US gov’t increases grant for freight railway study

The United States has increased its support for the country’s infrastructure development, approving a significant funding boost for the pre-feasibility study of the Subic-Clark-Manila-Batangas Freight Railway project.

According to Secretary Frederick Go of the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA), the US Trade and Development Agency (USTDA) had raised its study grant from $2.5 million to $3.8 million.

“This milestone shows that Philippine-US economic ties are stronger than ever. The increased USTDA grant for the SCMB Rail pre-feasibility study reflects renewed investor confidence and will lead to more job opportunities along the corridor,” Go said in a statement.

The agency officially notified OSAPIEA and the Department of Transportation (DOTr) of the grant approval on April 28.

Go’s office said the increase in funding follows a competitive consultant selection and negotiation process.

The USTDA is set to announce the selected US consultant soon, pending final due diligence checks, it added.

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Meanwhile, the Philippine government is also working with Swedfund, the Swedish government’s development finance institution, on a separate $1.2-million grant to further support the project.

The OSAPIEA is also scheduled to meet with the DOTr and the US Embassy next week to finalize the signing of the beneficiary agreement for the freight railway project.

Further, the OSAPIEA said the funding boost marks a key step toward advancing the Luzon Economic Corridor, an initiative aimed at linking major economic hubs—Subic Bay, Clark, Manila, and Batangas—through high-impact infrastructure projects.