Phl turns to India for stalled railway projects

The Philippines is turning to India for potential financing of two major railway projects in Mindanao and Bicol as the government struggles to secure funding for long-delayed infrastructure investments outside Metro Manila.

Transportation Secretary Giovanni Lopez said the government has pitched the Mindanao Railway and Bicol South Long Haul Railway projects to India, hoping to attract fresh capital and revive efforts to expand the country's rail network.

"Right now we're engaging in, like, courting our investors," Lopez told reporters on the sidelines of the EJAP Infrastructure Forum 2026 on Monday.

He said the railway projects were among the investment opportunities discussed with the Indian government during President Ferdinand Marcos Jr.'s visit to India.

"Part of our discussion with the government of India is, maybe they'll find it interesting to invest in the Bicol South Long Line and the Mindanao Rail. So, we're trying to pitch the projects," Lopez said.

Lopez noted that government-to-government financing would be the preferred arrangement, although no agreement has been secured.

"What we're doing right now is basically to expedite and to finish what we call the right-of-way," Lopez said during his presentation.

"No one is funding this yet. We are still enticing financial investors, our lenders, but nonetheless we can focus on the right-of-way acquisition at this point in time," he added.

The Department of Transportation is also keeping its financing options open to other international lenders, including the World Bank, Asian Development Bank (ADB), Japan International Cooperation Agency (JICA) and export-import banks.

"Again, it's always open—the World Bank, ADB, our financial partners, the JICA," Lopez said.

France could also be among the potential financing partners, although Lopez said he could not confirm its involvement.

The first phase of the Mindanao Railway Project, valued at P81.6 billion, will establish a 100.2-kilometer rail link between Tagum City and Digos City through Davao City, with eight stations serving an estimated 122,000 passengers daily.

The project is expected to reduce end-to-end travel time to just one hour from the current three hours.

The initial segment is part of a planned 1,544-kilometer railway network connecting Mindanao's major economic and commercial centers, including Davao, General Santos, Cagayan de Oro, Iligan, Cotabato, Zamboanga, Butuan, Surigao and Malaybalay.