Luzon Corridor Development Initiative Steams Ahead

The inaugural Luzon Corridor Steering Committee meeting, to drive infrastructure investment and development along the Corridor met on the sidelines of the Indo-Pacific Business Forum in Manila last week.

Luzon Corridor is  the first project of the U.S.-initiated Partnership for Global Infrastructure and Investment in the Indo-Pacific (PGI), which is touted as an alternative to China’s Belt and Road Initiative and Maritime Silk Road.

U.S. Senior Advisor to the President for Energy and Investment Amos Hochstein, along with Acting Special Coordinator for the PGI  Helaina Matza, joined fellow co-chairs Philippine Senior Advisor to the President for Investment and Economic Affairs Frederick Go and Japan Ministry of Foreign Affairs Director-General for International Cooperation Bureau Ishizuki Hideo.

The Steering Committee aims to implement the Trilateral Leaders’ commitment in April to develop the Luzon Economic Corridor under the PGI Indo-Pacific Economic Framework (IPEF) Investment Accelerator.

The partners discussed priority sectors for engagement and reviewed potential projects and areas of interest, committing to future meetings on a quarterly basis.

The Luzon Economic Corridor is the first PGI economic corridor in the Indo-Pacific region. The Corridor will support connectivity among Subic Bay, Clark, Manila, and Batangas as well as "facilitate strategic, anchor investments within each hub in high-impact infrastructure projects, including rail, port modernization, agribusiness, and clean energy and semiconductor supply chains and deployments," according to a statement.

Subic Bay, abandoned by the US Navy in 1992 had been a Free Port Development zone.  In 2022 buyout firm Cerebrus Capital Management LP acquired the shipyards at Subic and the Philippine Navy has established a new naval base on the site.

The US-Philippine Enhanced Defense Cooperation Agreement (EDCA) allows the United States to rotate troops into the Philippines for extended stays and allows the United States to build and operate facilities on Philippine bases for both American and Philippine forces, while not establishing "permanent" military bases.

China has funded mega projects in Luzon in recent years like the ongoing construction of Kaliwa Dam, intended to boost Metro Manila’s water and power supply, and several dams in the Cordillera Region in north Luzon.