The World Bank said on Wednesday it approved a $100 million transport infrastructure loan to China to help boost trade with Russia and Mongolia. The funds would help finance improvements to transportation systems in Inner Mongolia, China's third-largest province, whose northern border touches Mongolia and Russia, the Washington-based development lender said. "These improvements ... will lower transport costs, increase income from external trade, and raise incomes," the World Bank said in a statement.

It said the improved transport system would help China cope with a significant increase in the volume of international freight traffic in the region.

Under the project, China plans to build a cargo transfer terminal and to upgrade highway systems to ease imports and exports with Russia and Mongolia. It also plans to improve training programs.

Copyright Reuters, 2005