Philippines looks to diversify project funding beyond China amid maritime row

Manila backed out of the Belt and Road Initiative last year after Beijing became unresponsive to its funding requests for railway projects

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Philippine President Ferdinand Marcos Jnr, US President Joe Biden and Japanese PM Fumio Kishida pose in the White House in Washington on April 11. Photo: AP

Published: 3:30pm, 4 Aug 2024Updated: 3:33pm, 4 Aug 2024

The Philippines is looking to diversify its infrastructure funding through allies such as the US and Japan after what analysts say is a withdrawal of several China-backed projects in the Southeast Asian country over geopolitical reasons.

On July 26, the Philippine transport department said funding for a feasibility study on the Subic-Clark-Manila-Batangas railway was in the works. The railway project is a joint initiative by the Philippines, Japan, the United States, Sweden and the Asian Development Bank.

The 250km project is part of the proposed Luzon Economic Corridor, announced during the trilateral leaders’ summit in April attended by Philippine President Ferdinand Marcos Jnr, US President Joe Biden and Japan Prime Minister Fumio Kishida.

Once completed, the project will run along and connect four cities on Luzon island, linking three main ports and two international airports.

The Subic-Clark-Manila-Batangas railway project is an updated initiative of the original Subic-Clark railway project that was initially backed by Chinese investments.

Nikkei Asia reported on Monday that officials from the Philippines’ Bases Conversion and Development Authority, the agency overseeing redevelopment projects in former US military bases such as Subic and Clark, were in Tokyo earlier in July to seek funds for the latest railway project, as well as other developments in the former bases.