On Thursday the World Bank's Board of Executive Directors has approved two loans to the People's Republic of China -- US$300 million to assist in the construction of the NanGuang Railway Project and US$200 million to support Shanghai Urban Environment Project (APL Phase III).

The NanGuang Railway Project aims to provide additional transport capacity and reduce transport 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. This important project is part of the China's economic stimulus program in response to the global economic crisis. "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."

The Shanghai Urban Environment Project, the third phase of the Bank's Adaptable Program Loan (APL) started in 2003, will focus on increasing the secure provision of good quality water, reducing pollution load discharged without treatment into water sources, and facilitating sustainable investments in environmental infrastructure in suburban areas of Shanghai Municipality. Through the first two phases, the Bank supported several key infrastructure investments and institutional and policy reforms in the water, wastewater, and solid waste sectors. The new US$200 million loan will finance the construction of infrastructure projects such as Nanhui Raw Water Conveyor and Puxi Trunk Sewer, further contributing to Shanghai's goal of building a resource-efficient and environmentally sustainable city and hosting a successful "World Expo 2010: Better City -- Better Life". "The APL program has facilitated significant institutional and sector reforms, such as establishment of the District Financing Vehicle for financing utility investments in suburban district and issuance of the first corporate bond in China in the urban wastewater sector, in addition to financing environmental infrastructure investment," said Hiroaki Suzuki, task team leader and East Asia and Pacific Region Urban Sector leader.

(China Development Gateway June 26, 2009)