ROW process for Mindanao railway underway

MANILA, Philippines — The government is focused on securing right-of-way (ROW) for the Mindanao Railway project for the meantime as it has yet to find a new funding source for the infrastructure.

Transportation Secretary Jaime Bautista yesterday said the government is committed to finishing the project even after it wrote off China as the financing source.

He said the Department of Transportation (DOTr) is acquiring the land for the first phase of the railway, which will run between Tagum and Digos via Davao City.

“We decided to pursue Phase 1 of the Mindanao Railway project despite the withdrawal of prior funding commitment from the government of China. While looking for funding sources, various pre-construction activities show we are not dropping the project,” Bautista said.

“In fact, the Tagum Train Village is scheduled for turnover for its future residents in the coming months. Livelihood programs are also being prepared for affected families,” he added.

The DOTr wants to clear the ROW for the project to ensure that construction activities can push through as soon as the government secures a new funder.

For that matter, Bautista said the DOTr is working with the Department of Finance in negotiating with foreign governments and multilateral lenders interested in bankrolling the first rail system in Mindanao.

In 2023, the government withdrew its application for Chinese loans for three railways, estimated to cost at least P307 billion, citing lack of progress in negotiations.

One of the projects stalled as a result of this withdrawal is the Mindanao Railway Phase 1, which requires P81.6 billion. The project will span 100.2 kilometers made up of eight stations across Mindanao.

Upon its completion, the Mindanao Railway Phase 1 is expected to serve around 122,000 passengers a day and reduce the travel time between Tagum and Digos to about an hour, from three hours at present. It will also lay the foundation for the general rail line that will cover Mindanao.

The Mindanao Railway project seeks to construct a 1,544-kilometer rail system across the island, boosting trade and travel to the benefit of the local economy.

Recently, the DOTr has hired the joint venture of Deloitte Touche Tohmatsu India LLP and ASA Law to do the pre-feasibility study for the Mindanao Railway Phase 3.