ADB loan helps expand China's railway network

The Asian Development Bank (ADB) is to loan China US$ 150 million to help expansion of the country's railway network in the less well developed Western region of the country.

The loan will help construct a 259 km-long electric railway line between Chongqing municipality and Lichuan city in Hubei province.

The Chonqing-Lichuan Railway Development Project will interconnect with other lines either built or being planned by the Chinese Government in an effort to bring sustainable growth and jobs to its underdeveloped western region, and to expand transport and trade corridors linking neighbouring countries.

The railway will become part of the shortest east-west route connecting major cities and ports in the eastern part of the country, including Shanghai, Qingdao, Wuhan, and Yichang, and to Chongqing and Chengdu cities in the west.

The ADB loan supplements US$ 1.53 billion in financing from the Ministry of Railways and the Chongqing municipal government, and a US$ 1.38 billion loan from China Construction Bank.

Eight new railway stations will be built, while access roads linking poor communities to the railway stations will also be constructed, providing small business opportunities in and around the stations, as well as giving tourism in Chongqing and Hubei province a boost.

By using electric locomotives carrying double-stack containers, the railway will sharply increase freight carrying capacity, lower energy costs, and reduce pollution.

The project will be owned and operated by a joint venture company set up between the Ministry of Railways and the Chongqing municipal government.

Commenting on the ADB loan, Manmohan Parkash, principal transport specialist with ADB's East Asia Department, said "Interior regions have not benefited as much from the country's sharp economic growth as the east. Aside from creating a faster, more efficient, and safe rail link, the project will generate employment, increase living standards, and reduce poverty."