According to the Shanxi provincial transportation bureau on May 20, state-owned coal enterprises including Shanxi Coking Coal Group Co Ltd and Datong Coal Mining Group Co Ltd are planning to set up a transportation subsidiary with an investment of 1.5 billion yuan ($235.5 million) each.

Duan Jianguo, bureau chief of the Shanxi provincial transportation bureau, said that the investment from large state-owned coal enterprises would help solve the capital shortage for expressway construction this year, to realize the goal of constructing a 1,000 kilometers expressway by the end of 2012.

The state has begun to tighten its monetary market and clean up the government financing platforms since 2011. As a result, the construction for a high-speed railway and expressway across the country has both been confronted with the difficulty of fund shortages. It is same for Shanxi province.

The subsidiary company of the coal enterprises is expected to be established by the end of this month. Furthermore, 1.5 billion yuan from each enterprise and another 10 billion yuan of prepaid appropriation will be received from the Shanxi provincial financial department.