The government will pursue the development of the Subic-Batangas Railway Project which may cost more than $7 billion, according to Secretary Frederick Go, the special assistant to the President for investment and economic affairs.
Go said during the annual economic forum hosted by the Economic Journalist Association of the Philippines and San Miguel Corp. that the proposed railway would be a part of the Luzon Economic Corridor.
“The Luzon Economic Corridor [LEC] is poised to become a major engine for economic growth in the Philippines, but realizing this vision requires a substantial influx of investments. With the Subic-Batangas Railway Project alone projected to cost over $7 billion, the LEC represents a significant opportunity for both domestic and international investors,” he said.
Go highlighted the LEC’s strategic importance in connecting key ports and economic zones across Luzon. By attracting funding for projects like the Subic-Batangas Railway, ports modernization, clean energy initiatives, semiconductor supply chains and agribusiness development, the Philippines aims to transform the LEC into a major economic hub.
The leaders of the United States, the Philippines and Japan announced in April 2024 their intent to develop the LEC as part of the G7 Partnership for Global Infrastructure and Investment (PGI) and as a key deliverable under the PGI IPEF Investment Accelerator.
The initiative aims to enhance connectivity between Subic Bay, Clark, Manila and Batangas and accelerate coordinated investments in high-impact infrastructure projects.
The corridor’s strategic location, handling 80 percent of the Philippines’ port traffic, positions it as a critical gateway for regional trade and investment.
Go said the government’s focus on addressing right-of-way (ROW) issues demonstrates its proactive approach to facilitate infrastructure development and overcome potential hurdles.
“By prioritizing ROW concerns as a legislative priority, the government aims to ensure the smooth implementation of projects within the LEC,” he said.
The government’s commitment to creating a conducive investment environment through public-private partnerships (PPP) and collaborations with G7 nations is key to attracting the necessary funding, Go said.
