The grant will finance the Promoting Growth, Resilience, Economic Stability and Sustainability in the Philippines (PROGRESS) Program, Australia’s flagship initiative aimed at supporting inclusive and climate-resilient economic growth in the country.

Under the program, funds will be used to reduce barriers to doing business, support small and medium enterprises (SMEs), strengthen government institutions, and advance reforms in key sectors such as energy transition and critical minerals.

The Subsidiary Arrangement for PROGRESS was signed by Finance Secretary Frederick D. Go and Australian Ambassador Marc Innes-Brown.

The DOF said the grant is designed to address long-standing challenges, including slow formal job creation, income inequality, and systemic barriers affecting women, persons with disabilities, and marginalized groups, while also helping the country navigate global uncertainties and climate risks.

A key component of the program is support for private sector growth, particularly through easing regulatory bottlenecks and expanding SME investments in clean energy, climate mitigation, and other high-growth sectors.

The program will also provide technical assistance to build institutional capacity, climate finance mechanisms to mobilize investments, and a Strategic Activities Fund (SAF) to support research, innovation, and targeted reforms.

Implementation will be overseen by the DOF in partnership with Australia’s Department of Foreign Affairs and Trade, with support from key Philippine agencies including the Anti-Red Tape Authority, Department of Energy, Department of Trade and Industry, and the Department of Economy, Planning, and Development.

The DOF said the initiative is expected to translate into more quality jobs, stronger businesses, and a more resilient Philippine economy.