70b yuan fund established for reconstruction of Sichuan

By Lydia Chen  |   2008-6-24  |     ONLINE EDITION

THE central government will transfer a total of 70 billion yuan (US$10.18 billion) from four sources to fund reconstruction work in earthquake-ravaged Sichuan Province, a vice premier told congress today.

Sixty billion yuan will be allocated from the central government's "budget stabilization fund" while 5 billion yuan will be allocated from tax collected from vehicle purchases, Hui Liangyu, vice premier and deputy commander in chief of the Earthquake Rescue & Relief Headquarters, said in a report to the Standing Committee of the People's Congress this morning in Beijing.

The budget stabilization fund is used to offset the central government's budget deficit.

Another 1 billion yuan will be collected from the sale of lottery tickets while the remaining 4 billion yuan will come from state-owned companies, he added.

Reconstruction work is expected to last at least three years. The State Council, China's Cabinet, has ordered 19 provinces in eastern and central regions to adopt work in 18 Sichuan counties and cities that were devastated in the nation's deadliest catastrophe in three decades.

Hui said the death toll may exceed 80,000 given that 18,498 people were still missing as of noon yesterday.

Nationwide, the fatalities from the May 12 earthquake reached 69,181 as of 12pm yesterday. The death toll was 68,669 in Sichuan alone.

Almost 7.8 million houses collapsed during the earthquake and another 24.59 million homes were damaged, Hui said, adding that towns in Beichuan and Wenchuan were nearly leveled.

Sixteen national and provincial-level roads were blocked during the disaster while six railway lines were damaged, Hui said.

Landslides triggered by the quake caused 35 quake barrier lakes to form and 2,473 reservoirs showed signs of risk, Hui added.

Work at 6,443 factories and companies were suspended, according to Hui.