DoTr admits funding challenges for Mindanao Railway Project
DAVAO CITY — The country’s top transportation official admitted here on Tuesday that the Mindanao Railway Project (MRP) is faced with funding challenges after China withdrew its loan deal with the Philippines last year.
Addressing the Bagong Pilipinas Town Hall Meetings of the Railway Sector, Department of Transportation (DoTr) Secretary Jaime J. Bautista said the government is seeking alternative funders for the MRP through the Department of Finance (DoF).
“The loan was terminated during the previous government and I think one of the solutions is for us to be able to solve and look for other possible funders,” he said.
Mr. Bautista mentioned ongoing efforts to collaborate with DoF and explore Official Development Assistance (ODA) possibilities from various Asian and ASEAN governments.
Undersecretary Garry de Guzman of the Department of Human Settlements and Urban Development (DHSUD) also mentioned the termination of negotiations with China to facilitate progress.
“As you know this negotiation with China has been dragging on for years and so in a negotiation on a government-to-government basis, we cannot just negotiate with other governments on the basis of diplomatic ties with them before we open up negotiation with the others, we have to formally terminate. Precisely we want to move forward,” he said.
Meanwhile, DoTr Assistant Secretary Jorjette Aquino outlined milestones achieved in Phase 1 of the MRP, specifically the Tagum-Davao-Digos (TDD) segment, covering 100 kilometers with eight railway stations and two depots.
The DoTr official said the project advancements, including the establishment of the Tagumpay Train Village in Tagum City, a resettlement site offering 248 housing units for affected families.
With an estimated total cost of approximately P81.7 billion, the project aims to reduce travel time from three hours to an hour, benefiting around 1,222 daily commuters.
Mr. De Guzman revealed plans to update the feasibility study on the MRP and forward it to the National Economic and Development Authority (NEDA).
There is also a move to consider a potential transition from a single-track to a two-track railway and explore the operation of electric trains, according to Mr. Bautista.
For the Right of Way (ROW) activities and land acquisition, a fund of P1.6 billion has been downloaded and DoTr has obligated P4.6 billion.
Mr. De Guzman stressed that the MRP remains a crucial component of the government’s infrastructure flagship projects, with ongoing efforts to secure funding and advance project implementation across key regions in Mindanao. — Maya M. Padillo