State Council issues guideline on promoting railway construction

The State Council released a guideline Monday on the website of the central government on promoting railway construction by investment and financing reform.

The government will encourage investment of social capital in railway construction in different ways, including setting up railway development funds and issuing bonds.

The guideline calls for accelerating the railway construction as designated in the 12th Five-Year Plan (2011-15) and striving to exceed the investment target of 2013.

In terms of investment and financing reform, the government plans to fully open railway construction market and adopt categorized investment on new projects. The ownership and operation of intercity rail, suburban railway and freight railway will be opened to local governments and social capital.

The government will consider setting up railway development funds, which will be led by central fiscal capital and attract legal social entities to invest. The legal social entities will not directly participate in railway construction but will have reasonable return on investment.