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August 12, 2013

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White elephant copycat warship a waste of funds

A CEMENT-structure copycat aircraft carrier built in the city of Binzhou in east China’s Shandong Province a decade ago was supposed to be the city’s “calling card,” though it is unable to move.

There was brief enthusiasm after the copycat was completed in 2005.

However, concerns have been raised about the funds already spent on the immobile warship, as well as plans for a related theme park.

“The aircraft carrier copycat used to be an attraction for locals and people in nearby cities,” said Binzhou vendor Wang Guodong.

Cultural events and performances were staged on the “carrier” to entertain visitors who could also shop at the business outlets in the big concrete boat, similar in shape to the USS Nimitz-class carrier.

“On summer weekends, the nightlife on the aircraft carrier used to be sizzling,” he said. 

But with few visitors these days, shops have closed and many vendors have simply packed up and left.

Wang Zhongmin, a local political advise, publicly questioned the wisdom of the city’s investment earlier this year. He blamed bad investment for the suspension of government support and lack of interest by citizenry.

The biggest concern involves the unbudgeted investment of 90 million yuan (US$14.6 million), bringing total investment in the carrier and its tourism park to 120 million yuan.

Zhang Chuanli, deputy director of the city’s tourism bureau, said the large gap between the budget and the actual cost was caused by incorrect estimates and lack of construction experience.

The rising cost of building materials was another reason for the “staggering overspending,” Zhang added.

Official explanations have failed to quell public concerns, as many people have questioned how the project passed its preliminary feasibility assessment.

Li Xiaohua, an associate research fellow with the Institute of Industrial Economics under the Chinese Academy of Social Sciences, said existing constraints on local government budgets are too lax and need to be tightened.

“A rapidly developed service industry is one of the goals of China’s ongoing economic rebalancing and industrial upgrading. As the economy has slowed down, we should be wary of local governments trying to launch similar projects simply out of wishful thinking,” Li said.

A sharp contrast to Binzhou’s flop is the booming aircraft carrier park built in Tianjin, a municipality around 200 kilometers away.

At the Tianjin Binhai Aircraft Carrier Park, which generated more than 100 million yuan in revenue in 2011, visitors can board the retired Russian aircraft carrier Kiev, tour national defense exhibitions and take a helicopter flight.

By contrast, Binzhou’s copycat carrier merely resembles the USS Nimitz-class in shape, without the internal structures and workings. It lacks Tianjin’s geographical advantages, and as a result, it also lacks visitors.

“A fake aircraft carrier in a small city is destined to have a limited influence among tourists,” said Ding Zaixian, vice president of the Shandong Tourism Trade Association.

The landmark’s flop comes amid increasing calls to limit government power in boosting tourism and other service sectors, especially with lavish projects.

Wang Zhongwu, a sociology professor at Shandong University, said local governments’ desire to boost economic development played a key role in China’s economic reform and opening-up in past decades.

“Putting government in a dominant position can pool resources and do big things. But the risks are local governments’ unchecked investment impulses and blind decision-making,” Wang said.

Local government investment and spending is now under scrutiny by the public as the economy slows.

Ding said that without careful and professional preliminary research, government investment will waste taxpayer money and create burdens for local finance.

To avoid these big and bad investments, Wang suggested the central government clearly define the boundaries between government and the market and restrict the role of governments to providing public security, social security and basic public services.

The author is a Xinhua writer.

 




 

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