China, Mongolia Plan To Jointly Build New Highway For Coal Transportation

HOHHOT, Oct 5 (Bernama) -- A new highway linking China and Mongolia will be jointly built by the two countries, is expected to improve coal transportation as well as promote economic development in both nations, Xinhua said Tuesday citing a spokesperson as saying.

The 245 kilometres highway, costing 2.51 billion yuan investment (around US$375 million) will run from Mongolia's southwest Omnogovi Aymag Province to Ganqimaodu, a border town in China's Inner Mongolia Autonomous Region.

Two firms from China and Mongolia plan to set up a joint venture to be the main builder of the highway. The Mongolia firm will own 51 percent of the joint venture while the China firm the remaining 49 percent.

Construction of the highway is scheduled to be completed in two years, the official said, adding that the project plan had been submitted to the authorities of the two countries respectively.

Trade between China's Inner Mongolia Autonomous Region and Mongolia reached US$5.33 billion and jumped 33.5 percent year on year over the first eight months of this year.

As of Sept 22, around 5.24 million tonnes of coal had been transported to China via Ganqimaodu.

Source:Malaysian News Agency BERNAMA