January 25, 2008 -- The World Bank has approved a US$100 million (723 million yuan) loan for a Guiyang transportation project, the bank announced Jan. 8.
The project will support a four-year infrastructure investment in Guizhou province.
The total cost of the project is about US$292 million (2.1 million yuan).
"The project includes three components. Youxiao Road, which is an urban expressway connector, ural transport, which covers rural roads and rural bus stations, and institutional development," John Scales, the World Bank transport sector coordinator in Beijing and the Guiyang transport project lead, told Emerging China.
Guizhou province is a poor province, with the lowest per capita GDP in China, situated within the under-developed south central region of China, according to Scales.
"Guiyang's leadership is keen to work with the bank to improve the delivery of transport services and improve its institutions," he said.
The Guiyang municipality has taken a progressive approach to development of its urban core and its integration with the rural portions, he said.
In addition, a primary concern of this project is the creation of environmentally and financially sustainable transport systems, according to Scales.
The Guizhou Provincial Communication Department, declined to comment on the issue. However, according to experts, the region poses particular challenges when it comes to infrastructure.
"Guiyang is located in mountainous areas, which is not conducive to highway construction," Qiu Yan, a professor at the college of traffic and transportation at Southwest Jiaotong University, told Emerging China.
Residents are disconnected from the outside world, especially when compared with the relatively developed regions around it, like Sichuan province and Chongqing municipality, said Yan.
"The financial support from the World Bank will help to improve the transportation situation in Guiyang significantly," she said.
According to the World Bank, the organization works together China's Ministry of Finance and the National Development and Research Commission to select projects based on factors such as poverty alleviation and sustainable and equitable economic development.