Baotou allocates specific fund to promote 'Ten Full Coverage' project

(chinadaily.com.cn)

Updated: 2015-09-24

The city of Baotou in North China’s Inner Mongolia autonomous region has set aside a special industrial fund aimed at promoting its “Ten Full Coverage” project.

The fund, which has been dubbed “beautiful villages”, is sponsored and operated by the Baotou municipal government and private enterprises. Both sides aim to raise a capital of 4 billion yuan ($627.6 million), 2 billion yuan of which will come from government coffers and the other 2 billion from social financing.

By Sept 15, a total of 560 million yuan had been raised, with both sides investing 280 million yuan.

Capital allocated to the “Ten Full Coverage" project will be operated through a custodian bank and managed by a company authorized by the government. The company will be responsible for the implementation of the fund and cooperation with districts, counties and banners in Baotou.

The districts, counties and banners involved with the project are required to sign an agreement with the Baotou bureau of finance, and department of agriculture and industry, to enforce the contractual obligation of repayment rules.

A series of guidelines have been drafted to clarify the rights and obligations of the government and enterprises. These range from management rules and capital borrowing agreements, to regulation on the utilization of Baotou’s “beautiful villages” industrial fund.

The “Ten Full Coverage” project aims to improve public services and infrastructure in Inner Mongolia in ten aspects, from drinking water sources to roads, broadcasting services and social security.

The project is expected to be a driving force for investment and consumption in the region, as well to promote the balanced economic development in rural and urban areas and to improve the income of farmers.