The United States’ development finance agency is planning to open a regional office in the Philippines. This is expected to boost private investments in the country, particularly in important areas such as infrastructure, critical minerals, and renewable energy.
“We are thrilled to announce the opening of our new office in Manila.” In a few months, we will be going to this place. Our ongoing presence here will help us coordinate more effectively. Together with all of you, we will be able to connect with the private sector and increase our projects in the Philippines,” said Nisha Biswal, deputy CEO of the US International Development Finance Corp. (DFC), at the recent 6th Indo-Pacific Business Forum in Manila.
DFC collaborates with private companies on projects that have a significant impact. These projects create jobs, boost the economy, improve access to important services, and enhance trade and regional connections.
Google’s most recent project in the Philippines involves providing a $20-million loan to property company Lhoopa Inc. This loan will be used to support the development of affordable housing throughout the country. DFC has now made a total commitment of $80 million in the Philippines with this loan.
Amos Hochstein, a senior adviser to the president on energy and investment, stated that the creation of the local DFC office is strong evidence of the US government’s support for important projects in the country, like the Luzon Economic Corridor which will be carried out with assistance from Japan.
“We, the representatives of various agencies in the United States, will play a crucial role in making this a reality,” said Hochstein. “We are working to involve all parts of the US government in this effort.”
Priority Projects
After the main meeting of the Indo-Pacific Business Forum, where they discussed how the US government helps stimulate investments in partner countries, the business leaders had a private discussion. During this discussion, they formed a steering committee consisting of three parties. This committee will be responsible for overseeing the development of the prosperity corridor.
The Philippine government has identified several projects as part of the Luzon Economic Corridor. These projects include the Subic-Clark Railway Project, which is worth P50 billion, the Phase 1 and 2 expansion projects of Clark International Airport, which are worth P12.8 billion, and the Clark National Food Hub, which is worth P8.7 billion.
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Frederick Go, who is the Special Assistant to the President for Investment and Economic Affairs, led a team from the Philippines. They presented a list of 28 important projects in areas like infrastructure, electronics, food production, storage, and renewable energy. These projects will be included in the corridor.
Japan’s Support
The steering committee was formed because the Trilateral Leaders made a commitment in April to develop the Luzon Economic Corridor. This is part of the Partnership for Global Infrastructure and Investment Indo-Pacific Economic Framework Investment Accelerator.
Japan, which is another important friend of the Philippines, has also stated its intention to support the development of the planned corridor.
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