(ECNS) -- China may lower its threshold for cities to build metro systems from a population of at least 3 million in an urban area to 1.5 million, a move that could drive infrastructure investment, Economic Information Daily reported.
The newspaper, citing authoritative sources, said China's new stage of economic growth, expanding scope of cities, and increasing traffic demand all mean population is no longer a key element in approving the construction of metro lines.
In some western countries, a population base of just 1 million is required, much lower than China's current requirements, which also set a city's GDP at 100 billion yuan ($15 billion) and financial revenue at 10 billion yuan.
Ning Jizhe, a deputy head of National Development and Reform Commission, China's economic planner, and also head of the National Bureau of Statistics, said investment in infrastructure will continue to play a key role in helping realize economic growth and social development targets.
China will invest around 4.7 trillion yuan in transport infrastructure projects over the next three years. Funds will be provided for about 303 projects ranging from waterways, roads, railways, and metro systems to airports.
Such funds will give priority to promoting the preparation needed to build metro lines in 103 cities, with an expected length of 2,000 kilometers and a total investment of 1.6 trillion yuan.
Liu Yuanchun, president of the National Academy of Development and Strategy at Renmin University of China, said road construction has become saturated in first and second-tier cities but that there still is huge investment space for metro systems.
Sources from Industrial Securities said regional governments are interested in building metro system because it involves a massive production chain, can fuel economic growth and enhance public image.
The relaxed policy may result in an additional investment of one trillion yuan as more cities plan to building metro lines, said Li Xun, vice president of China Academy of Urban Planning and Design.
It's also expected that private investment would be supported by favorable governmental policies regarding metro line projects.
