The government of Sweden, through Swedfund International, has extended a P12-million grant to the Philippines to advance the flagship Subic-Clark-Manila-Batangas (SCMB) railway project, a key component of the Luzon Economic Corridor (LEC).
The grant, formalized in an agreement signed by Swedfund International and the Department of Transportation (DOTr), will fund a feasibility study focused on signaling systems and operational models for the SCMB Railway.
The railway is the anchor infrastructure of the LEC, designed to connect the major ports of Subic, Manila and Batangas to strengthen logistics and trade across Luzon.
Secretary Frederick Go, the Special Assistant to the President for Investment and Economic Affairs, said during the agreement’s presentation at Malacañang that the partnership “advances the President’s vision of developing globally competitive logistics infrastructure that will drive investment and inclusive growth.”
Go said the SCMB Railway is envisioned to be a transformative project that will modernize freight transport, boost trade efficiency, and generate jobs across the region.
Swedish Ambassador to the Philippines Anna Ferry lauded the collaboration. “This agreement with the Department of Transportation is a remarkable example of synergies between public and private efforts. We are proud to support the Philippines’ development goals with Swedish technology and expertise in transportation, and to help drive sustainable growth and opportunity,” she said.
DOTr acting Secretary Giovanni Lopez expressed gratitude for Sweden’s assistance, noting that the project would strengthen the country’s logistics and supply chain by providing a dedicated freight system linking key ports with industrial and economic zones.
“Once realized, it will reduce logistics costs, improve trade efficiency, and advance the administration’s goal of building a more competitive and connected economy,” said Lopez.
The Swedish grant complements funding support extended in June 2025 by the US Trade and Development Agency (USTDA) for related studies on transport modeling, port–rail integration and institutional planning. The Asian Development Bank (ADB) will oversee the procurement of consultants for the main feasibility study.
The Luzon Economic Corridor forms part of the trilateral cooperation among the Philippines, Japan and the United States to enhance infrastructure connectivity, promote sustainable industrial development, and drive inclusive economic growth across key growth centers in Luzon.
