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The Government of Sweden, through Swedfund International, formalized its committed grant for a feasibility study on signaling systems and operational models for the Subic-Clark-Manila-Batangas Railway Project
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The Department of Transportation and Swedfund International signed the agreement on October 22
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The SCMB Railway aims to modernize freight transport, improve trade efficiency, and generate jobs
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The Swedish grant complements earlier funding from the US Trade and Development Agency and the Asian Development Bank
The Luzon Economic Corridor (LEC) received a major boost as the Government of Sweden formalized its support to the Subic-Clark-Manila-Batangas (SCMB) Railway Project through a grant from Swedfund International.
Swedfund’s assistance will finance a feasibility study on signaling systems and operational models for the SCMB Railway, a flagship infrastructure project designed to connect the ports of Subic, Manila, and Batangas.
The agreement was formalized between the Department of Transportation (DOTr) and Swedfund International in a ceremony held at Malacañan Palace on October 22.
“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 special assistant to the President for Investment and Economic Affairs Frederick Go in his keynote address.
Go added that the SCMB Railway is expected to modernize freight transport, improve trade efficiency, and generate employment opportunities across Luzon.
The Swedish grant complements the funding support provided in June 2025 by the US Trade and Development Agency (USTDA) for parallel studies on transport modeling, port-rail integration, and institutional planning.
The Asian Development Bank (ADB) will handle the procurement of consultants for the main feasibility study.
The LEC forms part of the trilateral cooperation among the Philippines, Japan, and the United States, which seeks to enhance infrastructure connectivity, promote sustainable industrial development, and drive inclusive economic growth across key growth centers in Luzon.
Present during the ceremony 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, and Sweden’s Trade Commissioner to the Philippines Johan Lennefalk, along with DOTr Acting Secretary Giovanni Lopez and representatives from the Departments of Finance and Foreign Affairs.
Ferry underscored the importance of the collaboration, saying, “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.”
Lopez thanked the Swedish government for its assistance to a key project that will enhance the Philippine’s logistics sector.
“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 said.
In a forum last September, DOTr assistant secretary for railways Eduardo Danilo Macabulos announced that ADB, USTDA, and Swedfund have committed US$8 million, $3.3 million, and $1.1 million, respectively, as funding for assistance for the SCMB Railway project.
READ: SCMB railway now under project development, feasibility study to start within the year
