THE decade-long Mindanao Railway Project (MRP) will still proceed even without the full financial support and funding of the Chinese government.
After the Philippines dropped China as a funding source for the big-ticket infrastructure project and two other railway projects — the South Long-Haul railway and the Subic-Clark Railway — in 2022 due to Beijing's inability to move forward with the financial decision, Mindanao Development Authority (MinDA) Secretary Leo Tereso Magno said that they are considering enlisting Public-Private Partnership (PPP) to push through the project.
He also called on the national government to come up with feasible solutions in order not to halt the Mindanao railway which started its development in the late 2010s and was initiated by the Duterte administration through its “Build Build Build" program. However, MinDA did not receive its requested P5.4 billion during the 2025 proposed budget hearing for Mindanao on November 19, 2024.
“Yung Mindanao Railway Project, may lumabas na naman sa news na hindi itutuloy, sana naman ayusin ang pagbabalita. Hindi naman, ito [ay] itutuloy at nag-anunsyo na ang Department of Transportation and by December, (Several news reports said that the Mindanao Railway Project will not be continued. It will continue and the Department of Transportation announced that by December), we are bidding out in terms of reference… There are private groups who would like to partner with us in the government in constructing the railway,” Magno said at the sidelines of the 1st Mindanao Payment for Ecosystem Services (PES) Conference at D'Leonor Inland Resort & Adventure, Davao City on Wednesday, November 20, 2024.
Earlier this month, Transportation Secretary Jaime J. Bautista told national reporters during the Transport Con 2024 that although it is now leaning toward a PPP structure, the government is still exploring official development aid (ODA) for the project.
“We are also reviewing the feasibility study and the alignment of the rail line. We are talking to many (possible sources of funding) but we are not at liberty to divulge their identity yet. We need to do this project; that is why we are looking for other sources of funds. In fact, this project is also a possible PPP (Public-Private Partnership),” Bautista stated.
After China stopped funding the project, the government decided to re-examine the project's first phase with freight services included as part of its DOTr adjustments. At the same time, the transportation department redesigned the project's feasibility study to use electric or environmentally friendly trains.
Magno already announced that three international companies — two Korean and one Japanese companies — showed interest in pursuing the idea and they are eager to design and construct the project.
The Mindanao Railway is planned to be constructed in ten phases with a total track of 2,278 kilometers (1,415 miles) to be built for the system. The MRP initial phase is estimated to be worth around P83 billion. It will run to Digos City, Davao del Sur, from Tagum, Davao del Norte. It is anticipated to reduce the three-hour travel time between Tagum and Digos to one hour and carry 122,000 passengers daily. DEF
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