The Erche Highway Project starts at Ershiligoukou in Huan County, connecting with the Tianmu Road of National Highway 211, passes through five townships—Hongde, Hudong, Chedao, Maojing and Lujiawan—and ends at Chelu Yaoxian on the Gansu-Ningxia border, connecting with Ningxia Provincial Highway 203. It has a total length of 99.2 km and an estimated total investment of 7.76 billion yuan. The main line is 78.9 km long and is built to the standard of a two-way four-lane Class I highway with a design speed of 80 km/h; three connecting lines totaling 20.316 km are set up in the three townships of Chedao, Maojing and Lujiawan and are built to Class II highway standards. The project started construction in January 2019. To date, a cumulative investment of 6.093 billion yuan has been completed, accounting for 78.52% of the total investment. All construction tasks are planned to be completed in 2021, and the road is scheduled to be completed and opened to traffic by the end of December.

The Erche Highway Project is part of the Jiaonan-Haiyan Highway, an east-west trunk line in the National Highway Network Plan (2013-2030). It is a connecting line for the under-construction Dabanliang-Qingcheng, Tianshuibao-Yonghe and Yinchuan-Guyuan expressways, and is also a coal and petroleum transport route and an inter-provincial outbound corridor for Qingyang City.