The project will allow the efficient transport of coal from the project area to energy-deficient areas of Guizhou and neighboring provinces. It is also expected that the project will facilitate the establishment of coal-related industries in the project area, thereby creating employment and income-generating opportunities that will help to reduce poverty. The project is classified as having “economic growth” as its primary objective and “poverty reduction” as its secondary objective.
3. The main benefit of the project will be the net value added generated by the major planned expansions of coal production that the project is expected to induce. Benefits will also result from reductions in transport costs for existing freight and passenger traffic to and from the project area, and reductions in transport costs for traffic which is expected to transit the new railway in preference to other, longer railway routes.