Sprucing up communities a major focus

State Council meeting also requires upgrading rural power infrastructure

China will step up renovating aging residential communities in cities, complete the upgrading of rural power grids a year ahead of schedule and better ensure access to safe drinking water in rural areas to improve people's livelihoods.

The decisions were made at a State Council executive meeting chaired by Premier Li Keqiang on Wednesday.

"The government must put market players at the center of its services to provide them with an enabling environment. Faced with slower investment growth, we need to get our focus right in order to keep investment expansion steady. The focus should be major projects that meet expectations, spur domestic demand and boost consumption, and also run little risk of repetitive construction," Li said.

"The demand for renovating old residential areas is huge. If work is done well in this field, it could be a significant growth driver," he added.

It was pointed out at the meeting that greater efforts need to be made to set clear standards and targets for this round of renovations. Pilot programs will be rolled out this year to provide more experience for nationwide implementation. Local governments need to fully take up their responsibilities in order to respect the wishes of residents.

Priority will be given to upgrading roads, water, electricity, gas and optical fiber installations. Elevators will be installed and parking lots will be built in communities where conditions warrant.

New mechanisms for financing and investment will be used. Beginning this year, government-subsidized urban housing projects will receive funding support from the central government. Financial institutions will be encouraged to explore sustainable ways to increase support for the renovation of aging residential communities. Private investors will be attracted through market-based approaches to participate in the process.

"We need to carry out pilot programs and draw on best practices at home and abroad. Financial and fiscal support will be provided when necessary," Li said.

It was decided at the meeting that rural power grid upgrading will be completed one year ahead of schedule. This year, relevant investment under the central budget will be used entirely for power grid upgrading in poor areas to ensure that the task is accomplished by the first half of next year.

"China has seen fast progress in power supply development since reform and opening-up. Yet the time required for getting electricity and accessibility still fall short of expectations due to institutional issues and inefficiency in the system. Power supply is critical to industrialization and rural modernization," Li said.

It was also decided at the meeting that issues concerning safe drinking water for about 60 million rural residents will be fully resolved by 2020. Sound mechanisms for water pricing and fee collection will be set up.

"Public infrastructure is a key area in which we must effectively boost investment. In delivering safe drinking water to rural areas, the government must set appropriate standards, work within its capacity and leverage the role of the market," Li said.