THE Chinese government may finance the first phase of the Mindanao Railway project, according to the National Economic and Development Authority (Neda).
Socioeconomic Planning Secretary Ernesto M. Pernia said the project is set for Neda Board approval at its next meeting. This newspaper reported last month that the project has been approved by the Investment Coordination Committee (ICC).
The ICC approved a cost increase for the Mindanao Railway Project Phase 1 ºTagum-Davao-Digos Segment of 125.25 percent to over P80 billion from the initially approved P35.91 billion.
“It’s scheduled [to be financed by] China, the first segment, as of now,” Pernia recently told reporters. “[There was an] increase in the cost because it will go through some mountainous areas.”
Pernia said the project is already up for discussion in the next meeting of the Neda Board, the highest policy-making body of the Neda and chaired by the President.
He said, however, that discussions on the Mindanao Railway may not be included in the President’s upcoming state visit to China.
Online reports indicated that the President’s visit to China is his fifth since he assumed office in 2016. Reports said the President is expected to discuss the South China Sea issue, among others, with Chinese President Xi Jinping.
Documents obtained by BusinessMirror earlier showed the increase in cost was due to the addition of a Davao satellite depot. There were several options presented and the ICC Cabcom chose Option 3 without land development.
Option 3 without land development costs P80.887 billion to undertake. It also provides for a single track project, no second track provision and no provision for electrification.
The amount, however, did not cover the new depot, which when added to the cost of Option 3 could bring the project up to around P82 billion.
The Mindanao Railway System is a 2,000-kilometer railway. The railway will have two segments that will connect various provinces in Mindanao.