US Increases Support for Subic-Clark-Manila-Batangas Railway with $1.3M Grant Boost

The United States has increased its funding for the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Railway, a key infrastructure project under the Luzon Economic Corridor (LEC), with an additional $1.3 million grant from the U.S. Trade and Development Agency (USTDA).

The funding bump, equivalent to roughly ₱72.2 million, brings the total USTDA grant for the study to $3.8 million. This strategic freight railway will span 250 kilometers, linking four major transport hubs: Subic Port, Clark International Airport, Port of Manila, and Batangas Port—through which about 80% of the country’s port traffic flows.

“This milestone demonstrates that RP-US economic ties are stronger than ever,” said Frederick Go, Special Assistant to the President for Investment and Economic Affairs. He emphasized the move as a sign of renewed investor confidence that is expected to generate more jobs along the corridor.

The SCMB project is part of a broader trilateral partnership between the Philippines, the U.S., and Japan, unveiled during the Trilateral Leaders’ Summit in Washington, D.C. in April 2024.

The Philippine government, through the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA), is coordinating with the Department of Transportation and the U.S. Embassy to finalize a Beneficiary Agreement for the project.

Additionally, discussions are underway with Sweden’s Swedfund for a separate $1.2 million grant to further support the railway initiative.