The government of Sweden, through its Swedfund International, is extending a grant financing to advance the flagship Subic-Clark-Manila-Batangas (SCMB) railway, a major component of the ambitious Luzon Economic Corridor (LEC) project of the Marcos administration.
Special Assistant to the President for Investment and Economic Affairs Frederick D. Go said the Swedfund extended a grant of 12 million SEK or around USD1.3 million to fund a feasibility study on signaling systems and operational models for the SCMB railway – the anchor infrastructure initiative of the LEC that will connect the major ports of Subic, Manila, and Batangas, strengthening logistics and trade across Luzon.
The agreement was signed between the Government of Sweden, through Swedfund International, and the Department of Transportation (DOTr).
“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,” said in his keynote address during the official presentation of the signed agreement at the Malacañan Palace on Wednesday, October 22.
Secretary Go highlighted that the SCMB Railway is envisioned to be a transformative project that will modernize freight transport, boost trade efficiency, and create jobs across the region.
Joining Secretary Go during the presentation were Sweden’s Ministry of Foreign Affairs Department Head for Asia, the Pacific and Latin America Daniel Wolvén, Swedish Ambassador to the Philippines Anna Ferry, Sweden’s Trade Commissioner to the Philippines Johan Lennefalk, and DOTr officials led by Acting Secretary Giovanni Lopez, along with representatives from the Department of Finance and the Department of Foreign Affairs.
For his part, Ambassador Ferry said the grant would help strengthen cooperation between Sweden and the Philippines. “This additional agreement with the Department of Transportation is a remarkable example of synergies and cooperation between public and private efforts. 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,” she said.
Acting Transportation Secretary Giovanni Lopez expressed the government’s gratitude and reiterated the importance of Sweden’s support in realizing the SCMB Railway Project. “This project will strengthen the country’s logistics and supply chain by providing a dedicated freight transport system connecting major ports with industrial and economic zones. Once realized, it will reduce logistics costs, improve trade efficiency, and advance the administration’s goal of building a more competitive and connected economy,” he added.
This Swedish grant complements the June 2025 funding from the U.S. Trade and Development Agency, which supports parallel studies on transport modeling, port–rail integration, and institutional planning. The Asian Development Bank will oversee procurement of the consultant for the main feasibility study.
The Luzon Economic Corridor is part of the trilateral cooperation among the Philippines, Japan, and the United States, aimed at enhancing infrastructure connectivity, promoting sustainable industrial development, and driving inclusive economic growth across key growth centers in Luzon.
