THE United States has increased the funding grant for the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Freight Railway, a flagship project of the Luzon Economic Corridor, the Office of the Special Assistant to the President on Investment and Economic Affairs (OSAPIEA) said.
In a statement late Saturday, OSAPIEA said the US Trade and Development Agency (USTDA) boosted its funding for the project to $3.8 million from $2.5 million.
The OSAPIEA is set to meet with the Department of Transportation (DOTr) and the US Embassy next week to discuss the signing of the beneficiary agreement for the freight railway.
In parallel, the Philippine government is also working with Swedfund, Sweden’s development finance institution, on a separate grant of $1.2 million to complement the project, it added.
The OSAPIEA said the increase in funding follows a competitive consultant selection and negotiation process. The USTDA is set to announce the selected US consultant soon, pending final due diligence checks.
The OSAPIEA said the approval was officially communicated by USTDA to the DOTr and OSAPIEA last April 28, the day before Special Assistant and Secretary Frederick Go was to leave for Washington D.C. to negotiate for bilateral tariffs.
The OSAPIEA in the statement said Go commented on the development as a “great positive news. “
“This milestone demonstrates that RP-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,” OSAPIEA quoted Go as saying.
OSAPIEA said the USTDA grant is a critical step toward the realization of the Luzon Economic Corridor, which aims to connect key economic hubs-Subic Bay, Clark, Manila, and Batangas-through high-impact infrastructure projects, including the SCMB railway.
The railway is expected to streamline logistics, reduce transportation costs, and generate jobs for Filipinos.
The Luzon Economic Corridor continues to attract international support, with the US, Japan, and other partners working closely with the Philippines to accelerate infrastructure-led growth and regional integration, OSAPIEA said.
