More PPP segments deemed an option for Mindanao railway

THE Department of Transportation (DoTR) said it is exploring the possibility of an expanded role for public-private partnerships (PPP) to fund the Mindanao Railway project, in place of the original plan involving Chinese financing.

“We had a previous funder, then (it didn’t go ahead). So now, same status… we are looking for a different funder and (updating the) feasibility study,” Transportation Undersecretary Timothy John R. Batan told reporters.

“A public-private partnership is being considered; that is an option,” he said, adding that if the PPP route is not taken, the project might also be presented to the Japan International Cooperation Agency or Asian Development Bank.

The PPP option is already being pursued for the third phase of the rail project.

The Mindanao Railway was previously set to be funded through official development assistance from China.

Mr. Batan said that the DoTr created a joint working group with the Mindanao Development Authority to work on projects in the region.

He said the DoTr is still uncertain when groundbreaking for the project can begin, as the government is still determining how to fund it, adding that he does not expect any progress on the financing front within the year due to the need to update the feasibility study.

Mr. Batan said the current feasibility study was based on 2018 data.

“We have to update the ridership assumptions (and our) cost estimates,” he added.

Last month, the PPP Center said that the pre-feasibility study for the third phase of the Mindanao Railway project was completed. 

Phase 3 is a 61-kilometer passenger and cargo railway system linking the industrial and commercial centers of Cagayan de Oro. — Justine Irish D. Tabile