The government and private sector of the Davao Region will begin working on a program to be backed by an international financing body which will source the appropriate amount to fund important infrastructure projects in the region to sustain its economic development.

As this developed, a memorandum of agreement was forged between the Davao Integrated Development Program, the Mindanao Business Council and the MCC Capital Projects, Ltd.

The signing of the agreement was held last Wednesday, December 19 during the DIDP board meeting chaired by Davao del Norte Governor Rodolfo del Rosario who represented the DIDP. The other signatories were MinBC chair Vicente T. Lao and the MCC representatives M. Faisal Kasim, chief executive officer and John Tapp, director and company secretary.

Del Rosario in a press briefing after the MOA signing stressed the need to integrate and harmonize various infrastructure projects within the DIDP area.

As indicted in the agreement Del Rosario said the priority infrastructure projects include the Light Rail Transit and the Samal Bridge.

However Del Rosario said under the DIDP Master Plan are several projects but they cited the local railway transit and the Samal bridge as their priority.

He said the parties involved agreed to collectively undertake infrastructure and/or entrepreneurial projects in an efficient and expeditious manner that would benefit Mindanao and help in the growth of the BIMP EAGA region.

As stipulated in the agreement, the DIDP and the MinBC shall undertake initiatives necessary to provide the MCC such guarantees, support and operating environment for the projects to be undertaken in a manner mutually acceptable to the parties and not prohibited by law.

The LRT system that will serve the coastal build-up area of Davao City as well as neighboring areas in Davao del Sur particularly the municipality of Sta. Cruz and Davao del Norte in Panabo City will costs around US$4.49 billion or P240 billion based on 1997 project cost estimate.

The Samal bridge construction with project cost of US$126.9 million or P6.48 billion is about 1,200 meters long of lanes bridge at about 22 meters vertical clearance with suspension of cable-stayed.

A pre-feasibility analysis of the project is available for full blown feasibility study.

Del Rosario however vowed to support the project and to work with the local government units.

Kasim on the other hand said their intention of generating the funds is through the flotation of bonds saying that there are international buyers looking for investment packages.

He said international buyers are attracted to buy bonds that will fund projects especially in countries like the Philippines.

The Philippines he said is attractive to buyers globally and this is an opportune time that sectors like the local government units should consider seriously.

There will be series of briefings and discussions among the LGUs with regards the scheme that will be undertaken and the Department of Trade and Industry is taking the lead of encourage the municipalities to come up with their respective proposals.

By the first quarter of 2008, the parties will consult and coordinate with each other and come up with action plan for the projects to be undertaken.