DOTr aims to award Mindanao rail project by end of 2017

The Department of Transportation (DOTr) is targeting to award the 2,000-kilometer Mindanao railway project by the end of 2017, Transportation Secretary Arthur Tugade said on Friday.

At the House of Representatives’ deliberation on the P55.478-billion proposed budget of DOTr for 2017, Tugade said the National Economic Development Authority (NEDA) is already “fast-tracking” the feasibility study on the project, as it was earlier tagged as among the priority projects of the administration of President Rodrigo Duterte.

“The presentations with NEDA have already started. This has been placed on a fast track. The priority plans, the design, the destination and the origin are being laid out now,” Tugade said.

Tugade said that as soon as the specifics of the project have already been laid out, the DOTr will begin the bidding and the awarding process.

“Once that everything is in place, hopefully, we are targeting, before the end of next year, the award [of the contract],” Tugade said.

Socioeconomic Planning Secretary Ernesto Pernia told reporters that foreign and local investors have already signified interest to invest in the proposed project.

Pernia said among those who have expressed interest on the project were the governments of Japan, China and South Korea as well as local conglomerates Ayala Corp., San Miguel Corp., Metro Pacific Investment Corp., and Megawide Construction Corp.

The project is deemed crucial to economic development in Mindanao as it is expected to connect major cities such as Cagayan de Oro, Iligan, Zamboanga, Butuan, Surigao, Davao, and General Santos.

Pernia said the project—to be executed in two phases—may actually be completed after Duterte's term in 2022. — RSJ, GMA News