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Viewing cable 09CHENGDU81, CONNECTING THE SOUTHWEST: SICHUAN'S NEW ROADS PAVED WITH

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Reference ID Created Released Classification Origin
09CHENGDU81 2009-05-13 05:49 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Chengdu
VZCZCXRO2842
RR RUEHGH RUEHVC
DE RUEHCN #0081/01 1330549
ZNR UUUUU ZZH
R 130549Z MAY 09
FM AMCONSUL CHENGDU
TO RUEHC/SECSTATE WASHDC 3206
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHCN/AMCONSUL CHENGDU 3879
UNCLAS SECTION 01 OF 03 CHENGDU 000081 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP/CM 
 
E.O. 12958: N/A 
TAGS: ECON EFIN SOCI PGOV CH
SUBJECT: CONNECTING THE SOUTHWEST: SICHUAN'S NEW ROADS PAVED WITH 
QUAKE MONEY 
 
REF: CHENGDU 069 
 
CHENGDU 00000081  001.2 OF 003 
 
 
1.  (SBU)  This cable contains sensitive but unclassified 
information -- not for distribution on the internet. 
 
 
 
2.  (SBU)  Summary:  Economic stimulus and earthquake 
reconstruction money will fund rapid transportation network 
expansion in Southwest China's Sichuan province over the next 
three years.  Many of the newly planned transportation links 
will cover the quake zone, assisting recovery in 36 counties. 
Increased air and rail links into Tibetan areas comprise a 
significant portion of the planning.  The transportation 
upgrades are aimed at improving Sichuan's connections to 
neighboring provinces and strengthening Chengdu as a regional 
transportation hub.  Beyond 2012, provincial transportation 
infrastructure plans are even more ambitious, including a major 
new airport and a direct Chengdu-Lhasa railway.  Protectionist 
inclinations in neighboring provinces and the limited human 
resource capacity will likely present challenges to these 
ambitions, while controversy may dog plans in Tibetan areas. 
End summary. 
 
 
 
By 2012: 60% more expressways, 20% more railways, 3 new airports 
 
--------------------------------------------- ------------------ 
 
 
 
3.  (SBU)  During an April 15 meeting with Congenoffs, Yue Wen, 
Deputy Director of the Sichuan Development and Reform 
Commission's (SDRC) Transportation Division, laid out the 
provincial government's new planning for expansion of 
transportation links between now and 2012.  Earthquake recovery 
and economic stimulus planning have been added to development 
already envisioned under the current five-year program, the 
eleventh, which runs through 2010.  The latest iteration of 
transportation expansion planning calls for a total investment 
of 660 billion RMB (nearly USD 100 billion) for the construction 
of eight new expressways, nine new railways, and three new 
airports, and will increase the length of road, rail, and river 
transport by nearly a third from 230,000 kilometers to 300,000 
kilometers.  Total expressways (gaosugonglu) are to increase by 
over 60 percent from 2,160 kilometers to 3,500 kilometers; 
railway length is to grow by 20 percent from 3,000 kilometers to 
3,700 kilometers; and new airports are to be built in Leshan, 
Yading and Hongyuan bringing the province's total to fourteen. 
Some smaller projects, such as non-expressway roads and river 
transportation infrastructure are also included. 
 
 
 
Current construction in Chengdu: new rail lines and major 
airport expansion 
 
--------------------------------------------- ----------- 
 
 
 
4.  (U)  Sichuan's transportation infrastructure push is well in 
evidence in Chengdu where the city's first metro line is due for 
completion next year, and a second line should be open by 2012. 
The provincial government's website highlights the progress of 
current construction on several new rail lines linking Chengdu 
with the rest of the province.  For example, construction on a 
new high-speed rail line from downtown Chengdu to Dujiangyan, a 
quake-hit city of 600,000 in northwestern Chengdu, began late in 
2008 and is due to be completed by May 2010.  Chengdu's 
Shuangliu Airport began construction on a second runway in 
December 2008, which is due for completion this year; a 
corresponding new terminal is planned for completion in 2011. 
Once this expansion is complete, Chengdu's air passenger 
capacity will leap from the current 16 million to 38 million. 
(Note: at present, only Beijing, Shanghai and Guangzhou airports 
have second runways.  Chongqing is also in the process of 
expanding its airport and its officials, along with Chengdu's, 
have said their city's airport will be the first in Southwest 
China with two runways.) 
 
 
 
Reconstruction and stimulus fueling transportation expansion 
 
--------------------------------------------- ----------- 
 
CHENGDU 00000081  002.2 OF 003 
 
 
 
 
 
5.  (SBU)  Yue emphasized that the current transportation 
planning is closely linked both with earthquake reconstruction 
planning and economic stimulus.  The included projects are all 
due to start during calendar year 2009 and will add many new 
transportation links throughout the earthquake zone, assisting 
recovery work in 36 quake-hit Sichuan counties.  SDRC details on 
the budget breakdown are fuzzy, but Yue confirmed that funding 
for the 660 billion RMB 2009-2012 plan will come from a variety 
of sources, including normal central and provincial government 
budget allocations along with quake reconstruction and economic 
stimulus funds.  Assistance from other provinces for earthquake 
reconstruction will provide support for some county-level road 
projects. 
 
 
 
Toward 2020: building a regional transportation hub 
 
--------------------------------------------- ------ 
 
 
 
6.  (SBU)  The planned transportation links highlight the 
Sichuan government's ambitions to transform Chengdu into a 
regional transportation hub, with particular emphasis on linking 
the inland province with trade opportunities tied to improved 
road connections from Yunnan Province to Southeast Asian 
countries.  Three of the eight expressways in the current plan 
will link to Yunnan.  Beyond 2012 the provincial government's 
goals are even more ambitious, including an additional doubling 
of expressways and railways.  By 2020, they plan for expressways 
to reach 8,600 kilometers, railways 8,000 kilometers, and for a 
total of 17 provincial airports.  Yue noted that Sichuan 
Province Communist Party Committee Secretary Liu Qibao is 
particularly focused on the 2020 goals. 
 
 
 
7.  (U)  Another indicator of Sichuan's ambitions is the 
planning for a second, much larger Chengdu airport.  The new 
airport, to be built about 50 kilometers southwest of downtown 
Chengdu, will have six runways and be able to accommodate annual 
traffic of 85 million passengers -- over twice as many as the 
upgraded Shangliu airport -- and two million tons of freight, 
say Sichuan officials.  Jintang County government officials note 
that site selection and design are still in process and may take 
at least another two years. 
 
 
 
Two Tibetan Area Airports and the Chengdu - Lhasa Railway Begins 
Soon 
 
--------------------------------------------- -------------------- 
 
 
 
8.  (U)  Two of the three airports due to be built by 2012, 
Yading and Hongyuan, are in Tibetan areas of Sichuan (Yading is 
a natural reserve area in Ganzi Autonomous Prefecture; Hongyuan 
is in Aba Autonomous Prefecture).  Additionally, upcoming 
railway projects will link Chengdu directly with the Tibetan 
Autonomous Region and Tbetan areas of Sichuan and Gansu 
provinces.  According to local media reports, the Ministry of 
the Railway and the provincial government on January 10 signed 
an agreement to accelerate construction of railways, including a 
new line from Chengdu to Lhasa.  Construction on the 
Chengdu-Lhasa railway is to begin this year, and will take eight 
years to complete at a cost of 53.78 billion RMB.  It will run 
via Aba Autonomous Prefecture, then through Qinghai and 
Xinjiang.  The new line from Chengdu to Lanzhou will also run 
through Aba and will cover Tibetan areas of Gansu.  The, rail 
links into Tibetan areas, especially the Chengdu-Lhasa line, are 
expected to be controversial for both social and environmental 
reasons. 
 
 
 
Too ambitious?  Provincial protectionism and limited capacity 
could check progress 
 
--------------------------------------------- -------------- 
------- 
 
CHENGDU 00000081  003.2 OF 003 
 
 
 
 
 
9.  (SBU)  Protectionist inclinations in neighboring Yunnan as 
well as limited human resource capacity may present important 
challenges to Sichuan's ambitions.  As discussed in reftel, the 
deterioration of road quality of the Yunnan portion of the 
current single Sichuan-Yunnan expressway seems linked to both 
protectionism and highway funding problems.  As highway links 
from Yunnan to Southeast Asia expand, protectionism in Yunnan 
Province will likely be a continuing problem for Sichuan 
Province.  The subpar workmanship reftel notes on newly built 
Sichuan expressways, partially due to  poorly qualified project 
managers, raises questions on whether Sichuan will be able to 
accomplish its very ambitious road network expansion plans while 
maintaining its current road network. 
BOUGHNER