CHINA'S State Planning Commission officials expect changes ahead to encourage foreign investors searching for infrastructure deals in China.
Given the enormous capital requirements necessary to finance China's infrastructure, it should be seemingly easy for foreigners with money and experience to find attractive deals.
Many financiers have been left scratching their heads over obtaining a competitive return on risk capital, given questions concerning foreign exchange protection, red tape and legal concerns.
At a conference titled China Infrastructure, in Beijing, one delegate said: 'It's a rather puzzling situation.
'The government repeatedly claims that infrastructure projects are at the top of the agenda, yet policy seems slow to change.' According to estimates made by J P Morgan, China needs more than US$200 billion for railways, highways, power and telecommunications between 1994 and the year 2000.
For such demands, return on investment seems astonishingly low.
Because of the inherent risks of investing in a developing country, rates of return are expected to be much higher than those in developed countries.
