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The World Bank recently approved a US$160-million loan for the China National Railway Project, which will upgrade the existing railway line between Baoji City in Shaanxi Province and Lanzhou City in Gansu Province, northwest China.

The project will finance the double-tracking and upgrading of the railway corridor between the two cities.

According to the World Bank's Resident Mission in China, this project will improve access to rail services, stimulate economic growth, and assist in poverty reduction in the northwest region of China. It will at the same time support the country's efforts to reform its rail system.

The project will assist the Ministry of Railways to pursue key institutional reforms and to develop and apply analytical tools tohelp set the stage for deepening the reform process.

The loan has a grace period of five years and a maturity of 20 years.