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China-DAC Study Group Infrastructure: The foundation for Growth and Poverty Reduction International Donor’s Contribution to China’s Infrastructure Development Hengshui-Shangqiu Railway Construction Project. September 19, 2010 Dr. Lin Jiabin, Deputy Director General

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September 19, 2010 Dr. Lin Jiabin, Deputy Director General

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September 19 2010 dr lin jiabin deputy director general

China-DAC Study Group Infrastructure: The foundation for Growth and Poverty ReductionInternational Donor’s Contribution to China’s Infrastructure Development Hengshui-Shangqiu Railway Construction Project

September 19, 2010

Dr. Lin Jiabin, Deputy Director General

Research Department of Social Development

Development Research Center of the State Council (DRC)

Railway projects supported by wb adb and jica 12 7 billion us 1979 2005

Railway Projects supported by WB, ADB and JICA12.7 billion US$ (1979-2005)

Investment (bil.US$)

WB 2.55

ADB 2.64

JICA 6.24

Others 1.26

Total 12.7

Source: NDRC(2009) China’s Experience with the Utilization of Foreign Funds 1979-2005

Source: WB map, ADB and JICA

Notes: Projects financed by WB and ADB during 2006-2010 are also shown on the map



China s capital investment in railway construction and the role of japanese oda loans

One hundred million yuan

Amount of capital construction investment

China’s Capital Investment in Railway Construction and the Role of Japanese ODA Loans

Loan amount Share

Japanese oda loans and tech nical cooperation to rail port sector in northern china

Japanese ODA Loans and Tech-nical Cooperation to Rail/Port Sector in Northern China

ODA Loan Projects Related to Trans-portation Systems for Coal and Other Cargo: 18 projects; total amount provided:581.3 bil. yen

Technical Cooperation:

Three-Port Master Plan (Qinghuangdao, Qingdao, Lianyungang)








Qingdao EconomicDevelopment Zone

Importing large scale thermal power plants with high combustion efficiency

Importing large scale thermal power plants with high combustion efficiency

Hejing, Shanxi

Sanhe, Hebei

Hancheng, Shannxi

Baogang, Shanghai

Ezhou, Hubei

Major impacts of oda loans and technical cooperation to rail port sector in northern china

Major Impacts of ODA Loans and Technical Cooperation to Rail/Port Sector in Northern China

1. Alleviating infrastructure bottlenecks for domestic demand of coal and export

2. Promotion of industrial development and guiding regional development

3. Accelerating GDP growth→Poverty alleviation

  • Provision of advanced technologies


    Introduced a number of advanced system and equipment under the Japanese ODA Loans through International competitive bidding such as electric locomotives and advanced coal handling equipment

    5. Transfer of institutional framework

    Introduced ODA loan procedures to Chinese relevant agencies such as the concept of feasibility studies, project cycles, procurement procedures, loan covenants, and ex-post evaluation

Hengshui shangqiu railway construction project a part of beijing jiulong railway jingjiu line

Hengshui-Shangqiu Railway Construction Projecta part of Beijing Jiulong Railway (Jingjiu Line)

Project Summary

The Project aims to expand the coal supply capacity to the southeast of China and its coastal industrial zones, and to strengthen the country's north-south transport capacity.

As the Project had been in-corporated into a new trunk line from Beijing to Jiulong (Kowloon, Hong Kong), it came to

bring about effects in inducing development along the route which were not anticipated before.


401km non-electrified, multi-track railway

・Loan Amount ¥23,603 million


September 1996

Operation and maintenance

Operation and Maintenance

・The Regional Railway Administrations, with two to ten (depending on their size) Railway Sub-offices under them, directly carry out the operation of the railways under their jurisdictions. Under this project, the three Sub-offices handled operation and maintenance in their jurisdiction.

・The on-site agencies of each Sub-office and their functions are as described below in the hierarchical diagram of the operation and maintenance system.

Alleviating infrastructure bottlenecks capacity improvement in coal transport system

Alleviating Infrastructure Bottlenecks- Capacity Improvement in Coal Transport System -

Hengshui-Shangqiu railway has played a significant role in improving coal transport and the energy situation in China.

Promotion of industrial development

Promotion of Industrial Development

・The creation of the Hengshui-Shangqiu railway, and especially its inclusion as part of the Jinjiu line, has been a major factor in developing industry in the regions along the line as these locations are now directly linked to major cites such as Beijing and Tianjin in the north and Guangzhou, Shenzhen and Hong Kong in the south.

・The government in Hengshui has developed its “North: Beijing, Tianjin / South: Hong Kong, Shenzhen” strategy for market development such as raising of chickens and pigs and its cultivation of vegetables and soybeans as major industries.

・The Liaocheng municipal government has been systematically sending labor to Shenzhen as part of its efforts to better develop human resources. The total number of people that have participated in this project topped 20,000 in recent years. The majority of the dispatched personnel are graduates from technical colleges and vocational schools.

Guiding regional development land utilization effect

Guiding Regional Development- Land Utilization Effect -

・All of the municipal governments along the Hengshui-Shangqiu railway have used the construction and opening of the Jingjiu line as an opportunity to carry out city development projects centered around new train stations.

・For example, the area of urbanization in Hengshui increased from 15 km2 before the opening of the train line to the current level of around 22 km2. The area of urbanization in Shenzhen, which is under the jurisdiction of Hengshui, was more than doubled from 7 km2 to close to 15 km2.

・The urbanization area in Shangqiu before the opening of the railway line was only 20 km2. However, the city government saw the opening of the Jingjiu line as a chance to further develop the city and invested 500 million yuan to construct eight roads within the city and increase the area of urbanization to 60 km2.

Accelerating gdp growth

Accelerating GDP growth

Economic growth in these regions was roughly 80% of that in the Jiaoji Belt prior to the opening of the Beijing-Jiulong railway line, but exceeded the Jiaoji Belt in some cases after the opening of this line.

Accelerating gdp growth increase in tax revenue

Accelerating GDP growth→Increase in Tax Revenue

All of the cities experienced growth rates in tax revenues exceeding those for their provinces.

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