Eleven highway projects were unveiled Thursday in Central China's Henan Province by local officials in anticipation of largely increasing traffic through the region as a result of a campaign to put less developed western areas in the fast lane for economic growth.
The road schemes need an estimated 30 billion yuan (US$3.6 billion) from domestic or foreign investors before they are given the green light.
The government is also offering toll collection rights on two highways and a bridge on the Yellow River up for auction as part of plans to raise funds for the construction.
Rights are also being auctioned for the naming of landmark buildings and the erection of advertising boards along a key artery into Zhengzhou, the provincial capital.
Henan, traditionally seen as a garrison to other parts of the country, needs 40 billion yuan (US$4.8 billion) in the five years starting this year for roads projects.
The highways are expected to support the burden of traffic from a massive ongoing campaign to raise prosperity in the west and crack a bottleneck that has impeded economic growth of the province for years, according to Zhang Honghua, vice-governor of Henan.
Main road traffic in Henan has risen by 10 percent each year since the end of the 1980s, 30 percent of which is vehicles from outside the province, overloading 40 percent of its arteries.
"A jarring problem comes between our geographic advantage and a shortage of funds. We need new financing channels," Zhang said.
All the projects that are offered enjoy advantageous locations in the transportation networks of Henan and good profit prospects, he added.
These projects will also enjoy preferential policies ranging from taxation to land use, said Shi Faliang, director of the provincial transportation bureau.
The bids and auctions of the projects will be held in mid July in the Hong Kong Special Administrative Region.
Fixed assets investment to boost Henan's inadequate transportation capacity stood at 11 billion yuan (US$1.4 billion), Shi said.
The province expects 75,000 kilometres of roads by the end of 2005, which compares with 64,500 kilometres at the end of 2000. Total investment is estimated at 70 billion yuan (US$8.4 billion).
(China Daily 06/29/2001)
