Infrastructural Building

Since 1998, the fixed capital investment of the Municipality has been steadily increasing at an average annual growth rate of 8.8%, the cumulative total being 41.8 billion Yuan. This has contributed importantly to the sustained economic growth of the Municipality as well as to its economic structuring. Each year, new capital projects are added and initiated. The following table illustrates the rate of development.

Table: Fixed Capital Investment from 1998-2002

Unit : billion Yuan

Capital projects completed in the above period are abound. Major industrial projects include the following: Fenghua Electronic Components and Parts Project, Fenghua Magnetic Materials Project, Fenghua Precious Metal Powder Project, Star Lake Microbiology Project, Gaoyao Hetai Gold Mine, Dinghu Yongsheng Textiles City, Gaoyao Hongtu Casting Manufacturing. Major transportation projects include Guangzhou to Zhaoqing Highway, Zhaoqing Bridge, extension of the Trans-Municipality Road, Mafang Bridge Extension, National Route 324, Renovation of National Route 321, and renovation of Provincial highways. Major energy projects include both the urban and rural electricity supply systems, Gaoyao Baitu Electricity Transmission and Transformer Station. Water and hydroelectric power projects include Fengkai Jiangkou Hydro electric power Station, the first and second phase engineering projects of Jingfeng Luanwei, and Gaoyao Flood Prevention Embankment Project. Other projects related to urban construction include sewage treatment plant, road system and Star Lake Environment Upgrading Program.

In the building of these fixed capital investment projects, we actively solicit the participation of national bonds: Since 1998, 27 projects with a total investment value of 3.07 billion, have received funding from national bonds totaling 599 million Yuan, of which central national bonds account for 24% and local bonds 76%. These national bonds are invested in a wide array of projects including city administration, environmental protection, forest protection, the rural electricity supply system, hi-tech, education and tourism. Of these, there are 13 water and hydroelectric power projects, which altogether receive national bond investment at the value of 140 million Yuan, accounting for 24% of the city total. Two city administration projects receive bond investment valued at 230 million Yuan, accounting for 38% of the city total, of which the city's road system and Zhaoqing Bridge receive 150 million Yuan and 58 million Yuan respectively. Two environmental protection projects receive bond investment at the value of 58 million Yuan, accounting for 9.7% of city total, of which the city's sewage treatment plant takes 48 million Yuan while the Star Lake Environment Upgrading Program takes 10 million. One hi-tech project, namely Fenghua Electronic Component Company, receives a bond investment valued at 30 million Yuan, accounting for 5% city total. Two rural electricity supply systems receive 120 million Yuan accounting for 20% of city total. There are 5 forestry engineering projects which altogether receive a bond investment value of 57 million Yuan, accounting for 1% of city total. Other projects include education which gets 20 million Yuan and tourism which gets 12 million Yuan.

Up to the end of June 2002, the actual investment made in the above 27 projects amounted to 2.57 billion Yuan, among which national bond accounts for 512 million. Projects completed include: the first phase of the rural electricity supply system, the second phase of Jingfeng Lian Wei Project, Teqing County Sangdong and Shanzhou Lian Wei Project, Teqing Xijiang Dam Project, Fengkai County Flood Prevention Embankment Project, Sihui County Water and Soil Conservation Project, Huaiji County Water and Soil Conservation Project, Guangning County Water and Soil Conservation Project, Zhaoqing Sewage Treatment Plant, Zhaoqing Bridge, Star Lake Environment Upgrading Program.

Presently, 14 projects are under way with a total investment value of 843 million Yuan (national bond participation valued at 238 million). As at the end of June 2000, actual cumulative investment stands at 614 million Yuan, with national bond valued at 188 million.

During the same period, foreign and private investments have been growing at an average annual growth rate of 8%. Actual cumulative value stands at 2.25 billion US dollars, from the base value of 401 million US dollars in 1998 to 545 million US dollars in 2002. Major projects include projects of Yuezhao Road Co., Ltd. (265 million US dollars), Guangdong Dingfeng Paper-making Co., Ltd. ( 43.5 million US dollars), Zhaoqing Huanan Metallic-Plastic Tubes Co., Ltd. (29.9 million US dollars), Zhaoqing Dawang Dongjian Pharmaceutical Co., Ltd. (29 million US dollars), Sihui Shifa Aluminum-Magnesium Alloy Co., Ltd. (28 million US dollars), Huaiji Xinlian Hydroelectric Power Installation Project Co., Ltd. (25.6 million US dollars), Donghuan Real Estates Limited (20.1 million US dollars), Adomax Electronic Enterprise Co., Ltd. (20 million US dollars).