On June 25, 2009, the World Bank's Board of Executive Directors approved to provide $300 million to assist in the construction of the NanGuang Railway Project.
The project is part of China's economic stimulus program in response to the global economic crisis.
The NanGuang Railway Project aims to provide additional transport capacity and reduce transportation time between China's less developed southwest region and the relatively more developed Pearl River Delta region by connecting the existing railway networks in these two regions.
Specifically the loan will finance the construction of about 400 km of double track electrified railway from Litang West Station (about 95 km northeast of Nanning) to New Zhaoqing Station in Guangdong province; and partially finance 62 km of four-track railway being constructed between New Zhaoqing Station and Sanyanqiao Station (near Guangzhou).
The World Bank will provide international experience and advice in the process.
"The NanGuang Railway project will not only support further regional economic development by connecting the prosperous coastal region to the interior," said John Scales, Transport Coordinator from the World Bank Office, Beijing.
"But it also provides a platform for the continued high-level engagement that began 25 years ago between the Bank and the Chinese Government on railway development, while simultaneously supporting operational development of the Chinese railway network."
By People's Daily Online