Topography raised Mindanao Railway’s project cost by 130.91% —DOTr official

CLARK CITY, Pampanga — Davao Region’s topography has prompted a revaluation of the Mindanao Railway Project Phase 1, more than doubling the project cost, a top official of the Department of Transportation (DOTr) said Tuesday.

Last year’s feasibility study for the Mindanao Railway Project-Tagum-Davao-Digos segment revealed a roller-coaster terrain that was not in the initial feasibility study done in 2015 to 2017, Transportation Undersecretary for Railways Timothy John Batan said told reporters here.

“‘Yung original feasibility study natin, ‘yung level of detail na tinatawag, was not yet very robust. Noong ginawa natin ‘yung engineering designs natin during 2018 doon natin narealize together, with our ADB (Asian Development Bank)-funded consultants na ‘yung terrain sa alignment, ‘yung linya, was different from what we assumed doon sa original feasibility study noong 2015 to 2017,” Batan said.

Batan was interviewed by reporters on the sidelines of the contract signing for the rolling stock of another railway project, the PNR Tutuban-Malolos segment.

“‘Yung original na feasibility study natin, ‘yung assumption niya was at-grade lang ‘yung buong system. Parang PNR ngayon nasa ground lang, pero ‘pag tinignan mo kasi ‘yung actual ground conditions doon sa alignment natin meron kang 33% tawagin nating bangin. So rolling kasi ang terrain sa alignment natin sa Tagum-Davao-Digos,” he said.

Because of the “rolling terrain,” the DOTr realized the need to construct viaducts or elevated structures as well as make “deep cuts” through several hills and mountains, making the project costlier than what was originally proposed.

On July 10, the Investment Coordination Committee-Cabinet Committee (ICC-CabCom) approved to increase the cost of the Mindanao Railway Project Phase 1 to P82.9 billion.

This is P47 billion or 130.91% more than the previous cost estimate of P35.9 billion in 2017.

Phase 1 covers the Tagum-Davao-Digos Segment (MRP-TDD) of the project, a 102.28-kilometer commuter railway from Tagum City in Davao del Norte to Digos City in Davao del Sur.

Despite the cost increase, Batan said China remains committed to finance the project through an official development assistance (ODA) loan.

“There has been no change in the commitment of China to finance Mindanao Railway,” he said, noting that the project will be 80% to 85% financed with ODA loan.

The loan agreement is targeted to be signed by the second quarter of 2020.

“Remember, for China ODA funded project, it’s procurement first, contract award, then loan agreement signing. With the decision of the ICC last week, we are already sending this week our request for a shortlist,” Batan said.

“So we will send that request within the week then as soon as we receive the shortlist [of three contractors], we do the limited competitive bidding. Ready na ang bidding documents for this ... Then we award within the year and we do the negotiations for China loan that usually take three to six months, the transportation official noted.

“So we’re expecting to award the contract within the year and get the loan agreement in place. Sabi nga ni Secretary kanina matagal na ‘yung second quarter next year,” he added.

The construction phase can happen by first or second quarter of 2020, Batan said.

“Wala pa ‘yung loan agreement nagtatrabaho na ‘yung project management consultant ... ‘Pag na-award na natin ang contract within this year, in parallel with the negotiation for loan agreement, nagtatrabaho na sila.”

Meanwhile, Transportation Secretary Arthur Tugade said the Mindanao Railway Project Phase 1 will return to tge original plan of non-electrified trains running on a single track.

“Para makapagsimula na,” Tugade said, adding that there is still an option to upgrade it to a double-track railway system with electric trains and standard gauge.

Batan noted the ICC-CabCom decide to pursue the original plan featuring single-track and diesel-powered to “optimize the investment.”

“The reason why the ICC decided that was to optimize the investment. Remember the Mindanao railway system is not just the 100-kilomter Tagum-Davao-Digos Phase 1. Mindanao railway is going to be the 1,500-kilomter system. For us to connect all of those different parts of Mindanao, the ICC needs to make optimization decisions,” he said.

The first phase is expected to cut travel time from Tagum City to Digos City from three and a half hours to one hour and 20 minutes when its starts operating in 2022.

The initial Phase will cover eight stations: Tagum, Carmen, Panabo, Mudiang, Davao Terminal, Toril, Sta. Cruz, and Digos, with a 10-hectare depot to be constructed in Tagum. —VDS, GMA News