Deemed to entice more investments and jobs for the Filipino workforce, Finance Secretary Frederick Go revealed that the governments of the Philippines, the United States, and Japan announced the expansion of the Luzon Economic Corridor (LEC) partnership, which is now tapping the governments of Australia, Denmark, France, Italy, the Republic of Korea, Sweden, and the United Kingdom.
The LEC, announced in April 2024 as the first Partnership for Global Infrastructure and Investment (PGI) corridor in the Indo-Pacific, enhances connectivity between Subic Bay, Clark, Manila, and Batangas.
Through coordinated investments in transport infrastructure, energy systems, digital connectivity, and advanced manufacturing supply chains, the LEC will create thousands of high-quality jobs and transform Luzon into a more prosperous and interconnected region.
“The expansion of the LEC partnership demonstrates the power of collaboration among like-minded nations committed to transparency and shared prosperity,” said Secretary Go, also the co-chair of the LEC Steering Committee.
“Together, we are building infrastructure that will improve daily life for millions of Filipinos and create new opportunities for businesses, industries, and communities in our partner countries and across the region,” he added.
With this, Go said the LEC partners share a commitment to a free and open Indo-Pacific and pledge to promote fair and transparent economic development.
Each member nation will contribute through technical assistance, financing, and facilitation of private sector investments, while actively participating in working groups focused on transport, energy, and digital infrastructure.
Partnership deal
As it now joins LEC development, Australia is mobilizing investment through Australia’s Manila Deal Team, reinforced by technical assistance under the Partnerships for Infrastructure program and a new P1.9-billion ($32.6-million) partnership with the Philippines on inclusive economic growth.
Denmark is contributing to the LEC by revitalizing Philippine shipbuilding, advancing green maritime innovation, and fostering investments, jobs, and sustainable industrial development. Working with the government and the private sector, Denmark’s shipbuilding initiative aims to create 10,000 jobs.
France is strengthening connectivity in the LEC by financing 100 bridges through official development assistance and industrial capacity building through a foreign direct investment project in the aeronautics sector.
Italy is contributing to the development of quality, resilient, and sustainable infrastructure by increasing its public financial support to facilitate private sector investment from Italian companies in the transport, semiconductors, and manufacturing sectors.
The Republic of Korea is contributing to enhanced transport and digital connectivity and sustained economic growth along the LEC through Official Development Assistance and Public-Private Partnership initiatives, including a P1.5-billion ($25.6-million) grant to establish the National Cyber Security Center and the Ninoy Aquino International Airport modernization PPP Project.
Sweden is contributing to Luzon’s Subic-Clark-Manila-Batangas freight railway through a P74-million ($1.2-million) grant to fund a feasibility study on signaling systems and operational models.
Finally, the United Kingdom is deploying its full Growth and Investment Partnerships (GIP+) toolkit in the LEC, providing technical assistance, P411 billion ($6.8 billion) in export finance, and mobilizing capital toward infrastructure and energy projects.
“The expansion of the LEC partnership shows what we can accomplish when like-minded nations unite around strategic infrastructure and shared prosperity. This initiative is creating real opportunities for US businesses, our Philippine partners, and investors across the Indo-Pacific while countering exploitative infrastructure practices with a better alternative,” said US Senior Advisor for Economic, Energy, and Business Affairs Ambassador Heather Variava.
“This expanded partnership reflects our shared vision for quality infrastructure development that respects transparency, sustainability, and the rule of law,” said Ambassador of Japan to the Philippines Endo Kazuya. “Together, we are building connectivity that will benefit generations of Filipinos and strengthen economic ties across the Indo-Pacific.”