The total budget for the project is Yuan 141.2bn ($US 19.8bn), including Yuan 7.7bn for rolling stock.
The project encompasses a 681km main line with an 18km branch from Yibin to Zigong, the third largest city in Sichuan province.
The line will have a design speed of 350km/h and will be equipped with the CTCS Level 3 train protection system.
Construction is expected to take six years to complete.
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