Baidu has won a bid to participate in the construction of a 105 million yuan ($16.1 million) 5G-based intelligent driving project in Chengdu, in the latest effort to market its self-driving technology as the search engine giant seeks to diversify its revenue streams.

The agreement will see Baidu build a demonstration zone in the capital city of West China’s Sichuan province featuring an autonomous driving infrastructure network which will play a role in the R&D, testing and commercialization of 5G-enabled smart connected vehicles, the company said in a statement released on Wednesday.

As part of the deal, Baidu will also build demonstration roads totaling 30 kilometers in length in the Singapore-Sichuan Hi-Tech Innovation Park, which will be used to trial its robotaxi and robobus services in the city, according to the statement.

The project is in line with Chengdu’s strategy to accelerate the development of artificial intelligence, 5G and smart transportation industries, with the city looking to consolidate its position as a leading economic powerhouse for West China.

The announcement comes just days after Baidu started operating its second Apollo Park in Guangzhou as a test ground for autonomous vehicles and their applications in various scenarios. The first Apollo Park is located in Beijing, where Baidu is headquartered.

Contact reporter Ding Yi (yiding@caixin.com)

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