Manila: The Millennium Challenge Corporation (MCC), an American international development agency, has approved a new grant to help modernize the Philippines' energy sector governance, the US Embassy in Manila announced on Friday. In a statement, the embassy announced that the MCC has approved the Philippine Threshold Program, which helps candidate countries become eligible for MCC assistance.

According to Philippines News Agency, the grant will assist the Philippine energy sector by 'building on whole-of-government efforts and closing critical gaps in the sector.' The MCC said the grant, approved in a meeting last June 24, will also address the high cost and unreliability of power in the Philippines, enable energy sector investment, strengthen institutions, and 'expand opportunities for American commercial engagement.'

'The approval of the Philippines Threshold Program reflects the strength of the US-Philippines partnership and our shared commitment to expanded economic opportunity and mutual prosperity,' said Christopher Landau, Deputy Secretary of State, who also presides over the MCC Board of Directors. 'By strengthening energy security, this program will help unlock US private-sector investment and support lasting, broad-based growth across the Philippines,' he added.

The MCC has invested more than USD 17 billion across 76 programs in infrastructure, policy reform, and institutional strengthening in partner countries over the past two decades. It integrates private-sector opportunities into its programs, ensuring benefits to the US are achieved alongside development impact.