Beijing is considering allowing private finance from both home and abroad to fund new public transport projects.

These investors will be allowed to earn a profit by running transport services, such as bus services, in the capital.

"Rules for public traffic franchising are being drafted," Liu Xiaoming, deputy director of the Beijing Municipal Committee of Communication, said yesterday.

It is part of the city's efforts to improve public transport services.

"Various sources of capital investment are expected to raise the general level of service for buses, metros and light railways, which will directly benefit residents," he said.

But he emphasized that private investors would have to abide by certain government rules.

"Environmentally friendly materials and technology will be encouraged in the city's buses," Liu said.

From January to May this year, 80,000 new vehicles were registered in Beijing, pushing the total number to 2.4 million.

Figures show that 15,000 old taxis have been replaced by new ones this year, and more than 300 buses have been adapted to use liquefied natural gas.

New and better traffic systems will be introduced to cater for the increased number of vehicles.

One method already on trial is a "smart" toll collection system, which has been installed on the Badaling Expressway in the hope of cutting down queues.

Car owners are automatically charged for their journey by a machine that reads a card carried on the vehicle.

The system is expected to be extended to other roads.

This is a golden opportunity to promote "smart" traffic systems, Liu said.

"The 2007 World Intellectual Traffic System Conference will be held in Beijing," Liu said. "China will be the first developing country to host the global industrial conference."

(China Daily June 24, 2005)