October 26, 2025 | 12:00am
MANILA, Philippines — Sweden is providing $1.3 million in grant funding to support the feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Railway, the flagship project of the Luzon Economic Corridor (LEC).
In a statement, the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) said that an agreement was signed yesterday for the grant financing by the Government of Sweden through Swedfund International and the Department of Transportation.
The Swedish grant complements the funding from the United States Trade and Development Agency (USTDA) to support parallel studies on transport modeling, port–rail integration and institutional planning.
An agreement to formalize the USTDA’s technical assistance funding for the SCMB Railway was signed last June.
OSAPIEA said the Asian Development Bank would oversee procurement of the consultant for the main feasibility study for the SCMB project, that will link the major ports of Subic, Manila and Batangas.
“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,” SAPIEA Frederick Go said.
Go said that the SCMB Railway is expected to modernize freight transport, boost trade efficiency, as well as create jobs.
For her part, Swedish Ambassador Anna Ferry welcomed the strengthened cooperation between Sweden and the Philippines.
“We are proud to support the Philippines’ development goals with Swedish technology and expertise in transportation and provide a boost for sustainable growth and opportunities,” she said.
Acting Transportation Secretary Giovanni Lopez emphasized the importance of Sweden’s support for the implementation of the SCMB Railway.
“This project will strengthen the country’s logistics and supply chain by providing a dedicated freight transport system connecting major ports with industrial and economic zones,” he said.
“Once realized, it will reduce logistics costs, improve trade efficiency and advance the administration’s goal of building a more competitive and connected economy,” he also said.
The LEC forms part of the trilateral cooperation among the Philippines, Japan and the US.
Through the development of the LEC, the aim is to improve infrastructure connectivity, promote sustainable industrial development and drive inclusive growth in Luzon’s growth centers.