The project will improve rail capacity by rehabilitating and modernising the existing line and related facilities along the 260km Yangon - Toungoo section of the double-track 620km metre-gauge Yangon - Mandalay line.
Work on the Yen 49.2bn project is due to begin in December 2023, although no completion date has been set. The project includes:
- civil engineering work, including rehabilitation and construction of new civil engineering structures such as track, bridges, and a depot
- railway systems, including the improvement of signalling and telecommunication systems
- rolling stock, including procurement of 24 new trains
- electric power facilities, including a 66kV/6.6kV substation, and
- consulting services, such as tender assistance and construction supervision.
When completed, the project is expected to increase patronage from 3.3 million passenger-km/day to 27.5 million passenger-km/day, while freight volumes are expected to increase from 2.7 million tonne-km/day to 15.8 million tonne-km/day.
The loan has a 40 year repayment period, with a 10 year grace period.
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