Luzon Economic Corridor Welcomes EU, Spain to Boost Investments

MANILA, Philippines — The Luzon Economic Corridor (LEC) initiative has welcomed the European Union (EU) and Spain as its newest partners. Under the LEC’s initial curated list of 38 projects, over $20 billion worth of investment opportunities are available for private sector participation. “We are very pleased to welcome the EU and Spain to the partnership. 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. This is a strong vote of confidence in the Philippines and in the opportunities that our economy offers,” Finance Secretary Frederick Go said during the inaugural LEC Investment Forum yesterday. Launched in April 2024 by the Philippines, United States and Japan, the LEC aims to accelerate strategic infrastructure investments and strengthen connectivity and supply chains across Luzon’s growth centers covering Subic, Clark, Manila and Batangas. The initiative also seeks to strengthen the Philippines’ position as a competitive investment and production hub. As the initiative gained support, it welcomed additional partners such as Australia, Canada, Denmark, France, Italy, South Korea, Sweden and the United Kingdom earlier this year. With the latest addition of the EU and Spain, projects under the LEC can benefit from a wider pool of expertise, technology and financing. EU Ambassador Massimo Santoro said the bloc, a major trade and investment partner of the Philippines, is ready to advance investment opportunities under the initiative while promoting good governance. The EU is aligning its €60-million (around $69.84 million) Green Economy Program and €20-million (around $23.28 million) Digital Economy Package with the LEC priorities. It is also looking to support green and circular development, renewable energy and energy efficiency, secure digital connectivity, innovation and skills development. Meanwhile, Spain will help advance potential LEC projects in railways, modular infrastructure, aviation, shipbuilding, air-navigation management and renewable energy connectivity. “We stand ready to advance the corridor’s goals through technical assistance, private sector partnership and finance mobilized under the financial protocol recently signed with the Philippines. This protocol will help to unlock additional financing so Spanish companies can help implement projects,” Spain’s Ambassador Miguel Utray Delgado said. The inaugural LEC Investment Forum was held to showcase priority projects, encourage partnerships and advance investment opportunities along the corridor. The initial LEC project list made available yesterday covers projects across four key sectors: energy or water, transport or logistics, digital connectivity and advanced manufacturing. Of the 38 projects, 18 have an estimated investment opportunity value. These projects include the Subic Clark Natural Gas Ecosystem, Sangley Point International Airport and the North-South Commuter Railway operations and maintenance. The private sector can participate in the projects as an investor, locator or supplier.