The Davao City Public-Private Partnership (PPP) Board has plans to submit a proposal to develop a Light Railway Transit (LRT) System project in Davao to the Philippine PPP Center,

The PPP Center wil review the project, which is expected to be approved as a national project for Davao City. The potential project was previously submitted to the the National Economic and Development Council (NEDA) for review but it was sent back due to the fact that this type of projects have to be reviewed by the PPP center.

Additionally, Davao City’s PPP board submitted the project to the Philippine Department of Transportation and Communication (DOTC) in October last year.

The project involves the development of a 28 km rail line that will connect the Davao International Airport in the north to the Toril District in the south. The line will run through the city’s main streets and will be built on the center road islands.

The line is planned to use 36 trains when completed by 2021 and the daily passenger volume is projected at 92,000 in 2021 and increasing to 253,000 by 2040.

The total project investment is estimated at P40 billion (US$842.3 million). Of them, P30 billion will be used to construct the new rail line while the remaining P10 billion will be used to land acquisition and contingencies.

The project is expected to solve the city's congestion problem, which is caused by the city’s increasing population and fast economic growth.