The Philippines has decided to withdraw from the second compact of the United States' Millennium Challenge Corporation, citing that it has to focus its resources to war-torn Marawi City.

In a press briefing on Tuesday, Presidential Spokesperson Harry Roque said the Duterte government's decision had nothing to do with the supposed interference of US on the internal affairs of the Philippines.

"We have opted to withdraw from the second Millennium Challenge and this is because it was deemed by our policy makers --- the decision to withdraw was because of the urgent priority of the administration to rebuild Marawi," Roque said.

This was despite the first compact was responsible for the implementation of secondary national road development project; the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services; and Revenue Administration Reform Project of the Department of Finance, he said.

Roque explained the government needs to provide counterpart funding if it would become beneficiary of the MCC.

"We are confident that the US government fully understands the decision to reallocate our funding priority for this year and that this will not, in any way, adversely impact our eligibility for another round of compact assistance in the future because it calls for counterpart financing as well," he said.

Asked if the withdrawal has anything to do with the US interference on the Philippine affairs, Roque said, "No, none at all, not at all. Not this instance. It was really just that Marawi happened. We did not expect it and it’s going to be very costly rebuilding."

MCC had announced it wanted to support a second compact with the Philippines.

But in December 2016, the Washington-based MCC deferred to make a decision on whether a new grant would be provided to the Philippines after the first grant ended in May 2016.

The deferment was made as further review was conducted amid concerns on rule of law and civil liberties in the Philippines.

The Duterte administration has been criticized for extrajudicial killings in the wake of the war on drugs.

Roque said the economic team and primarily Foreign Affairs Secretary Alan Peter Cayetano reached the decision to withdraw from the second MCC compact. Celerina Monte/DMS