China plans to invest 720 billion CNY (116 billion USD) in its railways this year, with more projects to start construction, the country’s rail chief said.
The investment, a rise of 20 billion CNY than originally planned, will cover the construction of 48 projects this year, up from 44 in the previous plan, the People’s Daily quoted Sheng Guangzu, general manager of China Railway Corp as saying yesterday. His remark was in response to talk that a capital shortage has caused delays in railway development.
The railway operator also plans to put more than 7,000 kilometres of new lines into use this year, up from 6,600 kilometres previously.
The State Council, China’s Cabinet, said earlier this month that it encourages banks to lend to rail projects as part of efforts to broaden financing channels. Meanwhile, the government will create an annual rail development fund of 200 billion CNY to 300 billion CNY that welcomes private investors.
“By accelerating railway construction, (we) can increase the effective demand of steel, cement and other building materials while absorbing overcapacity,” Sheng was quoted as saying.
In January, Sheng said China has earmarked 630 billion CNY into fixed-asset investment for railway development. That’s on top of a 70 billion CNY investment planned from the private sector, the People’s Daily said.
Rail investment rose 9 percent to 61 billion CNY in the first quarter, Sheng said.
.jpg)
China plans to invest 720 billion CNY (116 billion USD) in its railways this year, with more projects to start construction, the country’s rail chief said.
