The Heilongjiang branch of China's Exim Bank has allocated CNY600 million (over $96.5 million) for the construction of the Chinese section of a railway bridge across the Amur River that will connect the Chinese city of Tongjiang and the city of Nizhneleninskoye in Russia's Jewish Autonomous Region, the region's Applied Economics Association told Interfax.
The Exim Bank conducted an inspection of the construction site, determined the demand for financing and issued a loan of CNY400 million for the project and a loan of CNY200 million to the contractor, the fourth engineering company of China Railway, the association said, citing information from the bank branch.
As of the beginning of April, China had invested CNY952.44 million (about $153.7 million) in the project. The total amount of investment planned by China is estimated at CNY2.642 billion.
China expects the Tongjiang bridge to reduce the distance for shipments through Heilongjiang province to Khabarovsk and Moscow. The Chinese section of the project is being carried out by Tongjiang Railway Company, a division of China Railway. The Russian section is being carried out by LLC Rubicon, which was purchased for 174 million rubles ($3.4 million) in November 2014 by subsidiaries of the Russian Direct Investment Fund (RDIF) and China Investment Corporation from IRC, a subsidiary of gold miner Petropavlovsk that is the only iron ore producer in Russia's Far East.
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