CASH-STRAPPED Huhhot will build and upgrade its roads from the sale of land use rights along them to resolve funding shortage.
Huhhot's party secretary for construction Wang Zhisui said the lack of cash had prompted the government to turn to property buyers for funds.
'People give us money to build roads and we build property along the roads for them, and furnish it with water, gas, electricity and sewage facilities,' he said.
It means the government will not be spending a single penny from its coffers for the expansion of roads.
The buyers of the properties along both sides of the roads have the rights to sell and transfer the property under terms agreed with the government.
Already, 12 roads within the inner ring road designed for upgrading have been contracted out, involving an investment of 1.27 billion yuan (HK$1.16 billion). The inner ring road covers an area of 60 square kilometres.