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MinDA: Mindanao railway project open for private investment

by Nova Mae Francas

THE MINDANAO Development Authority (MinDA) continues to explore private-sector investment for the Mindanao Railway Project (MRP).

MinDA Secretary Leo Tereso Magno said engaging capable private-sector partners is one way to explore viable ways to move the long-awaited project forward.

“We are scaling up our efforts to invite private partners to invest in the Mindanao railway,” Magno said on Wednesday during the Habi at Kape media forum.

Magno reported that the agency met with seven firms to explore partnerships, including firms from India, Canada, and the United States.

On Oct. 9, Magno met with representatives of China Civil Engineering Construction Corporation (CCECC) at the Westin Hotel in Ortigas.

CCECC was represented by Philippine Branch general manager Li Linjiang and marketing head Zhang Enhong.

Magno encouraged CCECC to identify a segment it is interested in and explore submitting an unsolicited proposal. 

MinDA offered help in coordinating with concerned government agencies, including the agency’s railway team in Davao, to move the discussions forward.

Magno said the MRP is divided into 13 segments. Feasibility studies for Segments 1 and 3 are nearing completion, while some remain open to unsolicited proposals from private investors.

He added that Phase 1 amounts to more or less P81 billion, while Phase 3 is around P100 billion.

According to the Public Private Partnership Center of the Philippines, the third phase of the MRP is currently being pursued as a PPP project under a solicited bidding process.

MRP Phase 3 is a 61-km intercity passenger and cargo railway system designed to connect the industrial and commercial centers of Cagayan de Oro, including Laguindingan International Airport and the Mindanao Container Port.

“It is very important that we look at Mindanao railway as one that will really spur development in Mindanao, makakatulog sa value chain, and transport from farms to market,” Magno said.

The proposed Mindanao Railway Project (MRP) is one of the major projects of the National Philippine Railway infrastructure program. 

The 1,544 kilometer Mindanao-wide Railway System will connect cities like Davao, General Santos, Cagayan de Oro, Iligan, Cotabato, Zamboanga, Butuan, Surigao, and Malaybalay. 

The first phase of the MRP is the Tagum-Davao-Digos (TDD) segment, which is 100.2 kilometers long and covers six (6) locations in the Provinces of Davao del Norte and Davao del Sur; from north to south, these are: (1) Tagum City, (2) Carmen Municipality, (3) Panabo City, (4) Davao City, (5) Sta. Cruz Municipality, and (6) Digos City. 

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