The government remains hopeful on the future of the Luzon Economic Corridor (LEC) initiative despite the possibility of the US withdrawing its technical support for the project.
With the US’ dismantling of overseas development grants, the Philippines is likely to lose support including the $2.5-million technical assistance from the US Trade and Development Agency (USTDA).
Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Secretary Frederick Go acknowledged uncertainties due to shifting priorities in Washington but said he remained optimistic about continued economic cooperation.
“We’ll have to see how this develops, but I believe they are reviewing their priorities rather than pulling out entirely. The US remains a strong ally, and we expect this to translate into tangible economic benefits for our country,” he said.
The USTDA technical assistance was identified to support the early-stage project implementation and feasibility studies of the Subic-Clark-Manila-Batangas Freight Railway—LEC’s flagship project.
Go underscored the crucial role of state support in large-scale rail projects, noting that governments worldwide take the lead in infrastructure development before private sector players step in for operations and maintenance.
“The right of way acquisition alone is a major challenge that the private sector cannot handle. It is the government’s responsibility to roll out the necessary infrastructure, after which private companies can take over operations,” Go said.
While the US and Japan have been key players in the LEC, Go revealed that other nations, including the UK, Sweden, South Korea and Australia, also expressed strong interest in supporting the project.
He said South Korea, in particular, recently reaffirmed its commitment to LEC investments.
Despite these shifts, Go said the LEC would proceed as planned, with multiple international partners signaling readiness to push forward with or without US involvement.