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The European Union and Spain formally joined the Luzon Economic Corridor initiative, which aims to advance infrastructure and investments in key sectors along the corridor connecting Subic, Clark, Manila, and Batangas
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The two new partners, announced during the inaugural LEC Investors Forum on September 10, brings the total LEC circle to 13 economies, including the Philippines
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The EU is aligning its Global Gateway programs in the Philippines with LEC to support green and circular development, renewable energy, energy efficiency, secure digital connectivity, innovation and skills development
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Spain stands “ready to advance the corridor’s goals” through technical assistance, private sector partnership, and mobilization of its financing protocol recently signed with the Philippines
The European Union (EU) and Spain have formally joined the Luzon Economic Corridor (LEC) initiative, which aims to advance infrastructure and investments in key sectors along the corridor connecting Subic, Clark, Manila, and Batangas.
The two new partners, announced during the inaugural LEC Investors Forum on September 10, brings the total LEC circle to 13 economies, including the Philippines.
Launched in 2024 as the first Indo-Pacific corridor under the United States-led Partnership for Global Infrastructure and Investment, LEC is a trilateral initiative of the U.S., Japan, and the Philippines that focuses investment in transportation and logistics, energy, digital infrastructure, and advanced manufacturing along the economic corridor stretching from Subic Bay and Clark through Manila to Batangas – a region representing 50% of the Philippines’ gross domestic product.
LEC has since expanded to include Australia, Canada, Denmark, France, Italy, South Korea, Sweden and the United Kingdom as partner nations.
Finance secretary Frederick Go welcomed the inclusion of Spain and the EU, saying that together with the other partners, “we can do many things.”
“We are working toward tangible results: better infrastructure, stronger connectivity and supply chains, more investment, more jobs, and greater opportunities for the Filipino people,” Go said.
The EU is aligning its EU Global Gateway programs in the Philippines with LEC to support green and circular development, renewable energy, energy efficiency, secure digital connectivity, innovation and skills development. It includes the €60 million Green Economy Programme and a €20 million Digital Economy Package.
Spain, meanwhile, stands “ready to advance the corridor’s goals” through technical assistance, private sector partnership, and mobilization of its financing protocol recently signed with the Philippines, according to Spain Ambassador to the Philippines Miguel Utray Delgado.
Last June, the Philippines and Spain signed the Framework Protocol on Financial and Technical Cooperation, opening doors for the Asian country to access concessional financing and technical expertise from Spain.
“This protocol will help to unlock additional financing so Spanish companies can help implement projects,” Delgado said.
New investments, agreements
Aside from the new partner economies, several new investments and agreements were announced during the LEC Investors Forum, which aim to advance investment and commercial partnerships across transportation, energy, digital infrastructure and advanced manufacturing.
Among these were:
- $60 million Philippines Energy Threshold Program between the U.S. and the Philippines to support modernization of the country’s energy sector;
- U.S. Trade and Development Agency (USTDA) and Subic Drydock Corp. (SDC) agreement to fund the feasibility study on the expansion of SDC’s facility in Subic; and
- USTDA agreement with Philippines ICT company ComClark Network and Technology Corp. to fund a pilot project to assess viability for a nationwide network of paid public Wi-Fi access points.
READ: US delegation scouts Subic freeport for LEC-aligned trade, investments
The Investors Forum also provided a curated list of ongoing/planned projects where the private sector can participate as either investor/developer, locator/business, and supplier. These projects are grouped under LEC’s four key sectors: energy/water, transport and logistics, digital connectivity, and advanced manufacturing.
Some of the projects, particularly in the transport/logistics sector, include the Subic-Clark-Manila-Batangas Railway, Clark AeroDistrict Cargo City, Sangley Point International Airport, and Redevelopment of Boton Wharf in Subic.—Roumina Pablo
READ: PortCalls 3-part series on on the Pax Silica Initiative and Luzon Economic Corridor
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