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Rural infrastructure to be improved with new forms of financial support

Updated: Feb 17,2017 5:15 PM

The State Council issued a circular on Feb 17 to innovate the investment and financing system regarding rural infrastructure, in a bid to boost rural economic and social development.

Efforts will be made to break institutional barriers and encourage private investment in rural infrastructure, according to the circular.

The target of the plan is to build a diversified and robust investment and financing system that can dramatically improve rural infrastructure by 2020.

The investment system of rural infrastructure will be divided into three tiers.

Non-profitable infrastructure such as rural transportation will mainly be invested by government while private capital is also welcomed.

Investment in water supply, sewage and garbage disposal, and other profitable infrastructure will be jointly made by government and private sectors.

In addition, investment in construction of commercial infrastructure, including power supply and telecommunications, will mainly come from enterprises, and government will provide subsidies in poverty-stricken regions in need of such investment.

The move is not a temporary policy measure as, according to the circular, agriculture and rural areas are priorities of government financial support at all levels.

Government will play a leading role in the endeavor as different measures will be applied to support rural infrastructure, including direct investment, financial subsidies, and free building material supplies.

Besides government and social investment, people in rural areas are also encouraged to participate in rural infrastructure development.

Financial institutions, especially Agricultural Bank of China, will enhance financial support for rural infrastructure building.

Efforts will also be made to improve rural infrastructure management of highways, water supply, sewage and garbage disposal, power supply, and telecommunications, according to the circular.