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Manila Bulletin devider Philippines devider National devider Japan can be 'fallback' funding source for Mindanao Railways Project—Rep. Pimentel

Japan can be 'fallback' funding source for Mindanao Railways Project—Rep. Pimentel

Published Nov 2, 2023 05:56 am

Surigao del Sur Representative Johnny Pimentel on Thursday, November 2 is confident that Japan can be the “logical fallback funding source” for the construction of the Mindanao Railways Project (MRP).

Pimentel raised the idea ahead of Japanese Prime Minister Fumio Kishida’s visit to the Philippines from November 3 to 4.

A member of the House committee on flagship programs and projects, Pimentel said the Japan International Cooperation Agency (JICA) can takeover the project after the Philippine government withdraw from its loan negotiations with China.

The Department of Transportation (DOTr) earlier said the government is now looking at new financing options for the MRP to get the project moving.

“Our sense is, Japan is our best recourse, considering that JICA is already helping our DOTr in modeling our 30-year railways masterplan for Metro Manila, Central Luzon, and the Calabarzon,” Pimentel said in a statement.

“JICA is already providing us the extremely low-interest official development assistance (ODA) loans for the Metro Manila Subway and other rail projects in Luzon. We might as well ask them to double down and grant us the concessional loan for the MRP,” he stressed.

“We absolutely need the MRP to accelerate the transfer of people and goods, and drive Mindanao’s economic and social development,” the lawmaker added.

Phase 1 of the MRP is expected to cost P83-billion and will involve the construction of a 100-kilometer train line linking Tagum City—the provincial capital of Davao del Norte—with Digos City, the provincial capital of Davao del Sur, through Davao City.

The completion of the train line is expected to cut travel time between Tagum and Digos from the usual three hours to just an hour.

Pimentel also said he expects the MRP to generate thousands of construction-related jobs and livelihood opportunities that would benefit low-income families over several years.

As originally designed, the entire MRP is envisioned to contain a 1,544-kilometer railway stretching out to the cities of General Santos, Cagayan de Oro, Iligan, Cotabato, Zamboanga, Butuan, Surigao, and Malaybalay.

Related Tags

Japan International Cooperation Agency (JICA) Official Development Assistance (ODA) Johnny Pimentel Mindanao Railway Project
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