China to spend USD 40 bn on railways to support economy

China's top economic planning body has approved the construction of six railways expected to cost some 250 billion yuan to support the faltering economy, a report said today.
The National Development and Reform Commission (NDRC) hopes the spending on the lines extending more than 1,000 kilometers in total will "stabilise" economic growth, the official Xinhua news agency reported.
There will be four high-speed lines in the eastern provinces of Shandong and Jiangsu, and in the northeastern province of Liaoning, as well as two rail transit systems in the southwestern cities of Chengdu and Nanning, it quoted the NDRC as saying.

No information was given on how the central and local governments will fund the lines.
A separate NDRC document released Monday said there are plans to promote public-private partnerships to attract private capital into infrastructure construction.
China's gross domestic product expanded 7.4 per cent last year, the slowest since 1990. Growth weakened further to 7.0 per cent in the January-March period, the worst quarterly result in six years.

Authorities have taken a series of steps to stimulate the economy, including an interest rate cut this month -- the third in six months.
The NDRC said earlier this year that it would give investment a "key role in stabilising economic growth".

Last year the commission approved transport infrastructure projects worth 34 billion yuan including railways, roads, airports and waterways.