JAPAN is open to studying possible funding support for the Mindanao Railway Project if formally requested by the Philippine government
Japanese Consul General in Davao Ono Hirotaka said during the Japan-Philippines Friendship Kadayawan Matsuri Night on Friday evening, September 18, 2026, at the Dusit Thani Davao, that as the long-delayed project continues to face funding uncertainty.
“Of course, we will study if the Philippine government asks for assistance. We are ready to study,” Ono said when asked about Japan’s possible role in financing the project.
He clarified, however, that there are no known discussions at his level, noting that such negotiations are handled by the Japanese Embassy in Manila.
Project left unfunded
The Mindanao Railway Project, one of the government’s flagship infrastructure programs, remains without a confirmed funding source, with transport officials acknowledging that financing is still “up in the air.”
Recent reports also indicated that the project was left without allocation in the proposed 2027 national budget, reflecting ongoing challenges in securing funds despite its priority status.
The project has struggled to move forward since the Philippines dropped China as its original funding partner, forcing the government to look for alternative lenders and financing mechanisms.
Despite funding gaps, government officials have maintained that the Mindanao Railway Project is not abandoned and continues to gain policy traction, including renewed studies and efforts to restructure the project to attract investors.
The Department of Transportation (DOTr) has said the railway remains part of its priority pipeline but cannot be fully programmed without secured financing, limiting timelines and implementation.
The railway is envisioned to span key cities across Mindanao, starting with the Tagum-Davao -Digos segment, as part of a larger network aimed at improving connectivity and economic activity across the island.
Cagayan de Oro 2nd District Rep. Rufus Rodriguez has proposed an additional P30 billion for the DOTr to cover unfunded projects.
Despite the lack of funding, preparatory activities have already started in Davao Region. At least 159 families have been relocated to give way for the project, indicating that right-of-way acquisition is underway even as full implementation remains pending.
The proposed 2027 national budget is still under deliberation in Congress, where lawmakers may introduce amendments, including additional funding for major infrastructure projects such as the Mindanao Railway.
Japan seen as possible partner
Japan has been identified by some policymakers as a potential fallback partner, given its strong track record in financing major railway and infrastructure projects in the Philippines.
However, Japan’s development agency, Jica, previously indicated it was not yet ready to fund the Mindanao railway, citing the need for further studies and clearer project details before any financing decision.
Ono’s latest statement signals openness but stops short of any commitment.
“We are always open to discuss,” he said.
Outlook uncertain
The consul general emphasized that Japan continues to support development efforts in Mindanao through infrastructure, planning, and peace-building initiatives.
These include the Davao City Bypass Road project, flood control systems in Matina, and urban planning support for Metro Davao, alongside decades-long involvement in the Mindanao peace process.
While Japan’s openness provides a potential pathway, the future of the Mindanao Railway Project remains uncertain, with funding still the main hurdle.
Until a financing partner is secured, officials have indicated that timelines for the project cannot be firmly established, leaving one of Mindanao’s most ambitious transport initiatives in limbo. RGL
