China allocates funds for rail projects

6 November 2011 (Last Updated November 6th, 2011 18:30)

China has unveiled a plan to invest 200bn yuan ($31.5bn) in capital to support railway construction projects throughout the country, according to Xinhua.

China has unveiled a plan to invest 200bn yuan ($31.5bn) in capital to support railway construction projects throughout the country, according to Xinhua.

According to reports, over 80% of China's current projects are facing construction delays, some of over a year, as the Chinese Ministry of Railways was burdened by debts of 2.1tn yuan ($330.3bn) at the end of June 2011, bringing its debt-to-assets ratio to nearly 59%.

The ministry suspended construction of more than 10,000km of rail projects following a high-speed train accident on 23 July that killed 40 people.