Mumbai: China is constructing a four-lane freeway from Korla to Kuqa, in northwest China''s Xinjiang Uygur autonomous region, as part of the central Asia highway network.

The freeway, a section of China''s No. 314 National Trunk Road, and covering a distance of 296.5 km, is estimated to cost 4.02 billion yuan ($503 million).

China''s central government will pay 1.5 billion yuan ($187 million), while the Asian Development Bank will lend $150 million. The local government will meet the rest of the cost.

The freeway is expected to promote economic growth and trade between China, and Central and Western Asian nations and even Europe.

ADB listed the Korla-Kuqa freeway as a key investment project to promote comprehensive economic growth in Central Asia during 2006-2008.

The project was approved by China''s the National Development and Reform Commission, an official from Xinjing Uygur Autonomous Regional Bureau of Communications said.