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Overview

Chinese Government signs for grant for the Muse-Mandalay High-Speed Railway Project

Commitment Year2018Country of ActivityMyanmarDirect Recipient Country of IncorporationMyanmarSectorTransport And StorageFlow TypeGrant

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2018
Start (planned)
Oct 22, 2018

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • Unspecified Chinese Government Institution

Receiving agencies

State-owned companies

  • Myanmar Railways

Implementing agencies

State-owned companies

  • China Railway Eryuan Engineering Group Co., Ltd.

Loan desecription

Chinese Government signs for grant for the Muse-Mandalay High-Speed Railway Project

Narrative

Full Description

Project narrative

On October 22, 2018, two state-owned companies, China Railway Eryuan Engineering Group (CREEG) (formerly the China Railway Group Ltd.) and Myanmar Railways signed a memorandum of understanding to begin the study on a proposed rail line from Muse to Mandalay (MOU is known as "中缅签署木姐−曼德勒铁路项目可行性研究备忘录"). In April 2019, during the Second Belt and Road Forum for International Cooperation (BRF), China Railway Eryuan Engineering Group (CREEG) handed over the Feasibility Study Report (Technical Part) of the Muse-Mandalay Railway to the Ministry of Transport and Communications of Myanmar. The managing director of Myanmar Railways U Ba Myint said in a press conference in Naypyitaw that the construction of the railway will cost $8.9 billion according to the study; however, the amount of Chinese financing provided for this project is unknown. On January 18, 2020, the environmental evaluation part was handed over, and the feasibility evaluation was completed. The current status of the project is unknown. As of June 2020, China Railway Eryuan Engineering Group (CREEG) has applied to conduct feasibility studies for a railway between Mandalay and Kyaukphyu, Myanmar, which is part of the larger Muse-Mandalay Railway. The Muse-Mandalay-Kyaukphyu railway project is two proposed railways that make up the Myanmar section of the China-Myanmar railway. The two sections in Myanmar are Muse to Mandalay, and Mandalay and Kyaukphyu. As one of the flagship projects of the Belt and Road Initiative and the China-Myanmar Economic Corridor, the Muse-Mandalay Railway passes through the important town and economic center of northern Myanmar. It has a total length of 431 kilometers (268 miles) and a design speed of 160 km/h. The Mandalay-Muse railway project will connect with the Chinese rail network at the border town of Ruili in Yunnan province. It is expected to be a key part of the economic corridor. The economic corridor spans 1,700km – from Kunming to Mandalay, then east to Yangon and west to the Kyaukpyu special economic zone in Rakhine state, where China wants to build a deep water port and where it already has a cross-border oil pipeline.