Railroad investment

China invested 72.5 billion yuan (US$9.1 billion) in railway construction from January to July, up 1.8 times from the same period last year, a Ministry of Railway spokesman says.

Of the total, 53.4 billion yuan (US$6.7 billion) came from the ministry, up 1.3 times from  the same period last year, says spokesman Wang Yongping.

Meanwhile, outlays by local governments and companies surged to 18.588 billion yuan (US$2.326 billion), up 5.5 times year-on-year.

The money will be invested in both State-run and joint-venture railways.

Investment in local railway construction reached 545 million yuan (US$68.1 million), all bankrolled by local governments, Wang says.

Government reprimand

China's cabinet, in an unusually tough message, has warned regional officials that any attempt to dilute the effects of macro-economic policies would not be tolerated.

At an executive meeting chaired by Premier Wen Jiabao last Wednesday, the State Council sternly reprimanded top officials in the Inner Mongolia Autonomous Region for their role in an unauthorized project which caused fatal accidents.

The region's chairman, Yang Jing, and vice-chairmen Yue Fuhong and Zhao Shuanglian, were ordered to write self-criticisms to the State Council.

The illegal project was Xinfeng Power Plant's investment of 2.88 billion yuan (US$350 million) for two coal-burning generators with a capacity of 300,000 kilowatts each. Construction started in April 2004 without requisite approvals.

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