FACT CHECK: Mindanao Railway Project not cancelled

CLAIM: The Mindanao Railway along with five other railway projects is cancelled.

A post from the Facebook page Anabis, which describes itself as a page providing updates on infrastructure and economic developments, posted on November 3 that six railway projects in the country will be “doomed to be canceled or delayed”. Among these are the Makati Subway Project, BGC Skytrain, and Mindanao’s first railway project.

RATING: Misleading

FACTS: The Philippine government has only cancelled its loan agreement with China for its infrastructure projects that include the Mindanao Railway Project.   

The Department of Finance wrote to the Chinese Assembly that it is formally withdrawing its proposal for development aid from China for the railway project. Reasons given by Chinese and Philippine officials for the withdrawal are the inaction of the Chinese government since 2022, higher interest rates, and “geopolitical factors.”

However, this does not mean that the project is cancelled. Transportation Secretary Jaime Bautista said the project is unaffected by the cancellation of the loan agreement as the project has been approved already by the National Economic Development Agency (NEDA). He said the government can still seek other possible sources of funding such as South Korea, Japan, and India. One of the countries mentioned has expressed interest and is in talks for the project.

The Mindanao Railway Project is priced at P83 billion for its Phase 1, which will connect Tagum, Davao, and Digos cities in the Davao Region. It was originally set to begin construction in January 2019.

The resettlement sites for the affected areas have already been decided, and some affected families are starting to be compensated.

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