600 billion railway infrastructure funds fell to a certain conclusion

Although the Ministry of Railways financed 310 billion yuan, part of the railway infrastructure projects will resume construction. However, the 600 billion yuan of railway infrastructure investment planned this year will be set to fail.

The Ministry of Railways released the National Railway Major Indicators Completion in November. According to the data, in November, the railway infrastructure investment was 28.9 billion yuan, which was a decrease of nearly 70% from the same period last year, which was 96.3 billion yuan. As of November, this year's railway infrastructure investment totaled 396.3 billion yuan, a decrease of 210.3 billion yuan over the same period of last year, a decrease of 34.7% year-on-year. The railway infrastructure plan confirmed at the beginning of the year was invested 600 billion yuan, still has a shortfall of 203.7 billion yuan, and the time is only one month left. From this, it seems that the planned investment in railway infrastructure planned at the beginning of the year will not be enough for a foregone conclusion.

Recently, the Ministry of Railways has been frequently mentioned with regard to funding shortages, and problems such as the suspension of railway construction and the debt owed by suppliers of materials and equipment have also been exposed from time to time. The financing of the Ministry of Railways in the capital market is also facing changes. Not only is the issuance cost of bonds higher, it has even encountered short-term financing bills.

Against this backdrop, the Ministry of Railways received 250 billion yuan in financing support, plus a total of 60 billion yuan in China’s railway construction bonds issued in November. After the Ministry of Railways obtained financing of 310 billion yuan, the railway construction project began to return to work. Wang Mengshu, an academician of the Chinese Academy of Engineering and deputy chief engineer of China Railway Tunnel, said that the financing obtained by the Ministry of Railways was mainly used to return “old accounts”.

In June this year, Hu Yadong, deputy director of the Ministry of Railways, publicly stated that the construction of the new railway line during the 12th Five-Year Plan period will not slow down, and will build 30,000 kilometers of new lines in five years, with a total investment of 2.8 trillion yuan, an increase of 41.4%. Wang Mengshu predicts that the scale of railway infrastructure will decrease next year compared to this year. However, the construction of railway construction projects for the “Medium- and Long-term Railway Network Plan” and the “Twelfth Five-Year Plan” cannot be stopped. The railways of the next year are basically The scale of construction investment will be 400 billion yuan or 500 billion yuan, and the top priority is to solve the problem of funds.