Mindanao railway project cost pegged at US$9 billion

DAVAO CITY – The 1,500-kilometer Mindanao Railway System will cost US$9 billion, Mindanao Development Authority (MinDA) said.

MinDA director for investment promotion and public affairs Romero Montenegro said that their consultants are currently finalizing the feasibility study on the railway system that will connect key areas of the island such as the cities of Cagayan de Oro, Iligan, Zamboanga, Butuan, Surigao, General Santos, and Davao.

He said that some adjustments have been made to the MRS, specifically on the length of every phase of development.

The railway is planned to have five phases.

He said that the Department of Transportation (DOTr) suggested to create a Mindanao Railway Corp., which will serve as the coordinating body for the railway system.

He said that they are also finalizing the specifications of this project, particularly on the mechanism that will be followed by interested bidders for the public-private partnership (PPP).

He said that some Japanese and Chinese investors have already expressed the willingness to bid.

MinDA will undertake a workshop next month to complete the list of the possible projects that will be funded by the Japanese government through its Japanese International Coordinating Agency (JICA).

Davao City Planning and Development Office (DCPO) head Ivan Cortez said that a study by a group of Chinese investors on a monorail project has yet to take off by March this year

Once pushes through, he said it will help de-clog traffic congestions in major thoroughfares in downtown Davao City.