The Unites States has vowed to support the Philippines in turning Luzon into an economic corridor by way of investments, and in lending its expertise in infrastructure development.
Amos Hochstein, deputy assistant to US President Biden and senior advisor for energy and investment, said state-sponsored American projects in the Luzon Corridor will come in the form of integrated infrastructure development.
“We work with the government of the Philippines in identifying the exact infrastructure projects for development in Batangas and Subic Bay; (in) building the freight rail connecting Subic to Clark to Manila to Batangas,” Hochstein told reporters at the sidelines of the Indo-Pacific Business Forum in Taguig City.
Enoh Ebong, director of the US Trade and Development Agency (USTDA) said they are working to see how best it can apply their expertise in project development in the Luzon corridor and within the cities identified in the corridor.
Last April, the governments of US, Philippines and Japan announced the Luzon Corridor project that intends to connect Subic Bay, Clark, Manila and Batangas through modern ports, railways, clean power projects and supply chain improvements to advance the semiconductor and other industries.
The investments are eyed to be part of the Partnership for Global Infrastructure and Investment that the Group of Seven nations of Canada, France, Germany, Italy, Japan, the United Kingdom and the US announced in 2022. The Partnership aims to mobilize $600 billion in public and private sector funding for sustainable, quality infrastructure in developing and middle-income countries.
Hochstein said the first step in identifying projects in the Luzon economic corridor is the conduct of a feasibility study.
“Once you get the results of that, … next step is identify (the projects) based on those recommendations… We’re going to work with the (Philippine) government to accelerate processes,” Hochstein said.
In his remarks at the event, President Ferdinand Marcos Jr. vowed to turn Luzon into an economic corridor with focus on renewable energy and digitalization, among others.
Smart, sustainable transport
The President said his administration is also committed to making the Philippines into a leader in smart and sustainable transportation in the Indo-Pacific region, as he directed the Department of Public Works and Highways, Department of Transportation and the National Economic Development Authority to develop and implement transportation projects.
Marcos said the government is investing in everything from roads and railways to ports and airports with the intention of creating a transport network that is safe, efficient, and accessible.
During the event, Marcos again invited foreign investors to participate in the Philippines’ Build Better More infrastructure program which he said involves 185 priority projects worth P9.5 trillion.
Deals signed
Meanwhile, in the same event, the Department of Energy (DOE) sealed two memoranda of Understanding (MOUs) aimed at fostering collaboration to enhance capacity building in the energy sector.
The USTDA also awarded a grant to Filipino company Responsible Internet Sustainability Effort, Inc. for a feasibility study that will help internet service providers in the Philippines to strengthen the delivery of high-quality and resilient internet services, especially in underserved communities.
The study will advance RISE’s efforts to expand carrier-neutral internet exchange infrastructure through its GetaFIX business unit under the Carrier-Neutral Internet Exchange Point Rollout project.
Under the first MOU signed by the DOE, the agency and the Philippine-American Educational Foundation also known as the Fulbright Commission in the Philippines, will work together to establish a framework for creating scholarships and human resource development programs for the Philippine energy sector.
The second MOU signed by the DOE with the United States Agency for
International Development (USAID) where the latter will endeavor to provide development assistance to the former to achieve shared energy goals, including improving energy utility performance, increasing the deployment of advanced energy sources and systems, enhancing competition, ensuring resilient energy infrastructure and securing supply reliability.
The USAID will also provide technical and ancillary support to the DOE in leading the country’s clean energy transition program, implementing the Civil Nuclear Cooperation Agreement and developing a Smart and Green Grid Plan.
