DOTr starts Mindanao Railway Project amid search for P81 billion funding

The Department of Transportation (DOTr) announced the start of pre-construction activities for the Mindanao Railway Project (MRP) in Davao City, Digos, and Tagum despite the ongoing search for project funding sources.

In a Tuesday statement, the DOTr said it had been coordinating with the Finance Department for alternative funding sources.

The DOTr would begin with Phase 1 of the MRP, which has a length of 100.2 kilometers with over eight stations and an estimated project cost of P81.6 billion.

“We decided to pursue Phase 1 of the MRP despite the withdrawal of the prior funding commitment from the government of China," said Transportation Secretary Jaime Bautista.

"While looking for funding sources, various pre-construction activities shows we are not dropping the project.”
 
The agency began land acquisitions along the target alignment and identified resettlement sites for displaced residents.

“The Tagum Train Village is scheduled for turnover to its future residents in the coming months. Livelihood programs are also being prepared for affected families,” the transport chief added.

On September 22, 2023, then-Finance Secretary Benjamin Diokno sent a letter to Chinese Ambassador Huang Xilian informing him that the country would no longer pursue loan financing for the MRP from China.

Bautista confirmed this during the German-Philippine Chambers of Commerce and Industry forum in October 2023, stating that the agency dropped the Chinese official development assistance (ODA) as a funding source for the MRP and two other railway projects as the negotiations had “no development.”

“Wala na (It’s out)… We’re now talking to other possible ODA partners,” Bautista said.

The agency is now aiming for ODA from other countries, as well as international financial institutions, as the possible new funding source for the projects. — DVM, GMA Integrated News