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The Department of Transportation (DOTr) is working with engineers and the Asian Development Bank (ADB) for this project.
The cable system may be built on the LRT 2 Santolan Station (Marikina) to the Ortigas business district, the DOTr said.
The government of France allotted P27 million for the study of the project.
"The technology is very, very feasible in terms of relieving congestion and being able to provide high quality transportation service," a consultant for the project said.
The study, which started in August this year, is expected to be completed in December.
"One of the main goals of this study is to show, to explain, that this system is not just for tourism. That this system has a valuable and prospect idea for urban transport," ADB senior railway specialist Ruediger Zander said.
If the feasibility study would have positive results and gain the approval of the government, the project could be completed in one to two years.
"It has to compete with jeepney fares. So you cannot charge more than what people are used to (paying)," Zander said.
Transportation Secretary Arthur Tugade on Wednesday offered a P26 million deal for a cable car system from La Union to Baguio City.
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