CHINA: THE BOOM GOES ON

The initial results from a study on infrastructure investment in Asia are discussed with specific reference to the road sector in China. Of the Asian countries included in the study, China has been the most heavily involved in building new infrastructure. About $27 billion was allocated for road construction from January to July 2004. By 2010, the length of the entire Chinese road network should exceed 2.1 million km, including a new 35,000 km expressway that will connect China's 100 major cities. The bulk of the financing for these projects is expected to come from public funds. However, economic growth and growing modal share of road transportation is expected to continue to increase demand for highway networks. Because the current funding sources are not sufficient to meet demand, the government will need to develop new sources for the future. The government's role in providing highway sector infrastructure and transportation services also is shifting gradually from that of owner, investor and manager to that of policymaker and regulator.