The Department of Transportation (DOTr) is seeking an alternative funding source to pursue the long-delayed P81.6-billion Mindanao Railway Project (MRP) Phase 1 with various pre-construction activities in Davao City, Digos and Tagum.
Following the cancellation of financial commitment from China, DOTr Secretary Jaime Bautista said in a statement the agency is coordinating with the finance department in seeking alternative funding sources, such as official development assistance from other foreign governments and international financial institutions.
“We decided to pursue Phase 1 of the MRP despite the withdrawal of prior funding commitment from the government of China. While looking for funding sources, various pre-construction activities show we are not dropping the project,” Bautista said.
So far, land acquisitions are ongoing along the target alignment from Tagum to Digos via Davao City, the DOTr said.
Resettlement sites for displaced residents have also been identified with villages in different stages of construction, it added.
“In fact, the Tagum Train Village is scheduled for turnover to its future residents in the coming months. Livelihood programs are also being prepared for affected families,” the transport chief said.
The MRP Phase 1 has a length of 100.2 kilometers and consists of eight stations.
Once operational, the rail line is expected to serve 122,000 passengers daily and reduce travel time from Tagum City to Digos City to an hour, from the current three hours.
The MRP Phase 1 Tagum-Davao-Digos line will concretize the master rail plan of connecting the entire island of Mindanao, Bautista noted.
Once the entire MRP is completed, the 1,544-km rail system will connect key provinces such as Davao, General Santos, Cagayan de Oro, Iligan, Cotabato, Zamboanga, Butuan, Surigao and Malaybalay.
