The Economy and Development Council (ED Council), chaired by President Ferdinand R. Marcos Jr., advanced critical development initiatives by approving key adjustments for four US Government Assisted Development Objective Agreements (DOAgs), major changes to the Metro Rail Transit Line 3 (MRT-3) Rehabilitation Project, and updated guidelines for project evaluation. The decisions were made during the Council’s meeting on Thursday, October 2.
The ED Council approved government agencies’ requests for a total of $400 million in cost increases, along with implementation and grant validity period extensions, for four key DOAgs to ensure continuity and strengthen program impact.
The approved adjustments include:
- Improved Health for Underserved Filipinos (Department of Health): A $300 million cost increase (from $224M to $524M) to sustain health improvements and strengthen the overall health profile of underserved populations.
- Enhanced Ecosystem and Community Resilience (DENR, DOE, DA-BFAR): A $100 million cost increase (from $150M to $250M) to enhance the ability of natural systems to provide ecosystem services and address climate change.
- Economic Growth and Democratic Governance with Equity (Department of Finance): Extension of the Implementation Period up to September 30, 2027 to further strengthen macroeconomic fundamentals and promote open governance.
- Improved Basic Education Outcomes (Department of Education): Extension of the Implementation Period up to September 30, 2027 to scale up the Philippines’ capacity for sustained and measurable improvements in learning outcomes.
These revisions are crucial to ensuring seamless implementation during the transition of project management from the United States Agency for International Development (USAID) to the US Department of State.
“These timely adjustments are crucial to sustaining the gains we have achieved through these agreements. They will ensure that programs continue to deliver meaningful results for the Filipino people, particularly in health, education, economic growth, governance, and climate resilience,” said ED Council Vice-Chair and DEPDev Secretary Arsenio M. Balisacan. “By approving these measures, we are making sure that implementation remains uninterrupted despite the transition in management. This decision reflects our commitment to strengthen partnerships, protect hard-won progress, and keep our development priorities on track.”
Critical Adjustments for MRT-3 Rehabilitation Approved
The Council also approved critical adjustments to the Metro Rail Transit Line 3 (MRT-3) Rehabilitation Project, sought by the Department of Transportation (DOTr), to ensure its continued safe, efficient, and sustainable operations.
The adjustments involve changes in project scope, cost, financing, and implementation timeline to address emerging technical requirements. These include additional system upgrades, equipment rehabilitation, facility improvements, full replacement of main line rails, general overhaul of 72 Light Rail Vehicles (LRVs), and integration with related projects such as the MRT Common Station.
“The MRT-3 is a vital artery in Metro Manila’s transport network. These adjustments are necessary to meet evolving technical demands and ensure that commuters benefit from a safer, more efficient, and more reliable transit system,” Balisacan added.
President Marcos also directed the DOTr to implement appropriate safeguards to ensure the sustained short and long-term operations and maintenance of the MRT-3.
Streamlining Project Evaluation and Approval Process
Finally, the ED Council approved updated guidelines for the review and approval of major government programs and projects by the ED Council or the Investment Coordination Committee (ICC). The changes are designed to streamline project evaluation, promote discipline among implementing agencies, and ensure strategic alignment.
Key updates to the guidelines include:
- Raising the cost threshold for locally funded programs and projects to PHP5 billion.
- Expanding ICC coverage to include Public-Private Partnership (PPP) projects.
- Institutionalizing the ICC’s mandatory review of all foreign loan-assisted projects, regardless of amount, while excluding grant-assisted projects (which are reviewed by DEPDev).
“As we work to ensure that every peso invested by the government delivers maximum value for Filipinos, streamlining the ICC process and clarifying its scope will make project evaluation more rigorous while minimizing delays,” Balisacan concluded.
