THE US Trade and Development Agency (USTDA) has increased funding for the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) railway to $3.8 million, according to the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA).
“The US has ramped up its support for the Philippines’ ambitious infrastructure drive, approving a major grant increase for the pre-feasibility study of the SCMB Freight Railway — a flagship project of the Luzon Economic Corridor,” OSAPIEA said in a statement over the weekend.
“The USTDA boosted its funding for the project from $2.5 million to $3.8 million, signaling a strong commitment to fast-track transformative projects that will connect key business hubs and strengthen the country’s economic position,” it added.
According to the OSAPIEA, the USTDA officially informed the Philippine government of the grant approval on April 28.
“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,” it said.
Secretary Frederick D. Go, who heads the OSAPIEA, is set to meet with the DoTr and the US Embassy this week to discuss the signing of the beneficiary agreement for the SCMB railway.
“This development 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,” OSAPIEA said.
“The railway is expected to streamline logistics, reduce transportation costs, and generate significant employment opportunities for Filipinos,” it added.
Meanwhile, the Philippine government is also working with Swedfund on a separate grant of $1.2 million for the project.
The Luzon Economic Corridor, being undertaken via a trilateral agreement among the Philippines, the US, and Japan, is part of a broader collaboration supported by the G7 Partnership for Global Infrastructure and Investment.
“This milestone demonstrates that Philippines-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,” Mr. Go said. — Justine Irish D. Tabile “