HOHHOT — China 22MCC Group on Sept 21 signed an agreement on infrastructure programs with the municipal government of Erenhot, China’s largest hub for cross-border trade with Mongolia, marking the official beginning of construction on the China-Mongolia economic cooperation zone.

Under the agreement, China 22MCC Group is responsible for the construction of underground pipelines, office buildings, roads and plants within the Chinese section of the zone. The total investment for the projects is around 824 million yuan ($125 million).

Construction of the infrastructure will take two years, and China 22MCC Group will be the operator of the facilities for another 13 years.

In 2015, China and Mongolia agreed to dedicate nine square kilometers on each side of the border to a joint economic zone, which comprises land in Erenhot, Inner Mongolia autonomous region and Zamyn-Uud, Mongolia. In May 2016, the two countries formally agreed on a comprehensive plan for the economic cooperation zone, which is expected to bolster trade in the China-Mongolia-Russia economic corridor.

The zone is a all-inclusive platform integrating international trade, logistics and warehousing, e-commerce, tourism and entertainment, as well as international finance.