MANILA, Philippines – The Philippines, United States and Japan welcomed seven more countries who will join the Luzon Economic Corridor (LEC), to further accelerate investment and regional prosperity, the U.S. State Department announced on Monday.
According to the joint statement released by the State Department, the expansion of the LEC partnership include Australia, Denmark, France, Italy, Republic of Korea, Sweden, and the United Kingdom.
Launched in April 2024, the Luzon Economic Corridor is the first Partnership for Global Infrastructure and Investment (PGI) corridor in the Indo-Pacific, with the aim of enhancing connectivity between Subic Bay, Clark, Manila, and Batangas.
“Through coordinated investments in transport infrastructure, energy systems, digital connectivity, and advanced manufacturing supply chains, the LEC will create thousands of high-quality jobs and transform Luzon into a more prosperous and interconnected region,” the statement read.
Philippine Secretary of Finance and Co-Chair of the LEC Steering Committee Frederick D. Go, underscored the expansion of the LEC partnership, saying it demonstrates the power of collaboration among likeminded nations committed to transparency and shared prosperity.
“Together, we are building infrastructure that will improve daily life for millions of Filipinos and create new opportunities for businesses, industries, and communities in our partner countries and across the region,” Go said.
According to the joint statement, LEC partners share a commitment to a free and open Indo-Pacific, and pledge to promote fair and transparent economic development.
Partners are expected to contribute through technical assistance, financing, and facilitation of private sector investments, while actively participating in working groups focused on transport, energy, and digital infrastructure.
Australia is mobilizing investment in the LEC through Australia’s Manila Deal Team, reinforced by technical assistance under the Partnerships for Infrastructure program and a new Php1.9-billion (US$32.6-million) partnership with the Philippines on inclusive economic growth.
Denmark is contributing to the LEC by revitalizing Philippine shipbuilding, advancing green maritime innovation, and fostering investments, jobs, and sustainable industrial development. Working with government and the private sector, Denmark’s shipbuilding initiative aims to create 10,000 jobs.
France is strengthening connectivity in the LEC by financing 100 bridges through official development assistance, and industrial capacity building through a foreign direct investment project in the aeronautics sector.
Italy is contributing to the development of quality, resilient, and sustainable infrastructure by increasing its public financial support in order to facilitate private sector investment from Italian companies in the transport, semiconductors, and manufacturing sectors
The Republic of Korea is contributing to enhanced transport and digital connectivity, and sustained economic growth along the LEC, through Official Development Assistance and Public-Private Partnership initiatives, including a Php1.5billion (US$25.6million) grant to establish the National Cyber Security Center and the Ninoy Aquino International Airport modernization PPP Project.
Sweden is contributing to Luzon’s Subic-Clark-Manila-Batangas freight railway through a Php74-million (US$1.2 million) grant to fund 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 (US$6.8 billion) in export finance, and mobilizing capital towards infrastructure and energy projects.
“The expansion of the Luzon Economic Corridor partnership shows what we can accomplish when likeminded nations unite around strategic infrastructure and shared prosperity,” said U.S. Senior Advisor for Economic, Energy, and Business Affairs Ambassador Heather Variava.
“This initiative is creating real opportunities for U.S. business, our Philippine partners, and investors across the Indo-Pacific while countering exploitative infrastructure practices with a better alternative,” Variava added.
“This expanded partnership reflects our shared vision for quality infrastructure development that respects transparency, sustainability, and the rule of law,” said Ambassador of Japan to the Philippines Endo Kazuya.
“Together, we are building connectivity that will benefit generations of Filipinos and strengthen economic ties across the Indo-Pacific,” he added.
The LEC initiative represents unparalleled opportunities for domestic and international investors to participate in transformative projects that strengthen supply chains and enhance regional connectivity, the statement mentioned.
