Manila: The expansion of the Luzon Economic Corridor (LEC) received additional support from more countries on Monday, ensuring sustainable economic opportunities across the Indo-Pacific.
According to Philippines News Agency, the Philippine government, along with that of the United States and Japan, announced new partners in the LEC expansion, namely Australia, Denmark, France, Italy, Republic of Korea, Sweden, and the United Kingdom. The LEC, which was announced in April 2024 as the first Partnership for Global Infrastructure and Investment (PGI) corridor in the Indo-Pacific, aims to enhance connectivity from Subic Bay, Clark, Manila, and Batangas.
The statement outlined that coordinated investments in transport infrastructure, energy systems, digital connectivity, and advanced manufacturing supply chains will generate numerous high-quality jobs and transform Luzon into a more prosperous and interconnected region. Philippine Secretary of Finance Frederick Go emphasized the significance of collaboration among like-minded nations dedicated to transparency and shared prosperity.
Go, who co-chairs the LEC Steering Committee, highlighted the infrastructure development aimed at improving daily life for millions of Filipinos and creating new opportunities for businesses, industries, and communities within partner countries and the broader region. LEC partners have committed to providing technical assistance, financing, and promoting private sector investments while participating in working groups focused on transport, energy, and digital infrastructure.
Under the agreement, Australia plans to offer technical assistance through its Manila Deal Team under the Partnerships for Infrastructure program, alongside a new PHP1.9-billion (USD32.6-million) partnership with the Philippines aimed at inclusive economic growth. Denmark will contribute to revitalizing the Philippines' shipbuilding sector by advancing green maritime innovation and fostering investments, jobs, and sustainable industrial development.
France will aid in strengthening connectivity along the corridor by financing 100 bridges through official development assistance and supporting industrial capacity building through a foreign direct investment project in the aeronautics sector. Italy's role involves developing quality, resilient, and sustainable infrastructure by increasing public financial support to facilitate private sector investment from Italian companies in transport, semiconductors, and manufacturing sectors.
South Korea will contribute to enhanced transport and digital connectivity and sustained economic growth along the LEC through Official Development Assistance and Public-Private Partnership initiatives, including a PHP1.5 billion (USD25.6 million) grant for establishing the National Cyber Security Center and the Ninoy Aquino International Airport modernization PPP Project. Sweden's involvement includes contributing to Luzon's Subic-Clark-Manila-Batangas freight railway through a PHP74-million (USD1.2 million) grant for a feasibility study on signaling systems and operational models.
The United Kingdom is deploying its full Growth and Investment Partnerships (GIP+) toolkit in the LEC, providing technical assistance, PHP411 billion (USD6.8 billion) in export finance, and mobilizing capital towards infrastructure and energy projects. U.S. Senior Advisor for Economic, Energy, and Business Affairs Ambassador Heather Variava highlighted the partnership's potential to create real opportunities for U.S. businesses, Philippine partners, and investors across the Indo-Pacific, providing an alternative to exploitative infrastructure practices.
Ambassador of Japan to the Philippines Endo Kazuya expressed that the expanded partnership reflects a shared vision for quality infrastructure development that respects transparency, sustainability, and the rule of law, aiming to build connectivity that will benefit future generations of Filipinos and strengthen economic ties across the Indo-Pacific.
