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The Chinese government plans to keep borrowing US$1 billion to US$1.5 billion from the World Bank each year from 2007 to 2009, although the term of the loans is to be shortened.

 

Seventy percent of the funds will be used to finance projects related to transportation, urban construction and environmental protection.

 

The remaining 30 percent would fund agriculture and energy conservation training, said a report released by the National Development and Reform Commission on Thursday.

 

About 80 percent of the loan will be channeled to central, western and northeast areas where economy is less developed than the eastern coast.

 

The World Bank will cut loan terms next year from 20 to 17 years to take account of the growth in China's per capita gross domestic product, which rose from US$426 in 1980 to 1,700 last year.

 

The World Bank started offering China low-interest loans in 1980 when China assumed its seat in the organization.

 

(Xinhua News Agency August 18, 2006)