The Department of Transportation (DOTr) will update the feasibility study for the Mindanao Railway Project (MRP) to attract new financing partners after the Philippines withdrew from a Chinese loan deal in 2023. The original study for Phase 1, covering Tagum to Digos, was completed under the Duterte administration, but lenders have since flagged it as outdated. The Asian Development Bank (ADB) will fund the update, which will also cover Phase 2, from Laguindingan Airport to Villanueva.
The new feasibility study will be bid out to consultants later this year, with work expected to begin by mid-2026 and finish in early 2027. DOTr officials confirmed that potential partners include ADB, France, India, and South Korea. The agency emphasised that an updated study is a prerequisite for advancing talks with these parties.
The MRP was excluded from the 2026 national budget after delays and the absence of a financing deal. The DOTr had sought PHP5.46 billion for right-of-way acquisition, but the Department of Budget and Management provided zero funding, aside from PHP1 billion in unprogrammed appropriations, should a new loan agreement be signed. Other rail projects, including MRT-4, the South Long-Haul line, and LRT-2 East Extension, also received no funding in the proposed budget.