EU, Spain back Luzon Economic Corridor as partners expand

MANILA, Philippines — Spain and the broader European Union (EU) bloc have backed the Philippines’ Luzon Economic Corridor (LEC), becoming the latest partners in an initiative aimed at channeling more investments into the Subic-Clark-Manila-Batangas growth belt. Their entry expands the partnership—which began in 2024 as a trilateral initiative among the Philippines, the United States and Japan—to 13 members. Welcoming the new partners on Thursday at the inaugural LEC Investment Forum, Finance Secretary Frederick Go said the initiative intends to tap the expertise and resources of the EU and Spain to advance infrastructure projects planned along the corridor. “Their participation brings additional expertise, technology, capital and global business networks that can help accelerate investments and develop the infrastructure to support the Philippines’ growth,” said Go, who chairs the LEC and serves as the country’s investment czar. “This is a strong vote of confidence in the Philippines and in the opportunities that our economy offers,” he added. Apart from about 600 local and foreign business executives, the forum held at Bonifacio Global City (BGC) in Taguig was attended by President Ferdinand Marcos Jr., US Ambassador to the Philippines Lee Lipton and US Trade and Development Agency Deputy Director Thomas Hardy, among others. Like the eight other countries that joined the LEC initiative in May, Spain and the EU pledged financial and technical support for projects along the corridor. The EU is aligning its 60-million-euro Green Economy Program and 20-million-euro Digital Economy Package with LEC priorities. This funding is expected to support green and circular development, renewable energy and energy efficiency, secure digital connectivity, innovation and skills development. For its part, Spain will bring public and private sector expertise to potential LEC projects involving railways, modular infrastructure, aviation, shipbuilding, air-navigation management and renewable-energy connectivity. Aside from Spain, individual European countries backing the LEC are Denmark, France, Italy, Sweden and the United Kingdom. Go said the expansion would build on the LEC’s vision that “multilateral economic cooperation can turn even the most ambitious undertakings into reality.” “The LEC is about building projects that generate jobs, strengthen our industries and create lasting economic value for the Philippines,” he added. Five paralegals, meanwhile, were arrested after tensions flared between protesters and police officers outside Grand Hyatt Manila where the LEC Investment Forum was held. More than 100 protesters from different progressive groups staged a lightning rally to voice their opposition to Pax Silica, one of the projects under the LEC. Inside, Marcos wooed international investors, industry leaders, project developers and government officials to invest in the country during the opening of the two-day inaugural forum. According to human rights group Karapatan, three paralegals were arrested during the police dispersal outside the hotel. They were Jona Yang, Kenneth Castor and Mara Peralta. At the police station, two other paralegals who had brought in legal counsel to assist those earlier arrested were also taken into custody. They were identified as Daya Juliano and RC Placido. Karapatan condemned the arrest, calling these “a clear violation of the people’s right to peaceful protest.” Southern Police District deputy director for operations Col. Robert Baesa said the five would be charged with illegal assembly, as they did not secure a permit to stage a rally in BGC. Police said at least 16 police officers were injured, while advocacy groups said at least 27 protesters were hurt during the scuffle. The Philippines has designated a 1,620-hectare “economic security zone” in New Clark City, Capas, Tarlac, as the proposed location of an artificial intelligence and advanced manufacturing hub under the US-led Pax Silica initiative. Critics of the project, however, claimed that the deal would harm the environment, cause water scarcity in different parts of Luzon and displace indigenous peoples from their ancestral lands and farmers from their communities. The government, for its part, assured affected localities the framework agreement to be finalized by November will offer safeguards for stakeholders. It also cited the P180 billion in total revenues to be generated from Pax Silica yearly, along with almost 200,000 jobs for Filipinos, should the hub become fully operational after a decade. “Build your next enterprise in the Philippines. Bring your capital, technology, your expertise. Develop Filipino talent and local suppliers. Form lasting partnerships with our businesses and communities,” the President said in his speech. “The Philippines is ready. Come and build with us. Invest in the Filipino. Place your trust in the Philippines,” he added. — With a report from Dexter Cabalza /das