Ministry secures funds to revive railway projects
Updated: 2011-11-03 22:58
BEIJING - China's Ministry of Railways (MOR) said on Thursday that it will pay off some of its creditors before November 20 to ensure funding for railway projects that are currently under construction.
"With the support of relevant departments, the MOR has enhanced its fundraising efforts and will soon channel the funds to project contractors," the ministry said in a brief statement.
However, the ministry did not provide further details.
The statement came after media reports claimed the ministry has secured more than 200 billion yuan ($31.65 billion) in financial support to boost investor confidence.
Construction on more than 10,000 km of railways was halted in recent months due to a lack of funds, leaving workers without pay, according to media reports.
The massive construction halt arrived on the heels of China's tight liquidity conditions and a deadly train crash in July in Zhejiang province, which eroded investor confidence and limited the ministry's ability to borrow money or sell bonds.
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