THE Department of Transportation (DoTr) said it is in talks with the Indian and French governments to fund the South Long-Haul Railway and the long-stalled Mindanao Railway project.
“Right now, we are engaging or courting our investors. (Maybe) the government of India will find it interesting to invest in the Bicol South Long-Haul line and the Mindanao Railway. We are trying to pitch these projects,” Acting Transportation Secretary Giovanni Z. Lopez told reporters on the sidelines of the Economic Journalists Association of the Philippines Infrastructure forum on Monday.
The DoTr is exploring potential bilateral or government-to-government agreements to fund the two major railway projects, Mr. Lopez said, adding that the government of France is among the potential investors.
“Then again, it is always open, it could be the World Bank, the ADB (Asian Development Bank), our financial partners, and JICA (the Japan International Cooperation Agency),” he said.
In May, the ADB said that it is ready to finance the Mindanao Railway Project after China withdrew funding support.
The ADB is ready to provide official development assistance (ODA) loans, or provide public-private partnership advisory services to help bring in investor, it said.
In 2023, the Philippines withdrew its loan request for ODA from China for the Mindanao Railway Project phase 1, and two more railway projects — the South Long-Haul railway, and the Subic-Clark railway, due to lack of progress towards a financing decision by Beijing.
The first phase of the Mindanao Railway Project is valued at P83 billion. It will run between Tagum, Davao del Norte and Digos City, Davao del Sur. It is expected to carry 122,000 passengers per day and cut travel time between Tagum and Digos from three hours to one.
The Philippine National Railways’ South Long Haul is estimated to cost about P175 billion, covering about 557 kilometers between Sucat and Matnog, Sorsogon. — Ashley Erika O. Jose