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Deputy: Special construction bonds for West China

By Ou Xinfa and Li Yang| chinadaily.com.cn|Updated: March 16, 2015

A proposal from Li Min, a deputy of the National People's Congress, concerning the issue of special construction bonds for West China, where the economy is developing slowly due to unique geological conditions, has been raised during the two sessions.

The special construction bonds, aiming at the equalization of public service investment in West China, provide support for the region.

In the annual government report this year, the investment on shantytown reconstruction and railway and irrigation engineering will be focused on the central west to expand domestic demands.

A bunch of key projects about transportation, energy, irrigation engineering, ecology and civilian livelihood are under planning for construction in the west.

Costs on infrastructure construction, logistics, government operation and ecological construction remain high in Yunnan, Guizhou, Sichuan, Tibet and Chongqing municipality, Li said.

It is reported that 11 out of 14 poverty-stricken cluster areas are located in places with special geology and landforms, where 70 percent of impoverished people carry on their daily life.

The special construction bonds, which would be used for infrastructure construction and high-speed railway and hydraulic engineering, would be used to replace high-financing-cost debt stock.

The central government takes responsibility of bonds issue and repayment for the local government, which mirrors the central government's priority for West China, according to Li's proposal.

Differentiation support policies and a long-term support system should be introduced and improved for the economic and social development of West China to achieve national unity, harmony and a common well-off society by 2020.