The Asian Development Bank (ADB) is giving China a grant of US$500,000 for the construction of a new railway linking Lanzhou in northwestern Gansu Province to Chongqing in the southwest.

The project will involve the construction of 817 kilometers of electrified lines, much of it through mountainous terrain, and 21 new stations. Three quarters of the route's length will comprise tunnels and bridges.

According to the ADB, the project area will encompass 13 counties and cities with a total population of about 15 million, two thirds of which is rural.

Most people living in the area work in low-yield agriculture. Despite the area's rich natural resources and tourism potential, poverty is high as the people are cut off from mainstream development due to a lack of transport links.

The railway link will also connect Xinjiang to Yunnan, Lanzhou to Alashankou and Chongqing to Hekou, on the Vietnamese border.

"The railway will increase local people's access to jobs, markets and services and give them an opportunity to improve their living standards," says Manmohan Parkash, ADB Senior Transport Specialist and team leader for the project.

The project is a joint venture between the Ministry of Railways (MOR) and the Chongqing, Gansu and Sichuan local governments.

Parkash said ADB's strategy for China's railway sector was focused on expanding the network in underprivileged areas and modernizing key routes to improve transport efficiency.