THE Australian government has allocated an initial 5-year AUD45 million, or roughly P2 billion, grant to the Philippines to foster private sector growth and support key areas, including clean energy, infrastructure and inclusive economic development.
Assistant Minister for Foreign Affairs and Trade Matthew James Thistlethwaite said during a launch last Tuesday that Australia wants to help the Philippines realize its ‘enormous’ potential through its flagship economic initiative dubbed ‘Progress.’
The initiative, called ‘Promoting Growth, Resilience, Economic Stability and Sustainability,’ seeks to support the country through targeted reforms to boost investment and trade and improve the ease of doing business.
‘We see [Southeast Asia] as an economic powerhouse of the future and one that has great potential and opportunity to develop and improve the living standards of the Filipino people and Southeast Asians more broadly,’ Thistlethwaite said in a separate news briefing.
The initiative will concentrate on renewable energy development, including establishing a carbon market and developing the offshore wind industry, as well as infrastructure development and reducing red tape.
It also aims to provide equal economic opportunities for women, people with disabilities and marginalised groups, Thistlethwaite added.
While the Australian government has not disbursed funding to specific projects yet, it has begun the scoping phase and worked with various Philippine government departments to identify projects and determine whether they meet the program’s objectives and make economic sense.
The subsidiary arrangement for Progress has been signed by Finance Secretary Frederick D. Go and Australian Ambassador Marc Innes-Brown PSM last March. The funding is a grant, not a loan, so there is no repayment period or interest.
Speaking at the launch, Go said the grant is a ‘timely investment’ in the Philippines, reflecting Australia’s commitment and confidence in the country’s development priorities.
‘The Philippines has reached the threshold for the upper middle income classification, and our focus now is to attract even more high multiplier investment, build industries and create more and better jobs,’ Go said.
‘Growth must translate into opportunity. Progress can help by improving the investment environment and strengthening the government’s capacity to deliver reforms,’ he added.
Progress is part of Australia’s broader efforts to drive global economic growth. ‘Our government has developed a strategy for deeper engagement with Southeast Asia, and it’s our plan up to 2040 to expand trade, to increase investment and to enhance business,’ Thistlethwaite said.