DOTr seeks new funding source for Mindanao railway project

The Department of Transportation (DOTr) is currently searching for new funding sources and updating the feasibility study for the long-delayed Mindanao Railway Project.

DOTr Undersecretary for railways Timothy John Batan said the agency recently formed a joint working group with the Mindanao Development Authority (MinDA) to advance discussions on the project.

“We established a joint working group together with MinDA. One of the projects that we are looking at is the Mindanao Railway,” Batan said.

The project stalled after its previous funding source withdrew, forcing government to explore alternative financing. Batan said that while government had a previous funding source, that negotiations failed to move forward, prompting DOTr to look for a different partner.

DOTr is considering looking for a private investor under a public-private partnership (PPP) scheme or possibly another financial arrangement with long-time partners the Asian Development Bank (ADB) or the Japan International Cooperation Agency (JICA).

Batan said the project is unlikely to break ground in 2026 because the government should first revise an existing study completed in 2018. The update will reflect current economic conditions, cost estimates and ridership projections.

The project is intended to be the first railway system in Mindanao that aims to improve connectivity and support economic activity across major cities and provinces.