MANILA -- The Department of Transportation (DOTr) on Tuesday said it is pursuing the first phase of the Mindanao Railway project despite lacking a funding source. 

The railway was supposed to start construction in January 2019, but it was frozen as the project would have put the Philippine government at a disadvantage after the Chinese bank that was supposed to finance it demanded interest rates higher than 3 percent. 

• Mindanao Railway project phase 1 halted due to 'China's waning interest' over PH infra program

In 2022, the Philippine government considered the funding withdrawn, as China had not responded to queries.

In a statement, the DOTr said they are already acquiring land along the target sites from Tagum to Digos via Davao City.

The DOTr also said they have already identified resettlement sites for villages that will be displaced.

"The Tagum Train Village is scheduled for turnover to its future residents in the coming months. Livelihood programs are also being prepared for affected families,” Transportation Secretary Jaime Bautista said.

Bautista said the DOTr is already coordinating with the Finance department in seeking alternative funding sources for the project, such as Official Development Assistance (ODA) from other foreign governments and international financial institutions.

The project, which costs P81.6 billion, has a length of 100.2 kilometers consisting of eight stations.

Once operational, the rail line is expected to serve 122,000 passengers daily and reduce travel time from Tagum City to Digos City to an hour from the current three hours.

• 'Build! Build! Build?' Several China-backed railways yet to get funding says DOTr