Sweden Provides $1.3M Grant for Subic-Clark-Manila-Batangas Railway

MANILA, Philippines — The government of Sweden, through its development finance institution Swedfund International, has extended a grant worth approximately $1.3 million (P76 million) to the Philippines to fund a crucial study for the Subic-Clark-Manila-Batangas (SCMB) Freight Railway project.

The grant agreement, signed between Swedfund and the Philippine Department of Transportation (DOTr), will specifically finance a feasibility study on the railway’s signaling systems and operational models.

The SCMB Railway, regarded as a catalyst for Luzon’s economic transformation, is the anchor infrastructure project of the Luzon Economic Corridor (LEC). By connecting Subic Bay, Clark International Airport, the Port of Manila, and the Port of Batangas, the railway is expected to greatly enhance regional connectivity, improve supply chains, and stimulate economic growth across the corridor.

During the presentation of the agreement at Malacañan Palace, Special Assistant to the President for Investment and Economic Affairs (SAPIEA) Frederick Go said the partnership supports the administration’s goals.

“This partnership between the Philippines and Sweden advances the President’s vision of developing globally competitive logistics infrastructure that will drive investment and inclusive growth,” Go stated. He added that the railway will “modernize freight transport, boost trade efficiency, and create jobs across the region.”

Swedish Ambassador to the Philippines Anna Ferry emphasized the collaborative nature of the support. “We are proud to support the Philippines’ development goals with Swedish technology and expertise in transportation and provide a boost for sustainable growth and opportunities,” Ferry said.

Acting Transportation Secretary Giovanni Lopez expressed gratitude for the grant, highlighting the project’s transformative potential.

“This project will strengthen the country’s logistics and supply chain by providing a dedicated freight transport system,” Lopez said. “Once realized, it will reduce logistics costs, improve trade efficiency, and advance the administration’s goal of building a more competitive and connected economy.”

The Swedish grant complements funding from other international partners. The United States Trade and Development Agency (USTDA) has also provided grants for parallel studies on transport modeling and port-rail integration, while the Asian Development Bank (ADB) is set to oversee the procurement of consultants for the main feasibility study.