DAVAO CITY – After the national government announced it would no longer pursue loan negotiations with the Chinese government for the Mindanao Railway Project, Mindanao Development Authority (MinDA) Secretary Leo Tereso Magno said that there are three foreign private companies that are interested in constructing the project.
MAGNO (MinDA FB)
Magno said that two firms from South Korea and one from Japan have expressed interest in pursuing the project.
He said that the Department of Transportation (DOTr) is working on the new “technical description” as the national government wants to pursue a more modern technology that will utilize electricity, instead of diesel under the previous proposal.
Magno said DOTr also wants to build a railway project that would cater to both cargoes and passengers to help move produce from different farms to boost the agricultural sector of Mindanao.
He said that the proposed railway system under the administration of former President Rodrigo R. Duterte could only carry passengers.
Magno said the DOTr is working on terms of reference to proceed with the new feasibility study.
In a letter dated July 12 to President Ferdinand R. Marcos Jr., Kim Dong Man, chairman of Mindanao Oriental Rail Technology, expressed his firm’s interest in the design and construction of the project.
He said his team from the Mindanao Oriental Rail Technology consortium conducted an inspection of all the possible Mindanao routes, including nearby major economic hubs and ports in the region.
Kim said they were impressed with the “beauty and potential of Mindanao” as a major economic hub.
He said Mindanao could contribute to the country’s growing economy.
Kim believed that a railway project will support Mindanao’s various industries, including, among others agriculture, food processing, exports, mineral processing, and tourism.
He said that his company commits to utilize South Korea’s railway technology for the Mindanao Railway Project.
Magno said that the government has several options to obtain the financial requirement needed to build the railway system, including its own resources, private-public partnership (PPP), or foreign loans.
“We have a President who believes in PPP,” he said.
Last October, Transportation Secretary Jaime Bautista announced that that the Philippine government would no longer pursue negotiations with the Chinese government for an Official Development Assistance (ODA) on the project.
Bautista said that the Philippine government is “looking for another funding source.”
According to the DOTr, the cost of the entire Tagum-Davao-Digos line is pegged at P81.7 billion.
Stations will be located in Tagum, Carmen, and Panabo in Davao del Norte; Mudiang, Maa, and Toril in Davao City; and Santa Cruz and Digos City in Davao del Sur.
DOTr said the TDD segment will reduce travel time between Tagum and Digos from 3.5 hours to 1.3 hours and will provide “passengers safe, fast, and reliable transport options on the TDD commuter line.”
A flagship project of the Duterte administration’s “Build, Build, Build” program, the railway was originally targeted to be completed in 2021, and expected to serve approximately 134,000 riders a day by 2022, up to 237,000 by 2032, and 375,000 by 2042.