Macquarie, the Australian bank that specialises in infrastructure investment, and financial services firm China Everbright are to form two funds that will seek to raise a total of US$1.5bn for infrastructure projects.

Both companies are to contribute US$100m of their own to the funds, one of which will be open to non-retail investors outside China, and the other to investors in the country. Both funds will back projects in the transportation and water utilities sectors.

Only once the money has been raised, will the funds start to choose specific projects for investment. The funds are expected to close to new investment in 2010.