CN-Natl Railway Project

closed

The National Railway Project will improve access to transport, strengthen economic growth, and reduce poverty in the northwest of China, while supporting as well efforts to reform China's railways. There are two main components, described as follows. The first component will finance the expansion of a key east-west railway corridor between Baoji, and Lanzhou (Bao-Lan line). This will be achieved by double-tracking, and upgrading the existing line, which includes land acquisition and resettlement, engineering and construction works - bridges, tunnels and culverts - and track installation. Although the Bank will not finance civil works for the Bao-Lan line, it will finance the procurement of rails, turnouts, bridge beams, and goods. Further detailed procurement includes survey and design, equipment for telecommunications, signaling, electrification and power supply, environment, maintenance and operation, and, track maintenance. The accrued interest during construction will be capitalized, to be financed by local funds. The second component will finance studies to support railway reforms, which includes studies on the cost model research of the passenger transportation enterprise, in establishing a wagon-ownership enterprise, and, on tools integration work. Finally, the loan will finance the front-end fee.