Experts called for broader participation of US private investment in the infrastructure sector in China, especially in the relatively backward western regions.
Zhao Xiaoyu, the People's Republic of China (PRC) executive director of ADB, said: "There are bright business prospects for private investment in China's infrastructure sector and it is estimated that the total investment demand will reach US$750 billion in the next 10 years."
He was speaking at the opening seminar of the US-China Infrastructure Development Meetings hosted by the firm Shearman & Sterling.
Infrastructure has become a bottleneck for China's further development, Zhao said.
Bruce Murray -- PRC country director of the bank -- said his bank's surveys showed foreign investors' great concern at the infrastructure constraints. He added that, in the past few years, about 70 percent of the bank's loans to China -- totalling US$11 billion spread over 88 projects -- went to the infrastructure sector.
The speakers at the seminar also gave suggestions to US private investors.
Zhao Xiaoyu said: "A formula for successful investment projects in China's western regions should combine three elements: domestic and foreign capital, experience from investment in eastern coastal areas, and local human resources."
To ensure that the interests of the Chinese recipients of foreign investment are protected, Zhao urged the Chinese side to seek legal consultations from established international law firms.
Luo Yunyi -- deputy director-general of the Investment Research Institute under the State Development Planning Commission -- suggested that private investors participate through acquisitions of ownership or the right to operate existing public infrastructure projects.
(China Daily May 09, 2002)
