People’s Daily recently republished an article on the latest development in the collapse of the Ministry of Railway’s problematic construction plans. The report stated that over 10,000 kilometers of construction work had to be suspended nationwide. Together with the 13,000 kilometers currently under construction, the gap in funding is around RMB 1 trillion. For the time being the Ministry of Railways has collected RMB 200 billion to fill the gap. The State Council is coordinating a “blood transfusion” campaign to save the troubled Ministry of Railways. Tax adjustments and government bonds are also being considered.
Source: People’s Daily, November 6, 2011