Photo courtesy: Department of Transportation
The Luzon Economic Corridor (LEC) received a major boot from the Government of Sweden with a $1.3 million (P76 million) grant for the Subic-Clark-Manila-Batangas (SCMB) railway project.
Under the agreement signed between between Swedfund International and the Department of Transportation (DOTr) on Wednesday, the funding will support a feasibility study on signaling systems and operational models for the SCMB railway, the anchor infrastructure of the LEC that designed to connect the major ports of Subic, Manila, and Batangas.
Special Assistant to the President for Investment and Economic Affairs Frederick Go said the SCMB Railway is expected to modernize freight transport, improve trade efficiency, and create jobs across Luzon.
“This partnership between the Philippines and Sweden advances the President’s vision of developing globally competitive logistics infrastructure that will drive investment and inclusive growth,” Go said.
Swedish Ambassador Anna Ferry described the agreement as a sign of strong cooperation between Sweden and the Philippines, noting that Swedish technology and expertise in transportation can play a valuable role in supporting the country’s sustainable development goals.
Acting Transportation Secretary Giovanni Lopez said Sweden’s support will help strengthen the country’s logistics and supply chain through a dedicated freight transport system connecting key industrial and economic zones.
The Swedish grant complements funding from the U.S. Trade and Development Agency announced in June 2025, which covers parallel studies on transport modeling, port–rail integration, and institutional planning. The Asian Development Bank will manage the procurement of the consultant for the main feasibility study.
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