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Swedish Government Grants PHP74 Million for Luzon Economic Corridor Railway Project


Manila: The Swedish government has extended a 12 million Swedish krona (approximately PHP74 million) grant to support the Luzon Economic Corridor’s flagship Subic-Clark-Manila-Batangas (SCMB) railway project. The agreement was formalized between the Government of Sweden, through Swedfund International, and the Department of Transportation (DOTr), and was presented at the Malaca±ang Palace.



According to Philippines News Agency, this grant will fund a feasibility study focused on signaling systems and operational models for the SCMB railway. This railway is a key infrastructure initiative of the Luzon Economic Corridor, designed to connect the major ports of Subic, Manila, and Batangas, thereby enhancing logistics and trade across Luzon. The Manila-based Asian Development Bank will manage the procurement of a consultant for the main feasibility study.



The presentation was led by SAPIEA Secretary Frederick Go and Swedish Ambassador to the Philippines Anna Ferry. They were accompanied by Daniel Wolv©n, Sweden’s Ministry of Foreign Affairs Department Head for Asia, the Pacific and Latin America, Johan Lennefalk, Sweden’s Trade Commissioner to the Philippines, along with DOTr officials including Acting Secretary Giovanni Lopez, and representatives from the Department of Finance and the Department of Foreign Affairs.



Secretary Go emphasized that the partnership between the Philippines and Sweden aligns with the President’s vision of developing globally competitive logistics infrastructure, which is expected to drive investment and inclusive growth. Ambassador Ferry expressed enthusiasm for the collaboration, highlighting it as a significant example of synergies between public and private efforts. She underscored Sweden’s pride in supporting the Philippines’ development goals with Swedish technology and expertise in transportation.



OSAPEIA also noted that Swedfund International’s support complements the June 2025 funding from the U.S. Trade and Development Agency, which is backing parallel studies on transport modeling, port-rail integration, and institutional planning.