China Eximbank offers $245 million loan for the construction of a 56 km railway track [Cancelled]
Constant 2017 USD
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Funding agency [Type]
Export-Import Bank of China [State-owned Policy Bank]
Transport and storage (Code: 210)
China initially signed an agreement to provide US$ 245 million loan for the construction of a 56-kilometre railway track from Pallai (located on the northern edge of mainland Sri Lanka) to Kankesanthurai in the Jaffna peninsula. China Railway Number Five Group was also supposed to carry out the construction for the railway track.Perhaps due to opposition regarding the high cost China has placed for the project (See articles by 'Tamil News Network' and 'FTDaily') and , in the resource section), the loan agreement is suspended. Instead, based on the 2011 Report on the 'Northern Province Development, the Indian government has agreed to finance the construction of the 56-km railway track; Indian Rites and Indian Railways Construction Company (IRCON) were given the contract to build the railway. The line between Pallai and Jaffna was re-opened on 13 October 2014. The final stretch of the line, between Jaffna and Kankesanthurai, was re-opened on 2 January 2015.
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