Mindanao Railway to start construction in 2011
Mike Banos
December 24, 2009
Construction of the Mindanao Railways is scheduled to start in 2011 with the initial spur of the first phase between Cagayan de Oro City and the new airport in Laguindingan, Misamis Oriental.
"Hopefully, if the Laguindingan Airport is completed by 2012 as originally scheduled, the first spur of the Mindanao Railway will be ready to serve it by 2013," said Bernie Buenaventura, project director of the Mindanao Railways System (MRS) project during a project update for political leaders and media held November 23 at a local hotel.
The diesel-electric service would initially start offering passenger services but would later enable passengers bound for the Laguindingan airport to check-in their luggage at a local station from whence it would be routed straight to the airport.
However, before construction starts, Buenaventura said the project still has to hurdle a number of obstacles, first of which is the restoration of the P13.2-million operating budget of the Mindanao Railways Project Office (MRPO) earlier scratched by the Department of Budget and Management.
Rep. Rufus B. Rodriguez (2nd District, Cagayan de Oro), author of House Bill No. 1855 (creating the Mindanao Railways Corporation and providing funds for its operation) has assured the restoration of the full amount during the budget hearings for 2010.
Besides the P51-million for the completion of the feasibility study (FS), Rodriguez said he would also lobby for an additional P100-million to commence acquisition for the 30-meter right-of-way (ROW) in Cagayan de Oro next year. A further P2-billion is needed to complete the ROW acquisition and start construction.
"It usually takes 5-7 years to develop a railway project," said DOTC Undersecretary for Rails Guiling A. Mamondiong, who is also Special Action Officer for the MRS.
Mamondiong said the FS for the Cagayan de Oro-Iligan Corridor has been completed with the Cagayan de Oro-Davao-General Santos line ongoing and the Iligan-Zamboanga City line now undergoing technical assessment.
The project has been endorsed by the Infrastructure Committee of the RDC X and will be part of the agenda in the 84th meeting of the Regional Development Council which will be conducted on December 11, 2009 in Malitbog, Bukidnon.
After its approval and endorsement by the RDC-X, the project is next slated to be evaluated by the National Economic & Development Authority´s Investment Coordinating Council (ICC) technical committee and thence to the NEDA Board for final approval. Earlier, the NEDA-X, which is the Secretariat of the RDC-X, facilitated the drafting of an statement of support signed by the RDC Chairperson Gov. Jurdin Jesus M. Romualdo of Camiguin, indicating that the project is among the priority projects of the region.
Mamondiong said the government is looking at a joint facility of the Kingdom of Saudi Arabia (KSA) and Iran with a minimal 2% interest and 25-year payback period to finance the bulk of the project. DOTC is also talking with China and South Korea for supplier credits. Earlier, Poland, Saudi Arabia and Spain were also being sought for possible ODA assistance.
Buenaventura is confident the MRS would easily hurdle the ICC benchmarks for both the economic and financial rate of returns (EIRR/FIRR) of railway systems.
"We are starting the project in the Cagayan de Oro-Iligan Corridor (CIC) are since the feasibility studies have shown it has the highest ridership in the entire Mindanao and showed ´very impressive´ EIRR and FIRR.
Most recent project estimates have placed the total project cost at P66.5-billion (US$1.33-billion). It is envisioned to be implanted in four phases: initially from Laguindingan to Cagayan de Oro City; second from Laguindingan to Iligan City; third from Cagayan de Oro to Phividec area in Tagoloan, Misamis Oriental and the fourth phase from Iligan City to Linamon town, Lanao del Norte. The project aims to cut the present 90-minute travel time by buys between Cagayan de Oro and Iligan to 15-20 minutes.
The initial Mindanao strategic railway development plan will link urban centers like Cagayan de Oro, Iligan, Zamboanga, Pagadian, Dipolog, Marawi, Cotabato and Davao cities.
"Hopefully, if the Laguindingan Airport is completed by 2012 as originally scheduled, the first spur of the Mindanao Railway will be ready to serve it by 2013," said Bernie Buenaventura, project director of the Mindanao Railways System (MRS) project during a project update for political leaders and media held November 23 at a local hotel.
The diesel-electric service would initially start offering passenger services but would later enable passengers bound for the Laguindingan airport to check-in their luggage at a local station from whence it would be routed straight to the airport.
However, before construction starts, Buenaventura said the project still has to hurdle a number of obstacles, first of which is the restoration of the P13.2-million operating budget of the Mindanao Railways Project Office (MRPO) earlier scratched by the Department of Budget and Management.
Rep. Rufus B. Rodriguez (2nd District, Cagayan de Oro), author of House Bill No. 1855 (creating the Mindanao Railways Corporation and providing funds for its operation) has assured the restoration of the full amount during the budget hearings for 2010.
Besides the P51-million for the completion of the feasibility study (FS), Rodriguez said he would also lobby for an additional P100-million to commence acquisition for the 30-meter right-of-way (ROW) in Cagayan de Oro next year. A further P2-billion is needed to complete the ROW acquisition and start construction.
"It usually takes 5-7 years to develop a railway project," said DOTC Undersecretary for Rails Guiling A. Mamondiong, who is also Special Action Officer for the MRS.
Mamondiong said the FS for the Cagayan de Oro-Iligan Corridor has been completed with the Cagayan de Oro-Davao-General Santos line ongoing and the Iligan-Zamboanga City line now undergoing technical assessment.
The project has been endorsed by the Infrastructure Committee of the RDC X and will be part of the agenda in the 84th meeting of the Regional Development Council which will be conducted on December 11, 2009 in Malitbog, Bukidnon.
After its approval and endorsement by the RDC-X, the project is next slated to be evaluated by the National Economic & Development Authority´s Investment Coordinating Council (ICC) technical committee and thence to the NEDA Board for final approval. Earlier, the NEDA-X, which is the Secretariat of the RDC-X, facilitated the drafting of an statement of support signed by the RDC Chairperson Gov. Jurdin Jesus M. Romualdo of Camiguin, indicating that the project is among the priority projects of the region.
Mamondiong said the government is looking at a joint facility of the Kingdom of Saudi Arabia (KSA) and Iran with a minimal 2% interest and 25-year payback period to finance the bulk of the project. DOTC is also talking with China and South Korea for supplier credits. Earlier, Poland, Saudi Arabia and Spain were also being sought for possible ODA assistance.
Buenaventura is confident the MRS would easily hurdle the ICC benchmarks for both the economic and financial rate of returns (EIRR/FIRR) of railway systems.
"We are starting the project in the Cagayan de Oro-Iligan Corridor (CIC) are since the feasibility studies have shown it has the highest ridership in the entire Mindanao and showed ´very impressive´ EIRR and FIRR.
Most recent project estimates have placed the total project cost at P66.5-billion (US$1.33-billion). It is envisioned to be implanted in four phases: initially from Laguindingan to Cagayan de Oro City; second from Laguindingan to Iligan City; third from Cagayan de Oro to Phividec area in Tagoloan, Misamis Oriental and the fourth phase from Iligan City to Linamon town, Lanao del Norte. The project aims to cut the present 90-minute travel time by buys between Cagayan de Oro and Iligan to 15-20 minutes.
The initial Mindanao strategic railway development plan will link urban centers like Cagayan de Oro, Iligan, Zamboanga, Pagadian, Dipolog, Marawi, Cotabato and Davao cities.
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