Spending on transport infrastructure looks set to increase following the central government’s recently announced Rmb4,000bn stimulus package designed to shore up the Chinese economy at a time of declining export orders. While much of the headline figure includes spending on projects that had already been pledged, it emerged that new money is being allocated to speed up construction of new roads and railways.
Lu Chunfang, Vice-Minister of the Ministry of Railways, said that investment in railways in the fourth quarter of 2008 would exceed Rmb150bn, which will account for nearly half the full-year total of Rmb350bn. Next year, the ministry plans to invest Rmb600bn, according to Yang Zhongming, the head of its planning department.
Since the beginning of October, construction has started on 11 major railway projects, including one from Shijiazhuang in Hebei province to Wuhan, Hubei province. Altogether, there are 150 major railway projects under construction nationwide.
He Jianzhong, a spokesman for the Ministry of Communications, said the pace of road building was also increasing. That ministry is set to make investments totalling Rmb300bn this quarter, bringing 2008 spending on highways to Rmb800bn. Some Rmb3bn will also be allocated on constructing small airports.