The new airport will be constructed at Qiaoshiying Town in the Horinger County, which is about 40 km away from the city center, with a designed capacity of 28 million passengers and freight traffic of 320,000 tonnes each year. The proposed NDB loan through the modality of Sovereign Project loan will be used by the Government of the People’s Republic of China for onlending to the People’s Government of Inner Mongolia for the construction of the new airport.

The objective of the Project is to finance the construction of the new airport in Hohhot City to meet the growing demand of air traffic by 2030 and support the socioeconomic development of the region. The Project’s output will be construction of a new airport in Hohhot City.

The Project is estimated to be implemented over 5 years. Hohhot Airport Construction, Management and Investment Co., Ltd. will be the Project Implementation Agency. Contractors for the Project will be selected through a competitive and transparent bidding process.

The positive impacts of the Project include: (i) reduced travel time for passengers; (ii) enhanced efficiency for freight traffic; (iii) reduced noise pollution for the residences in Hohhot city, as the new airport replacing the Baita International Airport will be outside of the city center; (iv) enhanced safety standards for passengers and reduced accidents; (v) business development in the scarce land space close to the city center, where Baita International Airport is currently occupying; (vi) enhanced airport environment for passengers; (vii) boosting economic activities in Inner Mongolia, including China-Russia and China-Mongolia bilateral trade cooperation, tourism development. The Project has been classified as Category “A” in accordance with NDB Environmental and Social Framework and China’s environmental impact assessment regulations. The key environmental and social impacts identified mainly pertain to resettlement, land acquisition, biodiversity, water quality, noise and air pollution. Mitigation measures are in place to address the negative impacts and the risks. NDB will monitor the Project closely and engage with the Project Implementation Agency during implementation.