The Philippine Department of Transportation (DoTr) is exploring the possibility of a Public-Private Partnership (PPP) for the Mindanao Railway Project following the withdrawal from the financing plan from the Government of China. The government is reviewing the project’s feasibility study and looking at multiple funding options, including potential private-sector participation.
Meanwhile, the government is still considering Official Development Assistance (ODA), it is increasingly leaning towards a PPP arrangement to expedite progress and attract private investment.
The Mindanao Railway project aims to boost regional economic development and reduce poverty, but experts warn that it may require subsidies to make it commercially viable for private investors. The first phase of the project, which covers a route from Tagum to Digos City, is valued at PHP83 billion and is expected to serve 122,000 passengers daily.
