China China Nanning-Kunming Railway Lianyungang Port Xugou Area Construction Project First Phase Construction Project

Bridge between Kunming and Kunming South, Nanning-Kunming Line Lianyungang Port

■Outline of Loan Agreement ■Outline of Loan Agreement Loan Amount/ Loan Loan Amount/ Loan Disbursed Amount ¥57,696 million / ¥40,776 million Disbursed Amount ¥5,900 million / ¥4,898 million Loan Agreement October 1991～January 1995 Loan Agreement October 1992 Interest rate: 2.6%, Interest rate: 2.6%, Terms and Conditions Repayment period: 30 years (grace period: 10 years) Terms and Conditions Repayment period: 30 years (grace period: 10 years) Final Disbursement Final Disbursement Date (Final loan agreement is under disbursement) Date November 1997

■Project Profile ■Project Profile The project was to construct a new electrified line on the route The project was to construct berths at Lianyungang Port, from Kunming to Nanning (the Guiyang-Kunming Line), which Jiangsu Province with total handling capacity of 2.1 million tons was saturated, to increase the transport capacity of the line and per annum, able to serve vessels of up to 15,000 tons. The berths thereby expand the supply of resources such as coal, cokes and were required to meet rapidly growing demand for general goods phosphorous ore to the South and the coastal industrial zone. caused by the country s economic progress.

■Results and Evaluation ■Results and Evaluation The Nanning-Kunming Line constructed under the project Freight handling has been steady since the completion of the takes the shortest route from Yunnan Province to the Guangshi facilities, reaching a volume above the initial target. In addition to Zhuang Autonomous Region. The line opened at the end of 1997 general goods (light industrial products, medical supplies and and the volume of freight carried on the line has been expanding agricultural, forestry and fisheries products etc.), large volumes of steadily from 1998. In particular, freight from Kunming to non-metallic ores, coal, salt and other materials have been Nanning in 2000 (15.62 million tons/year) has already exceeded handled. the volume forecast for 2005 (13 million tons/year). On the other Lianyungang Port handles freight in both directions for its hand, freight volume on the existing line dipped in 1998 before wide hinterlands, which extend through Jiangsu, Henan and recovering in 1999. Therefore the project has helped to Shandong Provinces and beyond. Combined with the building of supplement the transport capacity of the existing line. a transport network, mainly of railways, it can be inferred that the Maintenance work was transferred to the jurisdiction of the development of the port under the project has made a contribution Kunming Railway Administration in April 1997. Maintenance is to the development of the port s hinterlands. conducted within the budget allowed, but the transfer of assets Operation and maintenance is conducted by the No.4 Port from the Ministry of Railways to the regional Railway Corporation, which is under the Lianyungang Port Authority. The Administration has not yet been completed. Corporation is now being assigned staff from the various departments and factories of the Port Authority for enhancement of organizational strength. Given the current level of profitability, it will take a long period of time to recoup the investment. The facilities will become more economic if the freight handling volumes continue to rise, and the project appears to be sustainable.

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