On Thursday, the National Development and Reform Commission (NDRC) announced that it has approved a fund of 45.57 billion yuan for three new urban railway projects in the southwestern portion of Chongqing city.
In the statement, Chongqing will be financing 40% of the investment using fiscal funds as the government cannot take on more debt to support the project. The rest of the funds will come from bank loans.
The Chongqing projects is the latest in China's efforts to streamline all its infrastructure projects and help boost the slowing economy. Currently, the economy expanded at its weakest rate since the financial crisis last quarter and it is expected to cool down further before the new construction projects would be felt.
However, the new project is presenting new worries for the public, especially in terms of the local government's finances. But, Beijing said that it will crack down on debt risks and help if necessary.
