The investment will partly finance the 83-kilometer Cagayan-Cotabato phase of the project that will link the cities of Iligan, Cagayan de Oro, Gingoog, Marawi and Cotabato by 2008, the report said.
The project, estimated to cost $520 million, is expected to benefit 60,000 to 90,000 commuters daily in the Iligan-Cagayan de Oro "industrial corridor."
Transportation Undersecretary Guiling Mamondiong said Germany will invest 220 million euros (P15.4 billion) this year for the railway’s electronics and mechanicals.
Through German technology company Siemens, it will also provide 12 trains with speeds of 80 to 150 kilometers per hour. It will also put up ticketing, signaling and communication systems, the report said.
Saudi Arabia will also lend $40 million and donate another $10 million, or a total of P2.705 billion, for the project.
Mamondiong said the government will also seek funding from Kuwait, the United Arab Emirates, Qatar, Oman, Libya, Brunei and Thailand, which will do the feasibility study on the railway. Civil works will start in 2006. The project is scheduled for completion in 2008. — AFP