THE Mindanao Railway Project (MRP) remains unfunded in the proposed 2027 national budget, even as preparatory work continues in parts of the Davao Region.
During a budget briefing, the Department of Transportation (DOTr) said only 30 out of 179 proposed projects were included in the 2027 National Expenditure Program (NEP).
“Out of the 179 projects, only 30 were included in the NEP,” the agency said on Thursday, September 3, 2026 during the presentation before the House Appropriations Committee.
Projects without allocation include the Mindanao Railway, MRT-4, and the Philippine National Railways South Long Haul.
The DOTr had proposed P624.48 billion for its projects, but only P237.35 billion was approved under the NEP.
Cagayan de Oro 2nd District Rep. Rufus Rodriguez has proposed an additional P30 billion for the DOTr to cover unfunded projects.
“I’d like to therefore propose… that we give an additional P30 billion… so that… we are able to also proceed with the implementation of the other projects,” Rodriguez said.
“There’s so many projects to be undertaken. Included there… will be the local counterpart for the funding they’re going to get [for the Mindanao Railway Project],” he added.
The Mindanao Railway also did not receive the proposed P8.53 billion allocation for 2027 intended for early works, including project management, detailed engineering activities, and initial civil works preparation.
The absence of funding effectively puts on hold key components such as procurement processes, contractor mobilization, and continuation of technical studies needed to advance the first phase of the project.
The project has been seeking new funding sources after the government withdrew from loan negotiations with China, prompting efforts to secure alternative financing from other countries and multilateral lenders.
Meanwhile, Acting Transportation Secretary Giovanni Lopez said the government has yet to find a development partner willing to back the project.
“For the entire Mindanao Rail, we are still looking for potential investors to fund this large project,” he said during the DOTr’s budget hearing on Thursday, September 3, 2026.
The first phase of the railway covers a 100-kilometer line connecting Tagum City, Davao City, and Digos City, with travel time expected to be reduced to about one hour.
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. RGL
