Local planners at the ongoing congress session asked the city to hold fast the country's policy of having the government shoulder the investment burden while the market carries out specific actions.

"We're looking at a massive cash outlay as the city tries to improve the public transport system with a combination of rail and buses," Zhang Huimin, director of the Municipal Construction Committee, said.

By 2005, the city will have built 148 additional kilometers of rail and will have begun to pave another 70 kilometers, increasing the percentage of passengers carried by public transportation from 3 percent currently to 20 percent.

Zhang said each kilometer of subway will likely cost the city roughly 600 million yuan (US$72.29 million) and each of the 500 kilometers of highway the city plans to build will come in at around 80 million yuan (US$9.64 million).

In the end, construction of the subways and highways will require 170 billion yuan (US$20.48 billion), taking up a considerable chunk of Shanghai's 1,000 billion yuan (US$120.48 billion) budget for the five-year period.

In order to offset the expense of transportation projects, the government has been striving to convince non-governmental investment entities to participate by offering preferential policies, enhancing support from financial and insurance industries and promising to revitalize stagnant infrastructure.

In the meantime, according to Zhang, the city will continue with construction by taking out loans and strengthening management over contracted investment.

Over the past five years, Shanghai has invested a total of 110 billion yuan (US$13.25 billion) in transportation construction, funding 36 key projects designed to stimulate development throughout the city.

Rail has been stressed as the best solution to local traffic and the option most worthy of serious investment. The city currently has 65 kilometers of rail in operation.

Over the next five years, the city plans to complete the Pearl Line second phase-a 22-kilometre elevated railway located on the city's east side that will connect with the already-built 25-kilometre first phase on the west to form a loop.

Shanghai's main subway route, Metro Line I, will be extended 12.5 kilometers north to Taihe Lu. Metro Line II will be west 11 kilometers, from Zhongshan Park to the Hongqiao International Airport.

Construction will start in the Pudong New Area on a 35-kilometer magnetic elevated rail line that will connect Metro Line II to the Pudong International Airport.

In order to crack the river-crossing nut, the city plans to build three more tunnels and one more bridge over the next five years.

(China Daily 02/09/2001)