Mindanao Railway Phase 3 study complete by Q1

MANILA, Philippines —  The government expects to complete the feasibility study (FS) for Phase 3 of the Mindanao Railway Project (MRP) in the first quarter of next year, according to the Public-Private Partnership (PPP) Center.

Jeffrey Manalo, deputy executive director at the PPP Center, told reporters that the MRP Phase 3 is still under the FS stage.

“First quarter of next year, that’s the target to complete the study,” he said.

After the completion of the FS, he said the next step is to finalize project approval documents and to submit them to the appropriate approving body.

With the project estimated to cost P100.64 billion, it will have to go to the National Economic and Development Authority (NEDA) Board for approval.

Manalo said a project that costs above P15 billion has to be approved by the NEDA Board, while those below P15 billion just need the approval of the implementing agency.

The MRP Phase 3 will cover a 54.8-kilometer high-capacity, inter-city passenger and cargo railway system that will link Metro Cagayan de Oro (CDO) and major infrastructure such as the Laguindingan International Airport, the Port of CDO City, public ports under the CDO Base Port, the Mindanao Container Port and private ports and industrial estates under the Philippine Veterans Investment Development Corp.

Aside from the financing, design and construction of the railway, the project also covers operations and maintenance.

The project is expected to be seamlessly interoperable with the other phases of the MRP, as well as with other transport networks like the Iligan-Cagayan de Oro-Butuan Highway.

Manalo said the government is looking at implementing the MRP Phase 3 as a PPP project.

As for the other phases of the MRP, he said the government is looking at tapping official development assistance (ODA).

The first phase of the MRP was supposed to be funded by ODA from China, but the government withdrew its request for funding due to the lack of progress on the Chinese side’s part.

Last month, Transportation Secretary Jaime Bautista said the government is also considering tapping the private sector to implement the first phase of MRP as a PPP project.

The P83 billion MRP Phase 1 will cover Tagus, Davao del Norte to Digos City, Davao del Sur.