Luzon Economic Corridor admits more partners
THE LUZON Economic Corridor (LEC) partnership has been expanded to include Australia, Denmark, France, Italy, South Korea, Sweden, and the United Kingdom, the US Embassy in the Philippines said on Monday.
In a statement, the embassy said the US, Japan, and Philippine governments expanded the economic bloc to boost cooperation in the Indo-Pacific region.
“The expansion of the LEC partnership demonstrates the power of collaboration among like-minded nations committed to transparency and shared prosperity,” Finance Secretary Frederick D. Go was quoted as saying.
The LEC is a trilateral agreement to improve the connectivity of Luzon’s economic areas, primarily Subic Bay, Clark, Metro Manila and Batangas.
Partner countries provide technical assistance, financing, while facilitating private sector investment. They also participate in working groups on transport, energy, and digital infrastructure.
As a participant in the LEC, Australia is mobilizing investment through its Manila Deal Team. It is pushing for a P1.9-billion partnership with the Philippines on inclusive economic growth, as well as technical assistance under the Partnerships for Infrastructure Program.
For its part, Denmark is looking to invest in the Philippine shipbuilding and create 10,000 jobs.
France will provide official development assistance (ODA) to finance 100 bridges, the US Embassy said. It will also focus on building industrial capacity through a project in the aeronautics industry.
South Korea expressed its interest in pushing for ODA initiatives that seek to enhance transport, digital connectivity, and sustained economic growth along the LEC.
Its support includes a P1.5-billion grant to establish the National Cyber Security Center and the modernization of the Ninoy Aquino International Airport.
Meanwhile, the UK is deploying its full Growth and Investment Partnerships program for the LEC. It will provide technical assistance, P411 billion in export finance, and mobilize capital towards infrastructure and energy projects.
Italy said it is increasing its public financial support in order to facilitate private sector investment from Italian companies in transport, semiconductors, and manufacturing sectors.
Sweden, meanwhile, is providing a P74-million grant to fund a feasibility study on signaling systems and operational models.
“This initiative is creating real opportunities for US business, our Philippine partners, and investors across the Indo-Pacific while countering exploitative infrastructure practices with a better alternative,” Heather Variava, US senior advisor for economic, energy, and business affairs ambassador, said.
Announced in 2024, the Luzon Economic Corridor is the first project undertaken by the US Partnership for Global Infrastructure and Investment in the Indo-Pacific.
It seeks to coordinate investments in key industries like transport infrastructure, advanced manufacturing, energy, and digital connectivity. — Beatriz Marie D. Cruz
