Zhejiang public projects to attract private capital

Plans by the Zhejiang provincial government to introduce 441 public projects worth more than 1.18 trillion yuan ($186 billion) last week particularly aimed at private investors have received mixed reviews from companies.

The provincial government said on Thursday that the projects will fall into eight categories, including industrial upgrade, transport, energy and urban construction.

Those pertaining to industrial upgrade will be worth 437 billion yuan, the greatest among the eight categories.

"The plan will give private investors more opportunities, especially to encourage owners of small and medium-sized enterprises to put their money into reliable government projects that offer solid returns," said Sun Jingmiao, the director of Zhejiang provincial development and reform commission.

Sun said private investors will also be given the opportunity to invest in lucrative projects in financial services and the railway industry.

The projects selected have been added to the provincial government's 12th Five-Year Plan (2011-15), mostly because they have yet to attract interest from the private sector.

However, companies are lukewarm about the plan.

"I'm not sure that I'll pay a lot of attention to the possibility of investing in these projects, which probably won't generate substantial return," said Zheng Chenai, chairman of Zhejiang Aobenni Garment Group Co Ltd.

Zhou Dewen, chairman of the Wenzhou SME Development Association, agreed with Zheng.

"Most of the projects introduced by the government offer little hope of good return and aren't likely to draw interest from private investors," Zhou said.

He praised the provincial government for recognizing the importance of tapping investment from private business, noting that many were cautious after the province experienced a credit crisis last year.

Some businessmen said they are eager to see the government provide more projects of a similar type.

"The projects introduced by the government definitely will be more reliable than private projects," said Pan Jianzhong, chairman of Wenzhou Juyi Group Co Ltd, a shoe manufacturer.

"If a good opportunity arises, I'll put my money on the energy industry."

Pan said he is looking forward to seeing the government introduce more projects for private investors soon.