Shanxi plans to set up RMB 27-bln energy, transportation firm

Published: 10 Jun 2009 20:02:52 PST

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Jun. 11, 2009 (China Knowledge) - North China's Shanxi Province plans to establish an energy and transportation investment company in the province to boost railway construction, said the province's Vice Governor Li Xiaopeng on Tuesday.

The planned company, which will have a registered capital of RMB 27 billion, will be responsible for fundraising, investment and construction as well as asset management.

The local government will provide RMB 3 billion to the company, while another RMB 3 billion will be granted in the form of loans. The remaining funds will come from investments from large enterprises and other investors as well as market financing.

In the next two years, Shanxi Province, whose coal output accounts for one third of the country's total, plans to invest RMB 650 billion in development projects supported by the Chinese government, of which RMB 200 billion will go into the railway sector.

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