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Millennium Challenge Corporation
January 1, 2022

The Millennium Challenge Corporation (MCC) is a U.S. Government agency helping lead the fight against global poverty through sustainable economic growth. It was created by Congress in 2004 and operates based on the guiding principles of competitive selection, country-led design, country-led implementation and a focus on results. More than $10 billion has been provided to the world’s poorest countries supporting projects that improve vital infrastructure, support good governance, enhance access and provision of social services, and develop opportunities for finance and enterprise. A performance-based model, our partner countries are required to demonstrate a commitment to good governance, economic freedom and investing in their citizens or MCC may stop investing.

In the Philippines, MCC signed a five-year, $434 million Compact in September 2010 supporting the following projects:

Comprehensive and Integrated Delivery of Social Services (Kalahi-CIDSS), implemented with the Department of Social Welfare and Development, is a community-driven development model that helps local communities identify, design, and implement basic infrastructure and social services projects on their own.

Secondary National Roads Development Project (SNRDP) implemented with the Department of Public Works and Highways will reduce transportation costs and improve access to markets and social services through the rehabilitation of a 222-km road segment in the provinces of Samar and Eastern Samar.

Revenue Administration Reform Project (RARP) will modernize tax administration and mitigate risks of corruption in the Department of Finance.

The Philippine government created the Millennium Challenge Account-Philippines (MCA-P) to manage Compact implementation, MCA-P is composed of 40 professional and administrative staff, works with government agencies and engages contractors to provide support services. Immediate results have been reported in the final year of implementation:To date, over 2,400 Kalahi-CIDSS sub-projects such as roads, schools, health stations, rural electrification, harvest facilities, and flood control measures have been completed and are being used by the residents of the poorest municipalities in Luzon and Visayas. By the Compact’s end on May 2016, more than 3,500 sub-projects will be completed, exceeding initial project target of 2,740 and benefiting millions of Filipinos.

Road construction in Samar and Eastern Samar is in full swing, with more than 70% of the road project carriageway completed and local councils against human trafficking established in 16 municipalities covered by the project area.

BIR is improving tax collection and growing the revenue base, primarily through a more focused and automated audit and arrears management programs, upgraded back-end tax administration system, and intensified public awareness campaigns. Contributing to the fight against corruption, several customs and revenue employees have been dismissed from service due to improvements in the investigative capacity of the Department of Finance.

MCC’s resident country mission in Manila is composed of Resident Country Director John A. Polk, Deputy Resident Country Director Burak Inanc and three LES who provide oversight for the Compact.

3/F, Department of Finance Building
Bangko Sentral ng Pilipinas Complex
Roxas Boulevard, Manila
Tel: (632) 8405-0146, Fax: (632) 8527-2106