The United States remains committed to supporting the Luzon Economic Corridor and increased its funding for the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Freight Railway, according to Secretary Frederick Go, the Special Assistant to the President for Investment and Economic Affairs.
Go said the US Trade and Development Agency (USTDA) raised its grant from $2.5 million to $3.8 million, reinforcing its commitment to fast-track transformative projects that link key business hubs and bolster the country’s economic competitiveness.
“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,” said Go, who recently arrived from a meeting in Washington D.C. to negotiate bilateral tariffs.
Go said that on April 28, 2025, the USTDA notified the Department of Transportation (DOTr) and the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) of the grant approval.
The increase follows a competitive consultant selection and negotiation process. Pending final due diligence, the USTDA is expected to announce the selected US consultant shortly.
Go said that within the week, he would meet with the DOTr and the US Embassy to finalize the signing of the beneficiary agreement for the SCMB Freight Railway.
He said the Philippine government is also coordinating with Swedfund on a separate grant to advance the Luzon Economic Corridor, which intends to connect Subic Bay, Clark, Manila and Batangas through high-impact infrastructure.
The SCMB railway is designed to streamline logistics, cut transportation costs and create substantial employment opportunities.