Railway Ministry: High-speed rail construction will not lead to debt crisis

The chief economist of the Ministry of Railways admits that the high price of high-speed rail is due to the high cost of construction and the fact that more than 10 years of ordinary fare has not been transferred to the south. Liu Miao from Beijing yesterday, the railway Ministry's chief economist Yubunli said at the Railway Ministry's Spring Festival Travel news conference that China's large-scale high-speed railway As for whether high-speed rail construction will trigger a debt crisis, Yubunli said the debt crisis is not about the size of debt, but about the quality of investment assets, future earnings forecasts and debt service.　　China's high iron construction will not lead to debt crisis. Yubunli pointed out that China's railway overall debt is safe, reasonable and controllable level, in the coming period, the operating net cash flow can fully cover the demand for debt service; and, the high-speed rail project in the initial financial structure is stable, its capital ratio is not less than 50% of total investment, fully considered the future cash flow balance,　　Ensure the sustainability of the project.　　On the issue of high speed rail fares, Yubunli said the current price is determined by the joint venture company, based on the cost of construction and operation, taking into account the affordability of the market and the price levels of other modes of transport, which are ultimately determined by the market. Yubunli admits that, compared to ordinary railway fares, high speed rail fares are indeed somewhat higher, but there are two main reasons. On the one hand, high speed rail because of safety, comfort and energy-saving emission reduction, saving land to increase investment, construction costs than ordinary railways. On the other hand, the ordinary railway fares currently in place are still 1995 levels and have not been adjusted for more than 10 years.