Johannesburg – 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 governments of the US, Japan, and the Philippines have expanded the economic bloc to increase cooperation in the Indo-Pacific region.
“The expansion of the LEC partnership demonstrates the power of cooperation among like-minded nations committed to transparency and shared success,” Finance Secretary Frederick D. Go was quoted as saying.
The LEC is a tripartite agreement to improve the connectivity of Luzon's economic zones, especially Subic Bay, Clark, Metro Manila and Batangas.
Partner countries provide technical assistance, finance, while facilitating private sector investment. They also participate in working groups on transportation, 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 for inclusive economic growth, as well as technical assistance under the Infrastructure Cooperation Program.
On the other hand, Denmark is looking to invest in 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 projects in the aviation industry.
South Korea has expressed its interest in pushing for ODA programs that seek to improve transportation, digital communication, and further economic growth along the LEC.
Its support includes a P1.5 billion grant to establish a National Cyber Security Center and to upgrade the Ninoy Aquino International Airport.
Meanwhile, the UK is running its full Growth and Investment LEC programme. It will provide technical assistance, P411 billion in exports, and mobilize funds for infrastructure and energy projects.
Italy said it is increasing its public finance support to facilitate private sector investment from Italian companies in the transport, semiconductors and manufacturing sectors.
Sweden, on the other hand, is providing a grant of P74 million to fund feasibility studies on signaling systems and operational models.
“This move creates real opportunities for US business, our Philippine partners, and investors throughout the Indo-Pacific while countering exploitative infrastructure practices with a better alternative,” said Heather Variava, US senior adviser on economic, energy, and business affairs.
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 investment in key industries such as transportation infrastructure, advanced manufacturing, energy, and digital communications. – Beatriz Marie D. Cruz
