Guangzhou to Spend 189 Bln Yuan on Transportation Expansion

Southern China's Guangzhou city expects to invest 189 billion yuan,or 28 billion US dollars, over the next five years to upgrade public transportation and build 248 kilometers of new subways, according to a report on the website Sina.com.cn.

Pan Jianguo, an official from the Guangzhou Municipal Development and Reform Commission, said the construction of the new subways will require 150 billion yuan by 2015.

Half of the cost will be covered by funds raised through loans and bonds, while the government will invest 60 billion yuan during the five-year period. Revenue from subway development will be use to finance further construction.

Besides the construction costs, the planned investment also includes research expenses for roads and subways to be built from 2016 to 2020.