Hubei makes 12.06 trillion yuan investment in six sectors

07:36, March 25, 2010      

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Hubei Province so far plans to invest 12.06 trillion yuan ($1.85 trillion) for 37,600 projects in the future years, Xu Keqiang, director of the Hubei National Development and Reform Commission (NDRC) said Monday.

The investment amount is 10 times the province's GDP in 2009 which was 1.28 trillion yuan. This is the largest investment plan announced by a provincial government so far.

"Most of the projects will begin construction before 2012," said Wang Yuxiang, vice director of the provincial NDRC.

The money will be invested in six industries, including manufacturing, services and infrastructure construction. It is expected that infrastructure construction will receive 3.17 trillion yuan, or 30.6 percent of the total investment.

Also, the construction of infrastructure will be mainly focused on transportation, energy, city construction and development areas. According to the plan, transportation infrastructure will cost more than 1 trillion yuan, the largest investment in infrastructure.

"The development of Hubei will be mainly driven by investment in the long term, and the investment will contribute to more than 70 percent of the province's economic growth," Xu said.

Six trillion yuan is needed for projects that begin construction by 2012, of which 5 trillion yuan will come from sources such as the government's fiscal funds, loans, capital raised by enterprises, foreign capital and bonds issued.

The rest of the financing will come from the capital market. Xu said that the government will encourage and expand private investment.

Source: Global Times
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