The Government of the Philippines is now seeking private sector involvement to push forward the stalled Mindanao Railway Project (MRP) after dropping plans for Chinese official development assistance (ODA). The Mindanao Development Authority (MinDA) has confirmed that the Department of Transportation (DOTr) is reassessing the project design and financing strategy, including options for Public-Private Partnerships (PPP). Originally designed as a single-track diesel system, the project is now under review with possible changes to its alignment and electrification, especially after local opposition emerged.
The timelines for the project is not finalised yet, the project remains a key priority for both national and local governments. The withdrawal from Chinese funding in late 2023 has opened the door to exploring unsolicited proposals. Though the DOTr has not released a revised plan, foreign investors have shown strong interest, and the government is favouring PPP arrangements over further borrowing. Montenegro added that if the PPP route proceeds, fare regulations will be enforced to keep rates affordable. The Tagum-Davao-Digos section, estimated at PHP83 billion, aims to cut travel time from 3.5 hours to 1.5 hours once completed.