other support needed to make projects ready for financing,” the DOF said. —VAL, GMA News