The private sector is playing an important role in protecting historic buildings in Suzhou, an ancient city in East China's Jiangsu Province, it has been revealed.

Statistics show that among the 42 million yuan (US$5.25 million) invested into the preservation projects of more than 100 historical buildings in Suzhou during the past three years, one-third of it came from private enterprises.

According to Chen Rong, vice-director of the city's cultural relics protection bureau, the city issued a policy in early 2004 to encourage private companies to preserve the historical buildings owned or rented by them.

It has enabled them to draw loans for up to 2 million yuan (US$250,000) from banks for special preservation projects, with reduced interest rates.

The municipal government will also pay up to 10 percent of the costs as a prize if projects pass certain conditions once they have been completed, according to the policy.

"The annual 10 million yuan (US$1.25 million) governmental fund in heritage protection was not enough," said Chen.

"The support of private capital helps protect more ancient buildings."

According to Chen, the protection efforts made by the private sector mainly focuses on non-listed historical sites and buildings, as cultural relics at provincial and national levels are usually covered with funds given by the State or provincial financial bureaux.

More than a dozen private enterprises have been involved in projects, and more than 30 ancient sites in the city have been preserved due to their efforts during the past three years, said Chen.

New Canglang Real Estate Company completed a renovation project of two ancient courtyards last year.

"By restoring the buildings to their original style, visitors can sense the strong flavour of ancient culture. They are also of high market value because they have been equipped with modern equipment during the restoration," said Shi Jiandong, general manager of the company.

Some companies have also taken steps to improve public ancient sites.

Last year, Dongting Mountain Mineral Water Co Ltd set up a fund to donate 100,000 yuan (US$12,500) annually to preserve hundreds of ancient wells in the city.

The preservation efforts made by private enterprises have been welcomed by local residents.

Liu Xi, a 22-year-old woman, said the measures not only benefited historical sites, but also improved the living conditions for citizens in old areas of the city.

With a history of 2,500 years, Suzhou now boasts 539 listed cultural relics and 1,270 non-listed but recognized cultural relics.

(China Daily June 12, 2006)