Manila: The Economy and Development Council (ED Council), chaired by President Ferdinand R. Marcos Jr., has approved several key adjustments to four US Government Assisted Development Objective Agreements (DOAgs), including increases in cost and extensions of implementation and grant validity periods.
According to Philippines News Agency, the Department of Economy, Planning, and Development (DEPDev) stated that the ED Council approved an increase in the funding for the Improved Health for Underserved Filipinos initiative, raising the cost to USD524 million from USD224 million. This adjustment aims to sustain improvements in health outcomes among underserved populations and enhance the overall health profile. Additionally, the council approved a cost increase for the Enhanced Ecosystem and Community Resilience project, now set at USD250 million from USD150 million. This project seeks to bolster the ability of natural systems to provide essential ecosystem services while addressing climate change challenges.
The council also extended the implementation timeline for two other programs: the Economic Growth and Democratic Governance with Equity and the Improved Basic Education Outcomes. Both programs will now continue until September 30, 2027, to further strengthen macroeconomic fundamentals and promote open governance, supporting inclusive growth and enhancing the Philippines' ability to achieve measurable improvements in learning outcomes.
DEPDev emphasized that these adjustments are intended to ensure continuity during the transition of project management from the United States Agency for International Development (USAID) to the US Department of State. ED Council Vice-Chair and DEPDev Secretary Arsenio Balisacan remarked that these timely changes are crucial for sustaining the gains achieved through these agreements and ensuring that programs continue to deliver meaningful results for the Filipino people.
In addition to the DOAgs, the ED Council approved changes to the Metro Rail Transit Line 3 (MRT-3) Rehabilitation Project. The Department of Transportation sought approval for modifications in project scope, cost, financing, and implementation timeline to address emerging technical requirements. These involve system upgrades, equipment rehabilitation, and facility improvements aimed at enhancing the MRT-3 system's long-term reliability and safety.
President Marcos directed the Department of Transportation to implement appropriate safeguards and ensure the sustained operations and maintenance of MRT-3 in both the short and long term. DEPDev also announced the approval of updated guidelines for the review and approval of major government programs and projects, applicable to new and ongoing projects requiring action from the ED Council or the Investment Coordination Committee (ICC).
The updated guidelines include raising the cost threshold for locally funded programs and projects to PHP5 billion and expanding ICC coverage to include Public-Private Partnership (PPP) projects. They also institutionalize the ICC's mandatory review of all foreign loan-assisted projects while excluding grant-assisted projects, which are reviewed by DEPDev. Balisacan emphasized that these changes aim to maximize the value delivered by government investments while streamlining the ICC process to minimize delays.
