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The Ministry of Railways has decided to have multiple investors in all its new sections as part of its financial reforms, a top official has said. Speaking at a national conference recently, Minister of Railways Liu Zhijun invited local governments, State-owned and private enterprises, social investment institutions and overseas funds to invest in the railways. The ministry will urge the three listed railway companies to get refinance, seek investors for State-owned railway transport companies, and raise the amount of construction bonds to be issued this year. Liu said the scale of jointly funded railway projects and the percentage of social funds in total investment both will grow this year. This is the first time that financial reforms have been listed among the ministry's annual working priorities, the Economic Observer has reported. Liu didn't elaborate on the plans, but the newspaper said several firms were eager to invest in the railways, and had already contacted China Railway Special Cargo Service Co and China Railway Express Co. Some foreign firms will probably invest in China Railway Container Transport Co, insiders have said, but the ministry has not confirmed it. Last year, Datong Qinhuangdao Railway and GuangzhouShenzhen Railway, too, raised 15 billion yuan (US$1.9 billion) and 10.3 billion yuan (US$1.3 billion) from the stock market. The ministry also raised 40 billion yuan (US$5.1 billion) through railway construction bonds. In the past few years, more than 30 provincial and municipal governments have signed collaboration agreements with the ministry, which last year also raised funds from them and domestic strategic investors. At least 70 social investment institutions and enterprises have signed deals with 26 jointly funded railway companies, creating 44 billion yuan (US$5.7 billion) in social equity funds, including 2.5 billion yuan (US$321.5 million) in private capital. According to the ministry's 11th Five-Year Plan (2006-10), 17,000 km of new tracks will be laid across the country at a cost of 1.5 trillion yuan (US$193 billion), double the amount spent during the previous five-year plan. The railways' move is "a big breakthrough", Citic Securities' Research Department Director Yu Jun said. The money raised from the stock market hit a record last year. (China Daily May 2, 2007) |
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