THE GOVERNMENT is planning to tap a $5-million grant from the Asian Development Bank (ADB) to prepare the first phase of the Mindanao railway, the Department of Finance (DoF) said.
The program is called the Strengthening Infrastructure Capacity and Innovation for Inclusive Growth technical assistance grant made in October.
“The Department of Transportation (DoTr) has proposed that preparation activities for the Tagum-Davao-Digos segment of the Mindanao Rail Project be covered by the ADB grant,” the DoF said in a statement.
The DoTr’s planning exercise is separate from the National Economic and Development Authority’s (NEDA) plan to utilize the funds for its Project Facilitation, Monitoring and Innovation Task Force — an interagency committee to address infrastructure development bottlenecks.
The Mindanao Rail project-Phase 1 spans 102 kilometers traversing the cities of Tagum, Davao, and Digos.
As approved by NEDA Board, it would cost some P35.26 billion, to be funded out of the government budget, and is targeted to start construction by the third quarter this year.
The government expects the first phase to be completed before 2022.
Aside from the technical assistance grant, the ADB also provided a $100-million loan in October for the preparation of its infrastructure projects — a majority of which will be implemented by the DoTr and the Department of Public Works and Highways.
The government on the other hand will provide counterpart funding of $60 million for the infrastructure preparation facility.
The administration plans to spend some P8.4 trillion in infrastructure until 2022, which is expected to boost economic growth to 7-8% starting this year. — Elijah Joseph C. Tubayan
