₱83 Billion Mindanao Railway Project Seeks New Funding Partners

The Department of Transportation (DOTr) is seeking new funding partners to finance the construction of the long delayed ₱83 billion Mindanao Railway Project, one of the country's biggest planned railway developments.

The agency said it is in talks with the Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), as well as potential partners from South Korea, France, Spain, and India to help fund the project after the Philippines withdrew its previous loan request from China in 2023 due to the lack of progress in financing.

While the government continues preparatory activities, including right of way acquisition and relocation for affected communities, the DOTr is working to secure financing needed to move the railway into its construction phase.

₱83 Billion first phase to connect Tagum, Davao and Digos

The project's first phase, known as the Tagum Davao Digos (TDD) segment, is estimated to cost ₱83 billion.

Once completed, the railway will connect Tagum City, Davao City, and Digos City, providing a faster and more reliable transport option for commuters while improving connectivity across the Davao Region. The line is expected to serve around 122,000 passengers daily.

The Mindanao Railway Project is also expected to support economic growth by improving the movement of people and goods throughout the region.

Government explores new financing options

The Mindanao Railway Project was originally expected to receive funding through a loan from China. However, the Philippine government withdrew its loan request in 2023 after financing negotiations failed to progress.

To move the project forward, the DOTr is now exploring alternative financing through international development partners and other funding arrangements.

The department also confirmed that discussions are ongoing with potential funding partners for the proposed MRT 4 project in Rizal as part of the government's broader railway expansion programme.

Although a new funding agreement has yet to be finalised, the government's continued efforts to secure financing represent another step towards bringing the Mindanao Railway Project closer to construction.