PH Adds Investment Mobilization Project to $60M US Grant

MANILA, Philippines — The Philippines has added a second project to mobilize investments under the $60-million grant from the United States’ Millennium Challenge Corporation (MCC) Threshold Program. This follows the two countries’ signing of the Threshold Program Grant Agreement on Thursday, through Finance Secretary Frederick Go and US Ambassador to the Philippines Lee Lipton, on the sidelines of the Luzon Economic Corridor (LEC) Investment Forum. In a statement, the Department of Finance (DOF) said the program will now also include the American Investment Mechanism (AIM) Project, which seeks to help the US International Development Finance Corp.(DFC) bring more American private-sector investments into the country. The AIM Project will help prepare high-impact projects for financing by funding feasibility studies, project design, market assessments, and other support needed to make them investment-ready. “After a short period of absence, I am happy to say that a partnership today takes another step forward. This time, advancing two major priorities that are central to our economic future: strengthening energy security and mobilizing more investments,” Go said in his speech. “These two projects will strengthen our energy security, build more resilient supply chains, and draw greater investments into the Luzon Economic Corridor,” he added. AIM adds to the previously announced Energy Development Governance Efficiency (EDGE) Project, which will focus on improving energy-sector governance and the reliability of power services. The Department of Energy, Energy Regulatory Commission, National Electrification Administration, and National Power Corp. will implement EDGE. It has two components: the Permitting and Approvals Reform for Efficiency (PARE), which seeks to streamline government processes and facilitate the timely implementation of energy-related projects, and the Smart Utilities for Regional Growth in Energy (SURGE), which will introduce power-grid digitalization and help mobilize financing for strategic infrastructure investments. The government will implement the $60-million grant, which amounts to approximately P3.68 billion, over a period of four years and nine months. The MCC awarded the Threshold Program as its first grant to the Philippines since it halted its partnership with the country in 2009 due to human rights concerns. The MCC’s Board of Directors first selected the Philippines in December 2023 as eligible to develop a Threshold Program, and reselected it in December 2024. Go said the program aims to enhance the Philippines’ chances of becoming eligible for a future MCC Compact, which provides a significantly larger grant program. /pai