2014: Conduct of the Feasibility Study (F/S) of the Mindanao Railway Project

http://www.neda.gov.ph/wp-content/uploads/2015/04/TOR-for-the-Conduct-of-the-FS-of-MRP-23-04-15-LATEST.pdf

BACKGROUND/RATIONALE

1.1. Contracting Authority

The General Appropriations Act (GAA) for FY2014 has allocated the amount of PhP400,000,000.00 for the conduct of feasibility studies (F/S) to be administered by the National Economic and Development Authority (NEDA).

For this Terms of Reference (TOR), NEDA shall be the Executing Agency while the Department of Transportation and Communications (DOTC) shall be the Implementing Agency. The proposed Project is consistent with DA’s major programs/projects/activities (PPAs).

1.2. Relevant Country/Sector Context

The proposed Mindanao Railway Project (MRP) is supportive of the thrust of the Updated 2011-2016 Philippine Development Plan (PDP), specifically under Chapter 10 (Accelerating Infrastructure Development). Said Plan recognizes that the major shortcoming of the transportation sector is the lack of integrated and coordinated transport network. Global assessments of the country’s transport infrastructure network indicate that its quality and capacity remain low. The lack of integration between national and local government plans and programs/projects is also a major problem that results in gaps in the transport network, contributing to the low capacity and quality of infrastructure facilities.

1.3. Current State of the Transport Sector

Mindanao shares the same constraints in transport infrastructure improvements. To improve physical connectivity within Mindanao, a fast, safe, reliable, efficient, convenient, dependable, environment-friendly and alternative mode of transport will provide the people of Mindanao the benefits of reduced travel time and increased opportunities for economic activities.

The development of MRP has long been planned but never realized. Mindanao is the second largest island group with an area of 106 thousand square kilometers and has a 22 million population with an annual population growth rate of 1.9 percent from 2000 to 2010.

The proposed railway transport service will play a major role towards improvement of Mindanao’s intra island accessibility, linkages and seamless multimodal transport networks. The island is strategically located and has potential as a major transshipment point and center of trade in the Brunei DarussalamIndonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) region.

Enhanced interconnectivity and linkages through passenger and freight railway transport development will further boost tourism, trade and commerce in the island; bring opportunities for the acceleration of local area development; and expansion of local markets for more efficient movement of goods and people to promote productivity and trade competitiveness.

It is deemed to complement/integrate programs/projects that will address the lingering problem on poor quality of roads and incomplete road networks in some parts of Mindanao, e.g., interconnectivity between rail, maritime and aviation transport infrastructure facilities.

1.4. Related Project/Programs and Other Donor Activities

To assess the viability of implementing the MRP, the following studies were previously undertaken:

• Strategic Railway Development Plan (SRDP);
• Cagayan De Oro-Iligan Corridor (CIC) from Linamon to Jasaan;
• Pre-Feasibility Study for Tagum-Davao-Digos Corridor; and
• Technical Assessment for Iligan-Pagadian City-Zamboanga.

Under this TOR, the F/S must examine and take into consideration the proposed MRP’s contribution to the Southeast Asia regional integration process, the Master Plan on ASEAN Connectivity, which includes a proposal for the development of a regional nautical highway that would essentially expand the Philippine Roll on/Roll off (RORO) system. Said Plan, which will serve as the main vehicle of the planned economic integration by 2015, intends to enhance the physical, institutional and people-to-people interconnectivity across Southeast Asia and the BIMP-EAGA region.