The local authority of Shenyang, capital of Liaoning Province announced yesterday that it had received approval from the central government to build a metro system.
The long-awaited Shenyang subway lines will stretch a total of 182.5 kilometers. The local government will carry out the first stage of the project from 2005 to 2012. Construction of the two underground lines, Line 1 and Line 2, with an estimated length of 40.85 kilometers will need an investment of 17.18 billion yuan (US$ 2.11 billion).
Construction of Line 1 will begin in November, and construction of Line 2 is set for October 2006, according to Zhao Changyi, vice-mayor of Shenyang.
"The project will not only ease urban transport congestions but also play a positive role in renovating the old industrial base," said the vice-mayor.
As one of the key cities in northeast China, Shenyang had a population of 7.2 million at the end of last year, statistics from the Shenyang Statistics Bureau show. Buses constitute the backbone of the city's public transport system, 5,000 in all.
"The tube system will greatly ease traffic congestion and improve the environment," said Tong Jingshi, director of the Shenyang Subway Construction Office.
Besides the obvious benefits for reducing traffic jam, this metro project will also bring opportunities for local manufacturing companies in Shenyang, one of the country's heavy industry bases. The local government said it would shoulder a significant portion of the construction cost. An official from the Shenyang Municipal Planning Commission said the municipal government will provide 8.59 billion yuan (US$1.05 billion), half the cost for the initial construction of the first two lines. The rest will come mainly from the China Development Bank (CDB).
Zhao confirmed that CDB has agreed to provide the loan.
Statistics from the Shenyang Statistics Bureau show that the city's GDP stood at 190 billion yuan (US$23.42 billion) in 2004 and its fiscal revenue was 13.8 billion yuan (US$1.70 billion).
"It is impossible for the central government to approve our project if we failed the qualifications," said Zhao.
(China Daily August 23, 2005)
