October 18, 2011 at 12:31am
China road construction faces capital shortages -paper
The central audit office estimates the total local debt to
be at 10.7 trillion yuan as of the end of last year, which
analysts say a significant portion of it could turn sour.Investment in road construction is expected to fall 20
percent this year compared with last year, while the amount of
engineering work is expected to be 20 percent lower than
planned, the newspaper said, citing the Ministry of Transport.As the capital shortages are likely to get more severe
during the fourth quarter, the ministry will control the pace
and size of road construction to ensure stability, the paper
said.
