In the first quarter, the infrastructure investment made all-out efforts to sprint key projects, and accelerated the construction of pipeline network transformation.
In the first quarter, infrastructure investment made all-out efforts to sprint key projects and stepped up construction
Multi-agency forecasts are expected to increase by 10%, pipeline network transformation and other new highlights
The first quarter is coming to an end, and the central and local governments are accelerating the progress. A number of projects in key areas such as energy, transportation, and water conservancy have been started intensively, and the renovation of urban aging gas pipeline networks has also stepped up implementation. At the same time, the funds for project construction have been accelerated, and the pre-approved quota of 1.46 trillion yuan for special bonds is expected to be basically issued in the first quarter. The analysis pointed out that the growth rate of infrastructure investment in March will remain at a high level, and it is expected that the growth rate in the first quarter is expected to reach about 10%.
On March 17, the Zhejiang Taishun and Jiangxi Fengxin pumped-storage power station projects with a total investment of 14.773 billion yuan started construction.
The relevant person in charge of the State Grid told the “Economic Information Daily” reporter that according to investment estimates, the construction of Zhejiang Taishun and Jiangxi Fengxin pumped storage power stations can improve local transportation and living infrastructure, drive investment and the development of related industries, and drive local GDP to exceed 20 percent. 30 billion yuan, the average annual increase of local fiscal revenue is about 120 million yuan, and more than 8,000 jobs of various types are provided; during the operation period, the local fiscal revenue can be steadily increased by about 220 million yuan per year, and the economic and social benefits are very significant.
This is not an exception. Recently, with major projects as the starting point, infrastructure investment in many places across the country has been at full speed, and the economy has made a good start in the first quarter.
On March 15, the first batch of major infrastructure and traffic congestion relief projects in Yinchuan, Ningxia, started in 2022, with a total of 98 projects with a total investment of 12.1 billion yuan. The city plans to implement 157 infrastructure projects within the year with a total investment of 21 billion yuan. On the same day, the key projects of the new and old kinetic energy conversion starting area in Jinan, Shandong also started in the spring of 2022. The total investment of 20 key projects is about 45.5 billion yuan, and the annual investment is about 15.5 billion yuan.
“Currently, my country’s economic development is facing triple pressures of shrinking demand, supply shocks, and weakening expectations, and the necessity of infrastructure development to stabilize growth is increasing.” Luo Zhiheng, chief economist of Yuekai Securities, told the “Economic Information Daily” reporter.
In fact, since the beginning of this year, my country’s infrastructure investment has accelerated to pick up, and the effect of stabilizing growth has already appeared. According to data released by the National Bureau of Statistics recently, from January to February, infrastructure investment increased by 8.1%, an acceleration of 7.7 percentage points. Among them, the investment in the water conservancy management industry increased by 22.5%, and the investment in the road transportation industry increased by 8.2%.
The high investment in infrastructure is inseparable from a series of policies to stabilize growth. According to Fu Linghui, director of the General Department of the National Bureau of Statistics, the rapid increase in investment projects strongly supports investment growth. From January to February, the number of newly started projects increased by 1.1 times year-on-year, and the total planned investment in newly started projects increased by 62.8%.
At the same time, the issuance of local government special bonds has been significantly accelerated, and the guarantee of investment elements has been strengthened. “The pre-approved quota of special bonds of 1.46 trillion yuan is expected to be basically issued in the first quarter, and the funds will be available to promote the implementation of reserve projects as soon as possible. From January to February, a total of 875.5 billion yuan of new special bonds were issued, and the issuance in March is expected to be 600 billion yuan. In addition, the funds for special bonds issued and unused last year were carried forward, and the funds in the first quarter were relatively abundant.” Luo Zhiheng said.
The industry pointed out that in the next step, with the continued implementation of relevant policies, infrastructure investment is expected to accelerate faster than expected, opening up more investment space. Judging from this year’s “Government Work Report”, water conservancy, transportation, and energy still play a major role, mainly in key water conservancy projects, comprehensive three-dimensional transportation networks, and important energy bases and facilities.
The Ministry of Transport proposed to focus on expanding effective investment in transportation, focusing on the construction of comprehensive three-dimensional transportation networks in many places. For example, the recently released “Jiangsu Province Comprehensive Three-dimensional Transportation Network Planning Outline” proposed that by 2035, a modern and high-quality comprehensive three-dimensional transportation network that is convenient, smooth, cost-effective, low-carbon intensive, intelligent, advanced, safe and reliable will be basically built. The Jiangsu Provincial Department of Transportation has designated this year as the “year of tackling major projects” in the province’s transportation sector, ensuring the completion of an investment of 180.9 billion yuan.
In the context of ensuring supply and stable prices, the construction of important energy bases and facilities is crucial. This year, we will accelerate the construction of government dispatchable coal reserve capacity of more than 200 million tons, add more than 5 billion cubic meters of gas storage facilities, and promote the national emergency backup and peak-shaving power supply to reach more than 300 million kilowatts.
Accelerating the renovation of urban gas pipelines, water supply and drainage pipelines and other pipeline networks, improving flood control and drainage facilities, and continuing to promote the construction of underground comprehensive pipeline corridors will also be the focus of stable investment this year.
According to the news from the National Development and Reform Commission on March 17, the newly issued “Key Tasks for New Urbanization and Urban-Rural Integration Development in 2022” proposed that the renovation of urban aging gas pipelines and other pipelines will be launched, and the flood control and drainage facilities will be improved. Speed up the transformation of old urban communities, and strive to improve the basic living conditions of 8.4 million households. More market-oriented methods will be used to promote the transformation of old factories in big cities, and a number of large old blocks and urban villages will be transformed according to local conditions.
A number of institutions predict that under the influence of various favorable factors, infrastructure investment in 2022 is expected to form a strong support for the economy in the first quarter and even the whole year. The growth rate of infrastructure investment in the first quarter is expected to reach about 10%.
“Judging from some of the high-frequency data we have observed in infrastructure construction, the growth rate of infrastructure investment in the next stage will still be at a high level,” said Liang Zhonghua, a macro analyst at Haitong Securities. On the other hand, the orders and expected indicators of infrastructure-related industries are at a high level, indicating that companies are still optimistic about the next stage.
“Since the beginning of this year, key projects in various regions have been accelerating their progress, and some people have spent the New Year on the spot, and the start-up process has been further accelerated.” Luo Zhiheng said that it is expected that the growth rate of infrastructure investment in the first quarter of 2022 is expected to reach about 10%, and from the perspective of the whole year, infrastructure construction The growth rate of investment will show a trend of high before and then low.
“Accelerating infrastructure investment is an important measure for counter-cyclical and cross-cyclical adjustment based on the current situation.” Luo Zhiheng said that infrastructure investment, as an important force for stabilizing growth, can not only achieve rapid results and stabilize total demand, but also optimize the supply structure. Improve the efficiency of economic operation and save more stamina for the economy to achieve stability and progress. (Reporter Wang Zixu and Wang Lu)