China encourages financial support for water projects

Updated: 2012-03-01 19:06


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BEIJING - The People's Bank of China (PBOC), China's central bank, announced Thursday it will enhance financial support for the construction of water-related projects in the country.

The central bank said it will encourage banks to innovate with financial products and services that are suitable for water-related facilities and schemes, in line with a government document that aims to boost the construction of such projects for farms and infrastructure building.

The document, jointly issued by the PBOC and other government departments including the National Development and Reform Commission and the Ministry of Finance, said that water-related projects are crucial for China to develop modern agriculture, improve the ecological environment and boost development in rural regions.

The central bank said it encourages local authorities to introduce corporate reforms to their financing vehicles so as to better attract bank loans toward the sector.

It said that the major part of bank credit will incline toward credit-worthy firms. Meanwhile, it will also support the establishment of share-holding water-related companies that can scientifically explore water, land and ecological resources in local regions.