Mindanao Railway Project cost increases for optimization

The Investment Coordination Committee-Cabinet Committee (ICC-CabCom) of the National Economic and Development Authority (NEDA) has approved the increasing of cost of the Mindanao Railway Project (MPP) Phase 1.

MPP Phase 1 (TDD) covers the first 102 kilometers of MPP with eight stations starting from Tagum City in Davao del Norte, passing Davao City, to Digos City in Davao del Sur.

“For the MRP-TDD, the project cost increase amounting to P82.9 billion—from its previously approved cost of P35.9 billion in 2017—will cover changes in cost of structural and construction works, among others,” NEDA said in a statement.

“We see changes in scope and cost as opportunities to optimize the project components and update the estimates. The Government aims to speed up implementation while ensuring quality,” Socioeconomic Planning Secretary Ernesto Pernia said.

Transportation Secretary Arthur Tugade said among the changes is from diesel-powered trains running on a single track to double-tracked railway system with electric trains and a standard gauge.