USTDA increases fund support for railway pre-feasibility study

The US Trade and Development Agency (USTDA) has increased its funding for the pre-feasibility study of the Subic-Clark-Manila-Batangas (SCMB) Freight Railway, from $2.5 million to $3.8 million.

This development marks a significant step in advancing the Luzon Economic Corridor (LEC), which aims to connect key economic hubs— Subic Bay, Clark, Manila, and Batangas, through high-impact infrastructure projects, including the SCMB railway. The railway is projected to streamline logistics, reduce transportation costs, and support large-scale employment for Filipinos.

"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," Special Assistant to the President for Investment and Economic Affairs Frederick Go commented while engaging in trade negotiations in Washington D.C.

The Office of the Special Assistant to the President for Investment and Economic Affairs is set to meet with the Department of Transportation and the US Embassy to discuss the signing of the Beneficiary Agreement for the freight railway system.

The funding increase follows a competitive selection and negotiation process. The USTDA is expected to announce the chosen US consultant soon, pending final due diligence checks.

Currently, the Philippine government is collaborating with Swedfund on a separate grant of $1.2 million to support the project.