BY KERLYN G. BAUTISTA, Reporter
Mindanao rail planned
Germany, Saudi Arabia to put money in Cagayan-Cotabato phase
Germany and Saudi Arabia are investing over P18.1 billion to partially finance the construction of an 82.5-kilometer mass transit system that will link the cities of Iligan, Cagayan de Oro, Gingoog, Marawi, and Cotabato in Mindanao by 2008.
This project, estimated to cost $520 million or over P28 billion, is expected to benefit 60,000 to 90,000 commuters daily in the Iligan-Cagayan de Oro "Industrial Corridor."
Transport Undersecretary Guiling A. Mamondiong told BusinessWorld yesterday that Germany would invest 220 million euros or P15.4 billion this year for the railway’s electronics and mechanicals.
Through German technology company Siemens, it will also provide 12 trains with travel speeds of 80-150 kilometers per hour. It will also put up ticketing, signaling, and communication systems.
Saudi Arabia will also lend $40 million and donate another $10 million, or a total of P2.705 billion, for the project.
The official said the government would also seek funding from Kuwait, United Arab Emirates, Qatar, Oman, Libya, Brunei, and Thailand, which would do the feasibility study on the railway. Civil works will start in 2006. Project completion is scheduled for 2008.
"This will be the first major railway system outside Metro Manila, something that is well in line with the decongestion of the metro. After these rail projects are finished, we think we can have 40% reduction in our oil import," he said.
The government is proposing to build the Mindanao Railway System, a six-phase, 2,000-kilometer circumferential railway system.
Its first phase will connect Iligan and Cotabato. Phase two will connect Gingoog, Butuan, and Surigao. Phase three will connect Butuan, Monkayo, and Davao. Phase four will connect Davao, General Santos and Cotabato. Phase five will connect Iligan, Aurora, Dipolog, Liloy, Ipil and Zamboanga, and phase six will connect Cagayan de Oro, Malaybalay, Damulog, and Davao.