China giving loans to build railway project in southern Philippines

Monday, March 5, 2018

 The Chinese government will fund the railway project in southern Philippines to increase the tourism and transportation system.

According to the Department of Transportation in Philippines, the Chinese government is sanctioning a loan to build the railway project in Philippines’ southern island of Mindanao.

The Transportation Undersecretary Timothy John Batan said Phase 1 of the railway project is being funded through the government budget or the General Appropriations Act (GAA).

The Phase 1 of the Mindanao railway project involves the 102.9-km Tagum-Davao-Digos Segment which costs 31.9 billion pesos (S$807.8 million).

The Tagum-Davao-Digos Segment is predictable to decrease the travel time from Tagum City, Davao del Norte to Digos City, Davao del Sur from 3.5 hours to 1.3 hours once it starts operating in 2022.

The design and construction of the railway project will begin by the third quarter of this year.

Meanwhile, Batan also said that the construction of the railway project from Manila to Bicol region in southern Luzon is expected to start by the end of the year.

The railway project funded by China has expected to cost 175 billion pesos. John Batan said that the China will give the exact amount of the actual winning bidder’s contract.

The railway project involves the construction of nine train stations. The construction of the railway is expected to be completed by 2022.

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