Millennium Challenge Samar Roads Rehabilitation

Philippines Receives $434 Million Poverty Reduction Compact

On September 23, 2010 MCC signed a five-year, $434 million compact with the Government of the Republic of the Philippines focused on reducing poverty and promoting economic growth through the following projects.

With better road infrastructure in Samar, farmers there along with with everyone else living and working there will benefit from the Millennium Challenge Samar Roads Rehabilitation. Review more information below.

The Millennium Challenge Corporation (MCC) Chief Executive Officer Daniel Yohannes and Philippine Secretary of Finance Cesar Purisima today signed a five-year economic development compact granting $434 million to the Philippines for investments in roads, community development projects, and improvements to the country’s Bureau of Internal Revenue. U.S. Secretary of State Hillary Rodham Clinton and President of the Philippines Benigno Aquino III presided at the signing held at the Waldorf Astoria Hotel in New York City.

“This compact we are signing today was created by and for the people of the Philippines.” said MCC CEO Daniel Yohannes. “Reflecting the policies articulated by President Obama in his speech yesterday at the Millennium Development Goals Summit, the Philippines compact is a results-focused program promoting sustainable economic growth. This example of country-designed solutions strives to move the poor from poverty to prosperity,” Mr. Yohannes added.

The Philippines’ $434 million MCC compact provides funding for three major projects. First, the compact provides $214.4 million to construct and repair 220 kilometers of Samar Road. This road, which passes through 15 municipalities, will improve access to markets and services for farmers, fishers, and small businesses in some of the poorest provinces in the Philippines.

The compact also includes $120 million to expand Kalahi-CIDSS, a development project that empowers communities by encouraging their participation in poverty reducing activities. The project will provide community grants to support the building of critical infrastructure such as water systems, clinics, and schools. This innovative project design strengthens local accountability and allows poor communities to effectively design and transparently manage the projects they need to increase their incomes and improve their lives.

Finally, the compact includes $54.3 million in investments to computerize and streamline business processes in the Bureau of Internal Revenue. This project will bolster the effectiveness of revenue collection and reduce opportunities for corruption.

Millennium Challenge Corporation, a U.S. Government agency designed to work with developing countries, is based on the principle that aid is most effective when it reinforces sound political, economic, and social policies that promote poverty reduction through economic growth. For more information, please visit www.mcc.gov. Keep connected with MCC via Facebook and Twitter, through videos at YouTube and Vimeo or by podcast.

The Millennium Challenge Corporation (MCC) is an innovative and independent U.S. foreign aid agency that is helping lead the fight against global poverty. Created by the U.S. Congress in January 2004 with strong bipartisan support, MCC is delivering U.S. foreign assistance by focusing on good policies, country ownership, and results. MCC forms partnerships with some of the world’s poorest countries, but only those committed to good governance, economic freedom, and investments in their citizens, as measured by the MCC Country Scorecard. MCC provides these well-performing countries with large-scale grants to fund country-led solutions for reducing poverty through sustainable economic growth. To date, MCC has approved over $8.4 billion in compact and threshold programs worldwide.

Revenue Administration Reform Project: Raise tax revenues and reduce tax evasion and revenue agent-related corruption by increasing the efficiency and sustainability of revenue collection by the Bureau of Internal Revenue.

KALAHI-CIDSS: Enhance community-level infrastructure and social services and strengthen the capacity of local communities to identify, prioritize, design, and implement development projects focused on improving the lives of the poor.

Secondary National Roads Development Project: Reduce transportation costs through the rehabilitation of an existing 220 kilometer road segment on Samar Island. This Project will bring about savings in vehicle operating costs and time for both passengers and goods, and increase commerce in and between the provinces of Samar and Eastern Samar.

Compact implementation is managed by a Philippine accountable entity called Millennium Challenge Account – Philippines (MCA-P) which includes strict financial and procurement controls.

MCC is represented by a resident country mission who is responsible for ensuring the efficient and transparent implementation of the Compact.

Matthew L. Bohn, Resident Country Director
John Polk, Deputy Resident Country Director
Cheryl Orata-Idjao, Development Assistance Specialist
Corazon Minon, Program Management Assistant

6th Floor, Department of Finance Building
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