Measures are being drawn up to attract investors to China's 2 trillion yuan (US$250 billion) railway expansion.The Ministry of Railways is fast-tracking legislation to encourage foreign and domestic firms to invest in railway construction projects, said a spokesman. For the first time, the ministry plans to give investors more say in ticket and freight pricing, said Wang Yongping.

Other measures include setting up a transparent system to ensure railway companies receive a fair share of ticket revenues. Meanwhile, three new regulations will be drafted to ensure foreign and domestic investors are clear about how to get into the railway construction and transportation industry, said Wang in a recent interview.

The moves are part of the creation of a new railway financing mechanism, which the ministry hopes will help it fulfill its long-term goals. By 2020, China plans to build an additional 100,000 kilometres of track at an estimated cost of at least 2 trillion yuan (US$250 billion).

To fund the network's expansion, the ministry needs to find an average of 250 billion yuan (US$31 billion) every year, at least twice the current annual investment in railways. To bridge the funding gap, the ministry has mapped out a plan to push forward changes in the financing mechanism during the 11th Five Year Plan (2006-10). As well as attracting increased private foreign and domestic investment, the ministry aims to encourage railway companies to restructure and list on the stock market.

Source:佚名