THE Public-Private Partnership (PPP) Center said it expects the completion of the feasibility study for the third phase of the Mindanao Railway project by the first quarter.
“Phase 3 of the Mindanao Railway project will be for PPP. Right now, it is in the feasibility study stage. Our target to complete this is by the first quarter,” PPP Center Deputy Executive Director Jeffrey I. Manalo told reporters on the sidelines of a briefing last week.
Only phase three of the Mindanao Railway project is being considered for PPP, Mr. Manalo said, noting that phases one and two will still be funded through official development assistance.
“The next step is, based on the study, (finalizing) the project documents and then submit it to the appropriate approving body depending on the final terms,” he said, noting that projects costing more than P15 billion require approval from the National Economic and Development Authority.
Last month, Transportation Secretary Jaime J. Bautista said his department is currently reviewing the alignment of the rail line.
He said the Department of Transportation is looking for other sources of funds including a possibility of tapping the private sector.
The Mindanao Railway Project phase 3 is a 54.8-kilometer high-capacity, inter-city passenger and cargo railway system linking the industrial and commercial centers of Cagayan de Oro, according to the PPP Center website.
Phase 3 of the Mindanao Railway project has an estimated project cost of P100.64 billion and will be procured via a solicited mode, according to the PPP Center.
The rail line will link critical infrastructure like Laguindingan International Airport, the port of Cagayan de Oro City, and the Mindanao Container port.
The Philippines dropped China as a funding source for the Mindanao Railway project, the South Long-Haul railway, and the Subic-Clark Railway, due to lack of progress on financing decisions by Beijing.
Earlier this year, the Transportation department said that it is finalizing the revision of the Mindanao Railway’s original study to make the project more modern and environment-friendly. — Ashley Erika O. Jose
