DAVAO CITY(October 21) — After its planned Chinese financing failed to materialize, the long-delayed Mindanao Railway project is turning to India and France for funding, as the government seeks to revive a rail link expected to cut travel time between Tagum and Digos to one hour.
Acting Transportation Secretary Giovanni Lopez said the Department of Transportation (DOTr) discussed possible financing with the Indian government in September, while France has also expressed interest in the project.
Lopez disclosed the discussions Monday at the Economic Journalists Association of the Philippines’ infrastructure forum, saying the agency expects to complete bidding by 2027.
The proposed 1,544-kilometer railway network is envisioned to connect key areas across Mindanao. Its first phase will cover 102 kilometers, with eight stations linking Tagum, Davao and Digos cities.
The project was initially expected to receive Chinese financing. In 2023, however, the Philippines withdrew its request for official development assistance after Beijing failed to act on the proposed loan, prompting the government to seek alternative funding sources.
Lopez said the project continues to attract interest from potential investors and lenders.
The DOTr is prioritizing right-of-way acquisition to prepare the project for implementation. Lopez said the absence of condominium developments along the proposed route could simplify land acquisition and improve the railway’s appeal to prospective financiers.
Once operational, the first phase is expected to reduce travel time between Tagum and Digos from more than three hours to one hour and serve an estimated 122,000 passengers daily.
The DOTr now faces a test of delivery: securing a firm financing commitment, completing right-of-way acquisition and meeting its 2027 bidding target. After the collapse of the Chinese funding plan, expressions of interest from India and France are not guarantees that the railway will be built. The agency must show how it intends to close the financing gap, what milestones remain before construction can begin, and whether its latest timetable can finally move the long-delayed project beyond repeated promises.
