The Philippine and Australian governments have started identifying projects, including those in renewable energy and the digital economy, to fund with a A$45-million grant designed to boost the country’s economic growth over the next five years.
In a press briefing, Australian Assistant Minister for Foreign Affairs and Trade Matt Thistlethwaite said the project priorities include renewable energy development, establishing a carbon market, and developing the offshore wind industry.
Other areas under consideration include reducing red tape, empowering women, small businesses, and people with disabilities, and developing the country’s digital economy.
‘This project is very much about providing support for the Philippines government to deliver on their priorities,’ Thistlethwaite said.
‘We’re very much in the scoping phase and working with the various Philippine government departments to identify where the priorities are and ensuring that the projects stack up and they make solid economic sense,’ he added.
The grant, which the Department of Finance (DOF) first secured in March, is under Australia’s Promoting Growth, Resilience, Economic Stability and Sustainability in the Philippines (Progress) program.
The Philippine government does not have to repay the A$45 million, which amounts to about P2 billion. Aside from the DOF, partner agencies include the Anti-Red Tape Authority, the Department of Energy, the Department of Trade and Industry, and the Department of Economy, Planning and Development.
The anticipated progress will also support job creation in the country. However, Thistlethwaite said the Australian government has yet to finalize a target for the number of jobs the program could generate.
He also assured that the team has not allocated any funds to specific projects, and they will start disbursing funds once they secure the necessary approvals.
‘So over time, as these projects are approved, we will make announcements in conjunction with the Philippines government regarding those projects and what they are, what they mean for communities in the Philippines,’ he said.
Moreover, the latest development comes four months after Australia joined the Luzon Economic Corridor (LEC), pledging financing and technical support for projects along the corridor.
Finance Secretary Frederick Go said Progress will help advance LEC projects from pipeline to execution.
‘Growth must translate into opportunity. Progress can help by improving the investment environment and strengthening the government’s capacity to deliver reforms,’ Go said in his speech.