US expects Luzon corridor projects to outlast Marcos

The US expects Luzon Economic Corridor (LEC) investments to continue beyond the Marcos administration, saying long-term infrastructure projects should survive political transitions and keep delivering economic benefits.

Ambassador Heather Variava, senior adviser at the US State Department’s Bureau of Economic, Energy and Business Affairs, said the LEC and Pax Silica are separate initiatives, although they are connected through investments in infrastructure, technology, and industry.

“The Luzon Economic Corridor…is an initiative that is separate from Pax Silica, although they are indeed connected,” Variava said at a press conference Thursday.

She made the distinction amid concerns that Pax Silica projects, particularly around New Clark City, could displace communities or put pressure on existing resources.

Variava said US-backed projects are being developed under Philippine and US laws and are intended to add capacity rather than displace existing resources.

“Any investments or activities we undertake are designed to be additive,” she said, pointing to additional power, water, and infrastructure that could support new investments and jobs.

LEC projects also include cold-storage facilities to strengthen food distribution and secure digital infrastructure to protect information.

Asked whether the corridor could remain viable after the 2028 presidential election, Variava pointed to projects that have continued across Philippine administrations.

She cited a Subic Bay transaction that started under former President Rodrigo Duterte and continued under President Ferdinand Marcos Jr.

The broader relationship also provides a long-term foundation, she said, citing the two countries’ 80-year diplomatic ties and US companies that have operated in the Philippines for more than a century.

“We do see longevity running through both the corridor initiative and many of our investments here in the Philippines,” Variava said.

For investors, the test is whether projects can move beyond government announcements and survive changes in leadership. Infrastructure with multiyear construction and investment cycles will require policy continuity well beyond 2028.

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