The Shanghai municipal government has revealed how money obtained from license-plate bidding in 2011 and 2012 has been used, Shanghai Television Station reported on Tuesday.

Nearly 10.8 billion yuan ($1.78 billion) of the more than 11.8 billion yuan obtained from the auctions of private-car registrations was spent on the construction of metro rail facilities and for incentives to encourage the public to use mass transit.

Of the total, around 30 percent went to rail-related construction. Another 30 percent was used for subsidies designed to keep ticket prices low so as to encourage more people to ride.

Around 10 percent went to subsidize free rides on buses and subways for residents older than 70, and the rest was used for other construction and maintenance of infrastructure.

Shanghai, since 1994, has used a monthly bidding system for issuing license plates to limit the number of vehicles.