Chinese Government provides RMB 800 million loan for Tengchong-Myitkyina Road Construction Project

Project narrative

In 2006, China Development Bank's Yunnan Branch reportedly provided an RMB 180 million loan to the Tengchong-Myitkyina Highway, also known as Baoshan - Myitkyina Highway. The final amount of financing from various Chinese state-owned entities for the project amounted to RMB 800 million. The total estimated cost for the China section of the road is RMB 430 million and RMB 580 million for the Myanmar section. China National Development and Reform Commission contributed RMB 36.5 million while China's Ministry of Communications contributed RMB 77.5 million. The Yunnan Provincial Government contributed RMB 100 million and the Tengchong Government RMB 70 million. And additional RMB 80 million was supplied by a state-owned investment company in Tengchong. The remaining project costs were to be raised through bank loans. Record ID#63764 captures the total amount of Chinese financing of RMB 800 million. On April 26, 2007, the 95-km Myanmar section of Tengchong-Myitkyina Road was completed. The project iswaspart of the repair and upgrade of Stilwell Road, also known as the North Section of China-India Road. The ceremony for the start of road construction was held on October 19, 2004 in Kanpaikte, and it was attended by local authorities from Myaitkyina and Tengchong. The contract to build the Tengchong-Myitkyina road was reportedly signed in Yangon on May 19, 2004. According to the contract, Tengmin Road Construction and Maintenance Co Ltd, based in Tengchong of Yunnan Province, would build the road under the build-and-transfer system, and it would take care of the road maintenance for 10 years. The Public Works Department of Myanmar will assume the maintenance work after the 10-year period has expired.