MANILA, Philippines - President Benigno Aquino III personally wrote to US President Barack Obama last month before the Millennium Challenge Corporation approved $434 million in poverty- and corruption-fighting grants for the Philippines.

In his July 8 letter to Obama, Aquino told the US President that one area that could immediately benefit from continued cooperation between their two nations is the conclusion of the Philippines'  Millennium Challenge Account  compact agreement. A copy of the letter was published in Malacañang's official website (www.gov.ph) on Tuesday.

“Once the agreement is signed, the Philippine government will be able to implement the three development projects and the mutually agreed-upon conditions precedent submitted to the Millennium Challenge Corporation (MCC) for compact assistance,” Aquino said.

Aquino said the MCA pact will strengthen his administration’s resolve to improve the standard of living in the country.

“The elimination of poverty, through sustained economic growth, the promotion of good governance and addressing corruption, has been a solemn pledge during my campaign and which I and my government fully intend to accomplish,” he stressed.

“We are able to commit to MCC’s principles of ruling justly, investing in people, and promoting economic freedom for we also believe that these will form the foundations of a progressive Philippine society.”

Aquino told Obama that he has ordered Finance Secretary Cesar Purisima to discuss the Philippine government’s anti-corruption and policy improvement program with US Secretary of State and MCC board chair Hillary Clinton.

“Allow me to reiterate the Philippines’ continued commitment to the MCC process. We appreciate sustained US support and assistance as we embark on our mission to attain peace, justice and prosperity for the Filipino people,” he said.

Last week, the MCC board formally approved the Philippines’ 5-year MCA Compact proposal.

The plan, which will be implemented from 2010 to 2014, will see the MCC allocate $434 million to three development projects in the country. The MCC Compact grants will invest $54 million in computerizing and improving the tax collection activities of the Bureau of Internal Revenue; some $120 million will go to livelihood- and quality of life enhancing projects in the country’s poorest barangays; and $214 million will be spent for the construction and repair of 220 kilometers of roads that cut across the most marginalized communities of Samar Island and link it with the rest of the archipelago.

The Philippines became eligible for a Compact agreement as early as 2009, but the Arroyo administration continually flunked the corruption test, including the last one released for Fiscal 2010 (the US fiscal year starts in October).

On a median of zero, the Philippines scored a -0.20 or about 26% in the Control of Corruption parameter.

Diplomatic sources said the US government apparently wants to encourage the young Aquino administration to sustain and intensify its efforts at curbing graft, ending impunity and ensuring resources reach the poor and needy.

"The Filipinos have articulated a clear vision to improve the quality of their lives through a technically, environmentally and socially sound plan," Millennium Challenge Corporation (MCC) CEO Daniel Yohannes declared. With a report from Rodney Jaleco, ABS-CBN North America News Bureau