By Tracy Cabrera
Philippines, US, Japan Expand Luzon Economic Corridor to Boost Regional Investment and Connectivity
MANILA, Philippines — The Philippines, the United States, and Japan have expanded their flagship Luzon Economic Corridor (LEC) initiative to attract stronger domestic and international investment in infrastructure, supply chain development, and regional connectivity across Luzon.
Originally launched in April 2024 under the Indo-Pacific Partnership for Global Infrastructure and Investment (PGI), the LEC focuses on linking key economic hubs such as Subic Bay, Clark, Manila, and Batangas. The expanded framework now includes Australia, Canada, Denmark, France, Italy, South Korea, Sweden, and the United Kingdom as new partners.
Finance Secretary ad interim and LEC Steering Committee co-chair Frederick Go said the initiative prioritizes coordinated investments in transport systems, energy infrastructure, digital connectivity, and advanced manufacturing supply chains.
He added that the broader partnership is expected to generate thousands of jobs, draw in more investors, and accelerate economic transformation in Luzon.
Go stressed that the collaboration reflects a shared commitment to transparency and inclusive growth, noting that improved infrastructure will benefit both Filipinos and international business partners.
Member countries have pledged technical assistance, financing, and private sector support through working groups focused on transport, energy, and digital development.
Australia will mobilize investments through its Manila Deal Team, supported by its Partnerships for Infrastructure program and a US$2.6 million cooperation initiative promoting inclusive growth in the Philippines.
Canada has committed US$1.4 million for technical assistance projects and investor matchmaking under the corridor framework.
Denmark will support the revival of the Philippine shipbuilding sector through green maritime initiatives, expected to create up to 10,000 jobs.
France has pledged funding for 100 bridges and industrial capacity-building in aeronautics, while Italy is expanding financing for transport, semiconductor, and manufacturing projects.
South Korea will enhance transport and digital systems, including a US$2.6 million grant for the National Cyber Security Center and support for the NAIA modernization project.
Sweden will fund a feasibility study for signaling systems and operational models for the Subic-Clark-Manila-Batangas freight railway.
The United Kingdom will deploy its Growth and Investment Partnerships (GIP+) toolkit, offering technical assistance and up to US$6.8 billion in export finance.
Japanese Ambassador Endo Kazuya said the expanded LEC reflects a shared vision for quality infrastructure built on transparency, sustainability, and the rule of law, calling it a long-term platform for regional development.
ia/xf
