Mindanao rail project attracts investors
DAVAO CITY—The governments of China, Japan and South Korea, and at least four homegrown conglomerates are interested to invest in the proposed 2,000-kilometer Mindanao railway system that will connect the entire island, officials of state planning agency National Economic and Development Authority (Neda) said Thursday.
Economic Planning Secretary Ernesto M. Pernia told reporters that China was “very eager” to finance the project, but the Japanese government was also pitching financing through official development assistance (ODA).
Pernia, who is also the Director-General of Neda, said at least four local groups—“the usual suspects”—were likewise interested in the project. These are Ayala Corp., Megawide Construction Corp., Metro Pacific Investments Corp. and San Miguel Corp.
Pernia said the Duterte administration intended plans to start work on the project next year, with completion expected beyond 2022.
Neda Deputy Director-General Rolando G. Tungpalan said a feasibility study was being undertaken to determine “the best way to structure the project.”
Tungpalan said the Chinese, Japanese and South Korean governments were all ready to fund the project.
Pernia said the Mindanao railway project might be funded through various ways, including ODA and public-private partnership (PPP) arrangement, but the government had yet to determine which would be most feasible. The project cost is also yet to be finalized.
The Neda chief said the government was looking at implementing the project in two stages, with the initial stage to connect the cities of Davao and Cagayan de Oro.
Earlier reports said the rail project would also pass through the cities of Butuan, Iligan, General Santos, Surigao and Zamboanga.
Pernia said this was part of the Duterte administration’s resolve to spread infrastructure development to underserved areas outside Metro Manila, especially Mindanao.
The government also plans to improve tourism infrastructure and sea ports on the southern island, he added.
