DOTr ‘overhauling’ Mindanao Railway Project

After dropping Chinese funding for the Mindanao Railway Project, the Department of Transportation (DOTr) is also overhauling the entire project to prioritize the development of a modern and environment-friendly railway system in the southern Philippines.

“We need to finalize the [feasibility] study. The Mindanao Railway’s original study proposed the use of diesel-powered trains… but, if we want to build a new system, we should adopt a more modern and environment-friendly technology,” Transportation Secretary Jaime Bautista said.

Asked if the DOTr will overhaul or revamp the feasibility study for the Mindanao Railway Project, Bautista said, “Yes, yes.”

“Our consultants are already doing it,” the Transportation chief said.

Bautista said the study will be completed within this administration.”

In February, the DOTr announced that it has begun pre-construction activities for the project, beginning with land acquisitions along the target alignment and identified resettlement sites for displaced residents.

Pre-construction works were commenced despite the ongoing search for the funding sources of the project.

Bautista said the DOTr is coordinating with the Department of Finance to look for potential funding.

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.”

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.

In 2021, it was indicated that the construction of the railway project’s Phase 1 will begin in the second quarter of 2022 and is targeted to be partially operable by the latter part of the year. 

The Phase 1 of the project has a length of 100.2 kilometers with over eight stations and an estimated project cost of P81.6 billion.

The Mindanao Railway was originally set to begin construction for its phase 1 or Tagum-Davao-Digos segment in January 2019. — BM, GMA Integrated News