The Philippines and the United States have signed a USD60 million (around PHP 3.68 billion) Millennium Challenge Corporation (MCC) Threshold Program Grant Agreement (TPGA) to support energy sector reforms, improve the affordability and reliability of power, and mobilize more investments.
The TPGA was signed by Finance Secretary Frederick D. Go and US Ambassador to the Philippines Lee Lipton on September 10, 2026 at the sidelines of the Luzon Economic Corridor (LEC) Investment Forum.
“We extend our gratitude to the U.S. government for approving a 60-million-US dollar grant under the MCC Threshold Program. This support will help us address key policy and institutional gaps to strengthen the foundations of our energy sector,” Secretary Frederick Go said.
The grant will fund a Threshold Program that will be implemented for four years and nine months designed to help the Philippines strengthen its eligibility for a future MCC Compact––a larger grant program that supports major economic development projects and policy reforms.
The program will support reforms under the Energy Development Governance Efficiency (EDGE) Project, which will be implemented by the Department of Energy (DOE), Energy Regulatory Commission (ERC), National Electrification Administration (NEA), and National Power Corporation (NAPOCOR), to help create a more reliable, efficient, and responsive energy system.
The EDGE Project has two components. The Permitting and Approvals Reform for Efficiency (PARE) component will speed up government processes for the energy sector, which can help reduce transaction cost and facilitate timely development and implementation of energy-related projects.
Meanwhile, the Smart Utilities for Regional Growth in Energy (SURGE) component will help electric cooperatives improve the reliability and sustainability of their services by introducing power grid digitalization and helping mobilize financing for strategic infrastructure investments.
Together, these will help energy investments and projects move faster, lessen power disruptions, and provide affordable energy for consumers. They will strengthen the delivery of better energy services that create long-term value for Filipino consumers, businesses, and the economy.
Apart from EDGE Project, the Threshold Program will also include the American Investment Mechanism (AIM) Project, which aims to catalyze private sector investment and support coordinated investment with the US International Development Finance Corporation (DFC).
The AIM Project will help prepare high-impact projects for investment by providing funding for feasibility studies, project design, market assessments, and other support needed to make projects ready for financing.
The MCC is an independent US Government international development agency that provides time-limited grants aimed at promoting economic growth, reducing poverty, and strengthening institutions.
