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What is MCC?

• The Millennium Challenge Corporation is a U.S. Government agency designed to reduce poverty through economic growth in select developing countries.

Good governance

Economic freedom

Investments in people

MCC’s mandate: Reduce poverty through economic growth.

• Created with bipartisan support by the U.S. Congress in 2004
• Led by a governing Board of Directors:
• Secretary of State (Chair) • MCC Chief Executive Officer • Secretary of the Treasury • U.S. Trade Representative • USAID Administrator • Four members of the private sector

Two Types of Poverty Reduction Programs

MCC Compacts

• •

Threshold Programs

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5-year grants
Large-scale and complex Awarded to eligible countries as determined by MCC’s eligibility criteria and final vote of the MCC Board of Directors $8.1 billion awarded as compact grants 23 partner countries in Latin America, Africa, Europe, the Middle East, Asia, and the Pacific (19 active)

2- or 3-year grants
Smaller in scale and objectives Awarded to countries not compacteligible but committed to improving policy performance

• •

$495 million awarded as Threshold grants
21 partner countries in Latin America, Africa, Europe, the Middle East, and Asia (7 active)

Implemented by the partner country government with guidance and oversight from MCC

Implemented by MCC and USAID in consultation with the partner country government

What’s different about MCC?

Competitive selection Country-led design
Country-led implementation

Focus on results

Where are we Working?

The MCC Effect
• MCC Compacts are powerful incentives for countries to adopt stable and effective policies in order to become compact-eligible • Aid is more effective when governments are invested in their people • Open policies encourage private investment and increased trade, creating a sustainable environment for economic development

Distribution of Investments

MCC & the Philippines
On September 23, 2010 MCC signed a
• Five-year, $434 million compact with the Government of Republic of the Philippines to
• Support reforms and investments to modernize the Bureau of Internal Revenue

Expand and improve a community-driven development project, Kalahi-CIDSS
Rehabilitate a secondary national road in Samar province

Compact Project Details
Secondary National Roads Development Project
• • • Allocation of $214.4 million Rehabilitation 222 km of road Outcomes: • Reduced vehicle operating costs • Reduced travel time for passengers and goods • Reduced road maintenance costs • Increased commerce in and between the provinces of Samar and Eastern Samar

Revenue Administration Reform Project
• • Allocation of $54.3 million Addresses the need to raise tax revenues and reduce tax evasion and revenue agent-related corruption through focusing on increasing efficiency and sustainability of revenue collection through: • Redesign and computerization of business processes • Narrowing gap between potential and actual collections • Reducing the discretion of individual tax and customs collection officers, • Improving the predictability and impartiality of collections


Kalahi-CIDSS project
• • Allocation of $120 million Improve lives in rural areas by targeting communities where poverty exceeds the national average for small-scale, community-driven development projects through • • • • Direct provision of infrastructure and services associated with community-selected and managed sub-projects Strengthened community participation in development and governance activities at the village and municipal level Improved responsiveness of local government to community needs Support the participatory planning, implementation, and evaluation methodology developed by the Philippines Department of Social Welfare and Development in collaboration with the World Bank.

Why do Business with MCC?
All Money Up-front
• All money is appropriated up front by the US congress with no incremental or partial funding.

Paid by the U.S. Treasury
• This mitigates most of the risks associated with working in Emerging or Poor economies and guarantees that invoices are paid as quickly as possible.

MCC Checks Guarantee Companies a Fair Shake
• The MCC model has checks and oversight at every step of the procurement process to make sure that companies are getting a fair shake

Enforced International Environmental and Labor Standards
• MCC works carefully to ensure that no MCC funded companies abuse the environment or engage in unfair/unsafe labor practices.

The Business of Doing Good
• business partners break through the on-going barriers to poverty in some of the poorest countries in the world.

How Can Philippine Diaspora Groups Get Involved?

• MCC is committed to maintain and liaise with key MCA country partner NGOs in country and in USA • Invitation to Innovate:
• (I to I), is a framework to facilitate the development of partnerships with the private sector and non-governmental organizations (NGOs).
• Solicit innovative partnership ideas from the private and non-governmental sectors to introduce new technologies and approaches for development

• Please review the ‘Invitation to Innovate’ grant program at (

• Procurement Opportunities
• Open, Planned & Awarded Opportunities at/above $200k all posted to

• (

Procurement Opportunities:

• Visit: (

Other Opportunities
• MCC senior officials welcome making presentations at Diaspora Conferences/events in USA • MCC invites Diaspora leaders to make suggestions on how MCC and USG can be more responsive to their questions/issues

For more information, please contact our Public Affairs Department at:
Please sign up for MCC updates and invitations to MCC events on the website