China will make its first investment of 31 billion yuan (US$3.7 billion) this year to develop the infrastructure in its western regions, it was announced on March 16.

The money will be used to speed up the ongoing construction of 78 large and medium-sized projects.

China will also kick off construction of an additional 10 large projects this year and make preparation for another five, said the minister of the State Development Planning Commission (SDPC).

However, Zeng Peiyan did not know how much the projects will cost at this point because more study is needed.

Local governments in the west regions and ministerial departments of the State Council are in the process of drafting long-term development programs and the SDPC will map out an overall blueprint for the region by the end of this year.

Zeng, who is also director of the West Development Office of the State Council, said his office is studying relevant policies such as finance, taxation, investment and pricing raised by various government departments.

Emphasis will be put on developing science, technology and education.

The development policy will not cover areas with fragile ecological conditions to protect the environment, he said.

The development of the country's vast western regions is a front burner issue for China. Establishment of the West Development Office is to guide and co-ordinate works among different departments.