The five major financing channels, the Railway Group strives to achieve the goal of total investment of 300 billion yuan

On June 26,  the interview group themed with "Shinein the new era, Navigate in the new Silk Road –Voice of Shaanxi ,Via Which We Communicate With The World" and “Take the state-owned enterprise responsibility and forge ahead” enters Shaanxi Province Railway Group Co., Ltd.

The company wasestablished on October 17, 2016, mainly responsible for the planning of railwaynetwork in Shaanxi Province, promoting the construction of high-speed railway,inter-city railway and common speed railway, the operation and management oflocal railway, the development and utilization of resources along the railwayline, railway construction financing and fund management, as well as theoperation of railway related assets. Thereby accelerating the construction ofan integrated transportation system in Shaanxi Province, and finally achievingthe goal of “buidling  high-speed railwayin all cities, opening inter-city railway in Guanzhong area,realizing fast-passnationwide connection”.

Accordingly, during the“Thirteenth Five-Year Plan” period, the scale of the railway project planned tobe invested by Shaanxi Province is 1,841 kilometers, with a total investment ofabout 300 billion yuan. As a financing platform for railway construction inShaanxi Province and a representative of the provincial government funder, thegroup needs to raise funds about 200 billion yuan, of which capital financingis 115 billion yuan and project loan financing is 85 billion yuan.

Yang Xuan, chiefaccountant of the Railway Group, was introducing the innovative measures  to solve financial difficulties. (Photographyby An Xin)

Inter-city railway is aquasi-public welfare project. In addition, it's characterized by largeinvestment, long construction period, and lag in revenue. Therefore,theinvestment enthusiasm of all institutions is not high, and financing isdifficult. In the face of challenges, the Railway Group has taken fivefinancing channels, including its own funds, issuing railway constructionfunds, government revenue and financing self-balancing special bonds,increasing the comprehensive development of land along the railway, andplanning to issue corporate bonds. It works in an effort to realize thefunction of "financing railway construction funds, operatingrailway-related assets"given by the Shaanxi Provincial Government. Capitalrequirements for railway project construction have been effectively guaranteed.