The Sichuan provincial government has invited tenders for 2,242 projects that are expected to draw a total of ¥3.67 trillion in investments in a move to stabilize economic growth.
The projects welcome capital from the private sector and the provincial and local governments will offer support to private capital, said Tang Limin, director of the Sichuan Development and Reform Commission, the province's top economic planner.
The plans for the province include 639 infrastructure projects involving urban facilities and infrastructure in the hydropower, agriculture and transport industries worth a combined ¥1.49 trillion; 1,253 industry projects involving the energy and service sectors worth a combined ¥1.8 trillion; 317 public service projects worth a combined ¥368.3 billion; and 33 environmental protection projects worth a combined ¥11 billion.
Sichuan's investment announcement came after 13 provincial and city governments unveiled stimulus plans worth a combined ¥10 trillion since July. The National Development and Reform Commission has reportedly approved upwards of ¥7 trillion worth of public works projects since May.
However, the creditability of the plans is being questioned as the ¥4 trillion investment package introduced by the central government in late 2008 has already heavily indebted many local governments. Wei Jie, a professor with Tsinghua University, warned that if the funding of the latest announced projects is not dealt with properly, the same kind of rampant overcapacity and inflation seen in 2009 and 2010 would reemerge.
$1 = ¥6.31