Published November 3, 2008 2:04am
https://www.gmanetwork.com/news/news/regions/130943/1b-in-oda-sought-for-mindanao-railway/story/
MANILA, Philippines - The government is seeking as much as $1 billion in foreign aid to fund the construction of one part of the planned Mindanao railway system, which is expected to drive economic development in the conflict-torn region.
Construction of the project is expected to start by the fourth quarter of next year, and will most likely drag on until after the term of President Gloria Macapagal Arroyo, who has made the project one of her administration’s top priorities. "What’s important is we get it started and that finally, Mindanao will have a railway system," Transport Undersecretary Guiling A. Mamondiong said in an interview last week.
Mrs. Arroyo in late June formed the Mindanao Railways Project Policy and Coordinating Committee composed of Transportation Secretary Leandro R. Mendoza, Public Works Secretary Hermogenes E. Ebdane, Jr. and Budget Secretary Rolando G. Andaya, Jr. as members, with House Speaker Prospero C. Nograles as the group’s adviser.
The committee will advise the Office of the President on prioritization and schedule of implementation of the various railway lines in the South, serve as the "coordinating and issue-resolution" body; and submit a development plan to the President for approval not later than Dec. 1. Mr. Mamondiong said the government has approached Poland, Saudi Arabia, and Spain for overseas development assistance (ODA) for the project, which is estimated to cost around $800 million to $1 billion — more than the initial estimate of around $700 million for the project.
Phase 1 of the project, which is a 120-kilometer stretch of railway that will pass through the Cagayan de Oro to Iligan industrial corridor, will be awarded to bidders through a build-operate-transfer agreement, he said. The railway system will also link two vital Mindanao gateways, Mr. Mamondiong said. These are the Laguindingan International Airport and the Mindanao Container Terminal. It will have passenger and cargo operations.
The route is being prioritized, since the covered stretch is the industrial gateway and a key trade center of Mindanao. Mr. Mamondiong said clashes between the military and separatist Muslim groups in the southern part of the Philippines would not be a concern since the area that the railway would cover is "the most peaceful part of Mindanao." He said the DOTC was bidding out to local firms the contract for the feasibility study. "Any time now, it will be awarded," he said.
In a statement last September, Mr. Nograles, who also represents the Davao’s first district in Congress, said the project was expected to be an efficient, reliable and affordable mode of transportation in Mindanao. The project will spur development, attract foreign investments and create thousands of jobs in the region, he said.
The planned Mindanao railway consists of a criss-crossing network of lines linking Cagayan de Oro to Iligan, Iligan to Zamboanga City, and Cagayan de Oro to Agusan and Surigao, as well as extensions to Davao and General Santos cities. The plan for a Mindanao railway started with former President Fidel V. Ramos. It was revived by his successor Joseph Estrada, but the project failed to take off.
— P.L.G. Montecillo, BusinessWorld