US boosts aid for Subic-Batangas cargo railway
Washington has firmed up increased aid to the Subic-Clark-Manila-Batangas (SCMB) Railway project as part of efforts to flex America’s “leadership in the Indo-Pacific” region.
In a joint statement on Friday, the Department of Transportation (DOTr) said it had formalized an agreement with the US Trade and Development Agency (USTDA), which was signed in Arlington, Virginia.
Last month, Secretary Frederick Go of the Office of the Special Assistant to the President for Investment and Economic Affairs said the USTDA had increased its study grant for the railway’s pre-feasibility study to $3.8 million from $2.5 million.
Under the agreement, the USTDA will aid in crafting the transport model development, port-rail integration study and legal and institutional framework analysis, among others.
According to its website, the USTDA’s function is to help companies “create US jobs through the export of US goods and services to critical infrastructure projects in emerging economies.”
The US agency’s engagements are intended to “counter unfair foreign competition, and generate results that make America safer, stronger and more prosperous.”
Transportation Secretary Vince Dizon said the SCMB Railway is expected to solve port traffic and congestion in the Port of Manila. It is also meant to ensure the timely movement of products to and from adjacent major transport hubs
This 26.9-kilometer (km) project will connect Subic Port to Clark International Airport, Port of Manila and Port of Batangas.
“This project underscores the US-Philippines alliance’s vital role in maintaining a free and open Indo-Pacific region,” said Thomas Hardy, Acting Director of USTDA.
“By supporting the development of the SCMB Railway, we are ensuring that key infrastructure will flourish, increasing economic cooperation to develop an essential trading route that will mutually benefit American and Philippine citizens,” Hardy said.
“Our partnership with the Philippines exemplifies the strength of American leadership in the Indo-Pacific and underscores our commitment to advancing our shared interests,” he added.
The DOTr is also working with Swedfund, the Swedish government’s development finance institution, for a $1.2-million grant to further support the project.
The SCMB railway project is one of the government’s major infrastructure initiatives in the pipeline, which include the Metro Manila Subway and North-South Commuter Railway (NSCR).
The 33-km underground railway project is designed to have 17 stations connecting Valenzuela City to Pasay City. It is expected to service over 519,000 passengers daily once operational.
NSCR, meanwhile, has 35 stations spanning 28 local government units from Pampanga to Laguna. It is expected to serve more than a million passengers daily.
