US hikes funding for Subic-Clark-Manila-Batangas railway study

MANILA, Philippines — The United States (US) has increased its funding for the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Railway, a flagship project of the Luzon Economic Corridor (LEC), raising the amount to $3.8 million from $2.5 million.

In a statement, the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) said the US Trade and Development Agency (USTDA) informed the office and the Department of Transportation (DOTr) of the grant approval on April 28.

The increased funding for the pre-feasibility study of the SCMB follows the conduct of a competitive consultant selection and negotiation process.

After the final due diligence checks, the USTDA will announce the selected US consultant for the project.

The OSAPIEA is set to meet with the DOTr and the US embassy next week to discuss the signing of the beneficiary agreement for the SCMB project.

While the US is increasing the funding for the SCMB project, the Philippine government is also working with Sweden’s development finance institution, Swedfund, on a separate grant of $1.2 million to complement the project.

Special Assistant to the President for Investment and Economic Affairs Frederick Go who was in Washington D.C. last week for tariff talks, welcomed the US’ increased funding for the SCMB.

“Great positive news. This milestone demonstrates that RP (Philippine)-US economic ties are stronger than ever. The increased USTDA grant for the SCMB Rail pre-feasibility study signals renewed investor confidence and will translate to more job opportunities along the corridor,” he said.

The OSAPIEA sees the latest development as a critical step in making the LEC a reality.

The development of the LEC is an outcome of the Trilateral Leaders’ Summit of the US, Japan and the Philippines in April last year.

It also forms part of the Partnership for Global Infrastructure and Investment initiative of the Group of Seven or G7 to advance public and private investments in sustainable, inclusive, resilient and quality infrastructure.

Through the SCMB Railway, the LEC aims to connect key hubs such as Subic Bay, Clark, Manila and Batangas.

Aside from enabling faster and efficient movement of goods and reducing transportation costs, the SCMB Railway is also expected to create employment opportunities.