Enduring bilateral ties between the United States and the Philippines prompted the US Trade and Development Agency (USTDA) to pour an additional $1.3-million grant for the Luzon Economic Corridor (LEC), the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) announced on Sunday.

Funds to develop the LEC grew to $3.8 million from the previously pledged $2.5 million, signaling a strong commitment to fast-track transformative projects connecting key business hubs and strengthening the country’s economic position.

The approval of the additional grant is mainly focused on realizing the country’s ambitious infrastructure drive, which is the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Freight Railway, a flagship project of the LEC.

The OSAPIEA said the USTDA informed them and the Department of Transportation of the additional grant on 28 April following a competitive consultant selection and negotiation process.

Railway deal

The USTDA is set to announce the selected US consultant soon, pending final due diligence checks.

“The OSAPIEA is set to meet with DoTr and the US Embassy next week to discuss the signing of the Beneficiary Agreement for the freight railway. In parallel, the Philippine government is also working with Swedfund on a separate grant of $1.2 million to complement the project,” the OSAPIEA, headed by Secretary Frederick Go, said.

Further, the OSAPIEA said the development is a critical step toward the realization of the Luzon Economic Corridor, which aims to connect key economic hubs, namely Subic Bay, Clark, Manila and Batangas, through high-impact infrastructure projects, including the SCMB railway.

The railway is expected to streamline logistics, reduce transportation costs, and generate significant employment opportunities for Filipinos.

While in Washington, D.C. to negotiate for bilateral tariffs, Secretary Go remarked, “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.”

The Luzon Economic Corridor continues to attract international support, with the US, Japan, and other partners working closely with the Philippines to accelerate infrastructure-led growth and regional integration.

In a separate statement, Secretary Go revealed that negotiations between the Philippines and US Trade Representative Jamieson Greer for the 17 percent imposed tariff for all US-bound exports yielded constructive and positive results.

Secretary Go, who led the Philippine delegation, said the meeting with USTR Greer “went very well,” emphasizing that the interests of local industries remained central to the discussions.