US boosts funding for Subic-Clark-Manila-Batangas Railway

The United States Trade and Development Agency (USTDA) has ramped up its funding for a flagship project of the Luzon Economic Corridor (LEC) by another $1.3 million following negotiations with Philippine economic officials, the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) said.

The additional funding, equivalent to P72.241 million based on the prevailing exchange rate of P55.57:$1, effectively increases the funding for the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Freight Railway to $3.8 million from $2.5 million.

“This milestone demonstrates that RP-US economic ties are stronger than ever,” Special Assistant to the President for Investment and Economic Affairs Frederick Go said in a statement.

“The increased USTDA grant for the SMB Rail pre-feasibility study signals renewed investor confidence and will translate to more job opportunities along the corridor,” he added.

The SCMB, a 250-kilometer railway, will connect the Port of Subic, Clark International Airport, Port of Manila, and Port of Batangas which facilitate an estimated 80% of the Philippine port traffic.

It is part of the LEC, a partnership with the United States and Japan, which was announced during the Trilateral Leaders’ Summit in Washington DC in April 2024.

According to the OSAPIEA, Go is set to meet with the Department of Transportation (DOTr) and the US Embassy to discuss the signing of the Beneficiary Agreement of the freight railway next week.

The government is also working with Swedfund on a separate grant of $1.2 million to complete the project. — RSJ, GMA Integrated News