Construction of the project is expected to start by the fourth quarter of next year, and will most likely continue until after the term of President Gloria Macapagal Arroyo, who has made the project one of her administration’s top priorities.

Transport Undersecretary Mamondiong said the government has approached Poland, Saudi Arabia, and Spain for overseas development assistance (ODA) for the project, which is estimated to cost around $800 million to $1 billion — more than the initial estimate of around $700 million for the project.

Phase 1 of the project, which is a 120-kilometer stretch of railway that will pass through the Cagayan de Oro to Iligan industrial corridor, will be awarded to bidders through a build-operate-transfer agreement, he said.

The railway system will also link Laguindingan International Airport and the Mindanao Container Terminal. It will have passenger and cargo operations.

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