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NDRC allows private investors to build 1.97 trillion yuan projects
May 25, 2015, 6:49 am

The National Development and Reform Commission is the biggest, most powerful Chinese bureaucracy, with responsibility over broad swathes of China’s $8.5 trillion economy [Xinhua]

The National Development and Reform Commission is the biggest, most powerful Chinese bureaucracy, with responsibility over broad swathes of China’s $8.5 trillion economy [Xinhua]

China’s top economic planning agency approved plans for private investors to build and operate over a thousand projects in the country as it tries to stem the slowdown in the economy.

In an economic slowdown from the break-neck double-digit growth, the government is aiming to help curb a blowout in regional debt.

The National Development and Reform Commission (NDRC) on Monday published approvals for 1043 projects worth 1.97 trillion yuan ($317.75 billion) to be built by private players.

The NDRC has green-lighted a slew of transport and public-service projects.

“The project list covers many areas including water conservancy facilities, municipal facilities, transportation facilities, public services, resources and environment,” said a statement on the NDRC website.

This was announced ‘after carefully examining the establishment of a PPP project library” said the statement.

With this move, the government is seeking to lower local governments’ borrowing costs and slow the buildup of debt.

Chinese leaders are implementing the most sweeping economic-policy shifts since the 1990s while trying to sustain growth close to a target of 7 per cent this year.

Earlier last week, the NDRC announced that China has established a new investment company to help domestic enterprises invest abroad and encourage the export of the country’s industrial capacity.

The company was established with initial capital of $5 billion and is likely to out-value the Silk Road Fund, an infrastructure-oriented fund, said Gu Dawei, an official in charge of overseas investment department of the NDRC.

China is striving to strengthen industrial capacity cooperation worldwide to boost Chinese exports.

The National Development and Reform Commission is the biggest, most powerful Chinese bureaucracy, with responsibility over broad swathes of China’s $8.5 trillion economy.

TBP

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