The Philippine government is actively seeking official development assistance and private investments from India, alongside other international financing institutions, to fund the P81.6-billion Mindanao Railway Project and the Bicol South Long Haul Project following the withdrawal of Chinese financial support.
Transportation Secretary Giovanni Lopez said the government explored funding arrangements during President Ferdinand Marcos Jr.’s official visit to India in the first week of September.
“We’re trying to pitch the projects,” Lopez told reporters on the sidelines of the EJAP Infrastructure Forum 2026.
Lopez emphasized that government-to-government (G2G) financing remains the preferred option for securing the needed capital. Alongside India, the Department of Transportation is looking at multilateral financial institutions and international development agencies, including the World Bank, Asian Development Bank (ADB), Japan International Cooperation Agency (JICA), France and various export-import banks.
Phase 1 of the Mindanao Railway Project spans 100.2 kilometers across eight planned stations, connecting Tagum City, Davao City, and Digos City. Once operational, Phase 1 is projected to accommodate 122,000 passengers daily while cutting travel time between Tagum City and Digos City from three hours down to one hour.
Upon full completion, the entire 1,544-kilometer rail network will serve as the first major railway system outside Luzon. The network is designed to link major economic hubs across Mindanao, including Davao, General Santos, Cagayan de Oro, Iligan, Cotabato, Zamboanga, Butuan, Surigao and Malaybalay.
Initially launched under the former Duterte administration’s “Build, Build, Build” initiative, the flagship infrastructure program aims to lower transport costs, strengthen inter-island connectivity, and drive long-term economic growth throughout the region.