Opinions of the State Council on Reforming Railway Investment and Financing System and Accelerating Railway Construction
No. 33 (2013) by the State Council
 
To: the people’s government of all provinces, autonomous regionsand municipalitiesdirectly under the central government, ministries, commissions and subordinate organizations under the State Council:
Railway is akey infrastructure and the people’s livelihood project of our country. Railway provides a resource-saving and environmental-friendly way of transportation. It has irreplaceable and important effects on acceleratingindustrialization and urbanization to reform railway investment and financing system and accelerate railway construction. In addition, it could promote the development of relevant industries, stimulate the reasonable investment growth, optimize the structure of transportation, lower the cost of social logistics and enablepeople to have a safe and convenient travel as well. In recent years, in spite of the fact that railway development hasgainedgreat achievements in our country, it is still a vulnerable spot on the comprehensive transportation system, and the development of railway is relatively legging behind, compared with the needs of economical and social development, the high level of other countries and other transportation ways. Currently, a major reform is implemented on the railway management and separation of enterprise from administration has been accomplished. Thus it creates good conditions to deepen the reform of railway investment and financing system, to better play the role of government and market, therefore to promote the sustainable development of railway.
Facingthe new situations and new requirements of railwaydevelopment, with the comprehensive consideration of project reserves of railway construction, the preliminary work and the construction power etc, we shall acceleraterailway constructionin the 12^th Five-year Plan period, strive for the over fulfillment of investment plan for the year 2013 and to make good arrangement for the next two years’ construction. We shall give priority to construct the railway and related infrastructure in the poverty-stricken areas as well as the central and western regions. In addition, we shall greatly promote poverty relief program to gear up the coordinate development between different regions and encourage urbanization in a reliable way, thus, comply with the urgent expectation of masses to improve their living condition and increase their income. In order to guarantee well afoot and the on time completion of the projects as well as guarantee the quick implementation of the new projects, thus to achieve the target of the railway development for the 12^th Five-yearPlan period, here we put forward options below:
I. The reform of railway investment and financing system, the improvement of the railway development plan, the wholly opening of the railway construction market and the investment by kinds construction policy shall be promoted in accordance with the principal thoughts of overall planning, multiple Investment, market operation and policy supporting. Open the intercity railway, the railway in the city and urban area, the resource-development railway, and the branch railway to the local government and social capital. The openings are involving the ownership and management rights of the railway to encourage social capital toinvestment in railwayconstruction. Conductresearchesonestablishingthe railway development funds, which is led by the central government’s financial funds and attract social corporate funds.The railway development funds are mainly investedinprojects regulated by the stateandsocial corporatecannot directly participate in the railway constriction and management. However, their stable and reasonable returns are guaranteed. In the last three years ofthe 12^th Five-year Planperiod, bonds which are supported by government will be continually issued and the railway bonds will be issued by new types and ways. (State Development and Reform Committee, the Ministry of Finance, the Ministry of Transport, People's Bank of China, the Banking Regulatory Commission (CBRC),the State Administration for Industry and Commerce and Railway Bureau and the China Railway Corporation are in charge)
II.  The railway pricing mechanism and price relationship in railway shall be given improvement without interruption. Insist on the market orientation in railway pricing reform, when fixing price for goods on state railways, one shall considering the reasonable price rate between highways and railways and rationalize the price level step by step to establish the dynamic adjustment mechanism that the railway prices for goods are verify according to the changes in highway price for goods. In addition, we shall create good conditions to change the freight rate from government pricing to government referential price, thus increase the flexibility of the price. (in charged by State Reform and Development Committee)
III. Establishing the arrangements of railway public welfare system, policy system of transportation subsidies, to create conditions for social capital to enter the railway. As to transport tasks like transporting students, wounded, as well as transporting agricultural supplies and emergency rescue and other public transport tasks, or the operation losses happens Qinghai-Tibet railway line, the South Xinjiang railway line because of the public welfare purpose  a sound accounting system with a reasonable compensation mechanism shall be established. Before straightening out railway freight price, and setting up the public transport accounting system, in order to solve the problem of the China Railway Corporation construction project, such as inadequate capital, heavy interest burden, the central government will implement transitional subsidies to China Railway Corporation in consideration of the public welfare in railway transportation. (In charged by The Ministry of Finance, the Ministry of Railway, China Railway Corporation)
IV.Intensify efforts to revitalize the railway land resources, encourage the comprehensive exploitation and utilization of land. Support the railway station and the comprehensive development along the line. China Railway cooperation, as a state authorized investment institutions, its original railway land which is used for commercial purposes can be transferred and adopt the mode of authorized management the use will be revitalized by China Railway Corporation in accordance with the law. With reference to the guidance about the priority to the development of urban public transportation under the state council "(given by the State Council [2012] no. 64), in accordance with the general land use planning and urban planning overall to arrange the railway station and line peripheral land and moderately increased the strength of development and construction. To make technology innovation of land-saving, and encourage the ground, underground space comprehensive development of the existing railway construction land.  The land which is in accordance with directory allocated policy and have the rights as construction land can be continue to transfer;  if the development and utilization of authorization, need to change the land use or land operation apart from the unit like China railway corporation, the transfer formalities shall be dealt with  in accordance with the law. Local governments should give strong backing to the railway enterprises on station and line land integrated planning and implementation of the comprehensive development in accordance with the principle of market-oriented, intensification, to support the development of the railway with development revenue. (In charged by The Ministry of Land and Resources, Housing and Urban-rural Development, Ministry of Finance)
V.  In order to strengthen the operation and management of the enterprises, make efforts to improve assets income level The China railway head office shall insist on enterprization and market-orientated operation. To promote modern enterprises institutional construction, improve the operation and management, to increase income and cut down expenditures. In addition, we shall rely on good conditions such as the gradual opening of main line railways and the great growth on transport capacity to try our best to expand market share, to provide value-added service like logistics depending on our main transportation business. Thus achieve the goal that the passenger transport rate shall increase by more than 10% and the stable growth of freight transportation shall be achieved.  The perfect cost-accounting system and the performance appraisal system shall be established to give the effective control of the construction cost and the operation cost thus to increase the operation benefit. The overall assets evaluation process shall be started on the foundation of timely assets liquidation. Thus the value of total assets could be counted and the idle assets could be tapped, and the increment could be optimized, so the self-develop ability of the enterprises could be improved. We shall achieve the operation of the constructed projects and doing well in the supporting between station facilities and operation equipment to make full development of the overall benefits of the railway networks, to improve the revenue of incremental assets (in charged by China Railway head office, the ministry of finance and the Railway Bureau )
VI.The preliminary work of the project shall be accelerated to form the joined force of railway construction. As the owners of the project, China Railway Cooperation and the local government shall strengthen the organizational leadership and to achieve close cooperation. In addition, the work efforts shall be scale up, and the preliminary work like to make a good construction proposal in a practical way and to collect enough funds and to analyze risks to make sure social stability shall be done . Supported by related departments, China Railway cooperation shall strengthen construction monitoring and operation management to guarantee the quality of the project and the safety running of the railways. The coordination work shall be strengthened among the Development and Reform Committee, the Ministry of Land and Resources and the environmental protection departments and the cooperation mechanism shall be established, thus to accelerate the evaluation of the projects and accelerate the railway construction in the central and western areas and poverty-stricken regions and guarantee the key railway projects regulated by the 12th five-year plan can start on time and constructed in reasonable date. The financial agencies like banks shall give continual support to the construction of key projects with the consideration of their bearing capacity. China Railway Cooperation will continually enjoy the tax preferential policies which belong to Ministry of Railways originally. The original preferential policies given by state council and its relevant departments and the local governments to the railways will be implemented continually (in charged by China Railway Corporation, National Development and Reform Commission, Ministry of Finance, the Ministry of Land and Resources, Environmental Protection Ministry, ministry of Transport, China Banking Regulatory Commission, People's Bank of China, General Administration of Taxation and China Banking Regulatory Commission)
 
State Council
August 9 2013
 
(for public release)