China launches $723 billion plan to boost infrastructure

BEIJING: China plans to invest $723.8 billion in the next three years to improve its well laid out infrastructure as part of efforts to halt the slowdown of the world's second largest economy.

The plan, jointly issued by the National Development and Reform Commission and the Ministry of Transport, aims to improve the rapid transit net, basic traffic net and urban transit net, establish an integrated transportation network and better leverage the fundamental role of combination advantage and network efficiency.

The action plan includes 303 projects covering railways, highways, waterways, airports and urban rail transit, with 131 projects in 2016, 92 projects in 2017 and 80 projects in 2018, state-run China Daily reported.

In terms of railways, China plans to invest 2 trillion yuan to promote 86 projects, build and rebuild about 20,000 kilometers of railway.

It also plans to invest 580 billion yuan, 460 billion yuan and 60 billion yuan respectively to promote 54 highway, 50 airport and 10 waterway projects.

When it comes to urban rail transit, China will promote 103 projects and build 2,000 kilometers of new lines, with investment of 1.6 trillion yuan.

China's economy has slowed down to 6.9 per cent last year and the government has set 6.5 to 7 per cent target for GDP this year.

The heavy investments in infrastructure were expected to contribute to reforms to halt the slowdown.