Energy production will also be placed high on the agenda, said Wang Zhibao, deputy director of the Office for the Development of the Western Regions under the State Council, or the central government, at a press conference during the first session of the 10th National Committee of the Chinese People's Political Consultative Conference (CPPCC) Saturday afternoon.

The press conference focused mainly on China's poverty alleviation endeavor and development of the mid-western region.

Wang said it constitutes an issue of major concern to the entire nation to keep improving ecological environment and give top priority in the development of the western regions.

He said the ecological projects to be undertaken include the protection of natural forests, return farmland to forests, controldesertification, and close pastures for the renewal of grassland.

More than 500 billion yuan (more than US$60 billion) offunds have been earmarked to efforts in the above four aspects, henoted. And all the funds will be directly transferred to the farmers.

Energy industry is expected to be a key factor for the development of China's western region, which would be turned into one of the country's leading energy production bases, he added.

Meanwhile, he acknowledged that a major energy project of transmitting electric power from the western regions to the eastern coastal areas was expected to involve a total investment of over 500 billion yuan (US$60.24 billion).

Moreover, another project of piping natural gas from the western regions to the east China region, a land-mark project in the western development drive, will cover a number of routes, Wangnoted, with the most vital route starting the Tarim basin in northwestern part of Xinjiang autonomous region and traversing a long distance right to the destination of the leading financial center of Shanghai in east China.

(Xinhua News Agency March 8, 2003)