Southern Yunnan Road Development


Project 30081-013
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Type Loan
Sector Transport
Country PRC
Start 1999
End 2005
Status Closed
Last Edited 05 Jul 2021


US$('000) 770,300

Project Description

The Southern Yunnan Road Development Project is located in Yunnan, a poor, interior, landlocked province where average gross domestic product and rural income per capita are two thirds of the national average. The Project is part of the 704-kilometer (km) Kunming to Mohan expressway whose central section (147 km) connects Yuanjiang with Mohei (the Yunnan YuanMo expressway). The objectives of the Project were to support economic and social development in the southern part of Yunnan province by removing a major road transport bottleneck between Yuanjiang and Mohei and helping to create the conditions necessary to reduce poverty by providing poor communities with better access to the economic mainstream. The Project was also designed to promote and extend sector reforms initiated under previous ADB-financed projects in areas related to (i) improved design standards and construction quality, (ii) road safety, (iii) pricing policy and road users, and (iv) nongovernment financing. A long-term objective of the Project is to promote regional economic cooperation in the Greater Mekong Subregion (GMS) by improving a section of the road linking Kunming in the PRC and Chiang Rai in Thailand and facilitating cross-border trade. The Project was classified as an economic growth project. Poverty reduction was listed as a secondary objective.

Progress (as of March 2021)

Project closed


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News and Multimedia

  • Promoted economic growth and poverty reduction in Yunnan province. Average growth rates of gross domestic product per capita in the counties of Mojiang, Pu-er, and Yuanjiang were 8.4%, 8.4%, and 20.0%, respectively, in 1999-2003.
  • External trade between the PRC and Lao Democratic People-s Republic, Myanmar, and Viet Nam has increased by 60%, 12%, 53%, respectively, compared with 2003 to 2004.
  • Removed serious congestion and deteriorating safety standards on the existing road by constructing a controlled-access, four-lane, toll expressway and more than 90% of traffic has diverted to the expressway.
  • Travel distance between Yuangiang and Mohei has decreased by 67 km and travel times have been reduced from about 8.0 hours to 2.0 to 2.5 hours.
  • Improve road safety as indicated by a decrease in the death rate of more than 26% in 2004 compared with 1999 and a further significant reduction in the first half of 2005.
  • Reduced delivery times for agricultural inputs and production within the project area by more than 60% following the opening of the expressway.