A Rmb2.51bn highway connecting China and Mongolia is expected to be built jointly by the two countries, Xinhua reported.

Some 245km long, the new road will run from the southwest of Mongolia to Ganqimaodu, a border town in China’s Inner Mongolia autonomous region, said a regional government official.

Two firms from China and Mongolia plan to set up a joint venture, which will be the main builder of the highway. Construction is scheduled to be completed in two years.

The new highway is designed to facilitate coal transportation between the two countries, as well as promote regional economic development, the official said.