Swedish gov’t extends P76-million grant for Subic-Clark-Manila-Batangas Railway

The government of Sweden is extending a financing grant to bankroll the study for the planned Subic-Clark-Manila-Batangas (SCMB) Freight Railway project.

In a news release on Tuesday, the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) said that Sweden—through its development finance institution Swedfund International, Swedfund International—and the Department of Transportation (DOTr) signed the grant agreement.

The grant amounting to Swedish krona (SEK) 12 million or about $1.3 million (around P76 million) will fund a feasibility study on signaling systems and operational models for the SCMB Railway. 

The railway project is a key infrastructure project under the Luzon Economic Corridor initiative —a partnership with the United States and Japan, which was announced during the Trilateral Leaders’ Summit in Washington DC in April 2024.

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.

“This partnership between the Philippines and Sweden advances the President’s vision of developing globally competitive logistics infrastructure that will drive investment and inclusive growth,” said SAPIEA Frederick Go.

OSAPIEA sais Go presented the signed grant agreement at the Malacañan Palace.

Joining Go during the presentation were Sweden’s Ministry of Foreign Affairs Department Head for Asia, the Pacific and Latin America Daniel Wolvén, Swedish Ambassador to the Philippines Anna Ferry, Sweden’s Trade Commissioner to the Philippines Johan Lennefalk, and DOTr officials led by Acting Secretary Giovanni Lopez, along with representatives from the Department of Finance and the Department of Foreign Affairs.

“This additional agreement with the Department of Transportation is a remarkable example of synergies and cooperation between public and private efforts. We are proud to support the Philippines’ development goals with Swedish technology and expertise in transportation and provide a boost for sustainable growth and opportunities,” said Ferry.

DOTr’s acting chief Lopez, for his part, emphasized the importance of Sweden’s support in realizing the SCMB Railway project. 

“On behalf of the Department of Transportation, we express our gratitude to the Swedish government for this valuable assistance to the Subic–Clark–Manila–Batangas Freight Railway Project,” said Lopez.

“This project will strengthen the country’s logistics and supply chain by providing a dedicated freight transport system connecting major ports with industrial and

economic zones. Once realized, it will reduce logistics costs, improve trade efficiency, and advance the administration’s goal of building a more competitive and connected economy,” he added.

This Swedish grant complements the funding boost from the US Trade and Development Agency amounting to a total of $3.8 million for the parallel studies on transport modeling, port–rail integration, and institutional planning.

The SCMB Railway is meant to link major ports in Luzon and decongest traffic at the Port of Manila. — BM, GMA Integrated News