The construction of the Qinghai-Tibet railway will have a positive impact on the development of Tibet's diversified economy.
The railway project, being built in the Tibet Autonomous Regionin southwest China, is expected to generate economic returns in the amount of 4 billion yuan (480 million US dollars) for Tibet during the 2001-2005 period, according to predictions made by the local development planning commission.
The construction plan calls for a total investment of 16 billion yuan (1.9 billion US dollars) for the 554 kilometer section of the railway.
The regional development planning commission predicts that the railway project will create 100,000 jobs during its construction and more than 2,000 jobs once it begins operation.
The 1,956 kilometer Qinghai-Tibet railway will run from Xining,the capital of northwest China's Qinghai Province, to Lhasa, the capital of Tibet Autonomous Region. It will be the first railway to link Tibet with the rest of China.
The section linking Xining and Golmud City in Qinghai was completed in 1984. Construction on the 1,118-kilometer section connecting Golmud with Lhasa began in June 2001 and is expected to be completed by 2007.