Venezuelan President Hugo Chavez on Sunday inaugurated a railway construction project in central Venezuela that will be built with Chinese technology and funding.

Chavez inaugurated the construction work of the Llanos railway during his Sunday TV-radio program "Alo, Presidente."

He said the project was financed by the Chinese-Venezuelan Strategic Fund, which was created on May 2008 to finance projects in energy, agriculture, transport sectors.

The cost of the project will surpass 800 million U.S. dollars, the president said.

The railway of around 470 km long, will connect the towns of Tinaco, El Pao, Ortiz, Chaguaramas and Valle de la Pascua with the state of Anzoategui, northeast Venezuela.

Constructed by Chinese and Italian companies, the railway line is part of the national railway system, which includes 15 lines totaling 13,600 km long.

The line is expected to start operation in middle 2012 with the highest train speed of 220 km per hour.

During the televised inauguration, Chavez talked with representatives from the Chinese and Italian companies and told them that the railway will render great help for the country's economic development.

Chinese Ambassador to Venezuela Zhang Tuo attended the inauguration ceremony, saying the railway will be one of the most modern in the world, thanks to the technology provided by the China Railway Group Ltd. (Crec).

Bai Zhongren, vice president of Crec de Venezuela, said the railway is expected to transport 9.9 billion tons of goods each year and 5.8 billion passengers.

"We believe that with our determination and China's advanced technology, we will be able to complete the project with success," Bai said.

The China Railway Group Ltd. ranked 342nd in Fortune Magazine's "Global 500" list in 2007. It has built railway of about 70,000 km in China.

Source: Xinhua