The State Planning Committee in China has lifted the embargo on construction of new metros which was imposed in 1995 in an attempt to limit demands for foreign exchange.
The vice-minister of construction, Zhao Baojiang, announced in August this year that urban rail expansion was to be encouraged as a means of stimulating the national economy.
However, the government has stipulated that most contracts should be awarded to domestic firms, with foreign contribution being limited to 30%.
Following the start of work on Nanjing Line 1, construction of the Shenzhen light metro is expected to get under way in the next few months. Further projects envisaged include 430km of metros in 15 cities iwith a projected total cost of $17bn.
