(Yicai) Oct. 31 -- Chinese local governments have been actively arranging their applications or preparations in an attempt to secure some of the CNY1 trillion (USD136.7 billion) additional government bonds that the central government will issue in the fourth quarter.

The head of the development and reform commission of Yueyang, a prefecture-level city in central Hunan province, learned about the additional government bonds in August and kicked off related works in advance, the commission announced yesterday. As of Oct. 13, the commission selected and submitted 928 projects, applying for funds worth CNY73.2 billion (USD10 billion), it added, noting that the applications are awaiting review by the National Development and Reform Commission.

The State Council will issue additional government bonds worth CNY1 trillion to support various provincial-level regions’ disaster prevention and relief capabilities in the fourth quarter, according to a decision approved by the Standing Committee of the 14th National People’s Congress, China’s top legislative body, on Oct. 24. The funds will be handed over to local governments via transfer payment, meaning local governments will not have to repay them.

On Oct. 26, the development and reform commission of China’s southwestern Sichuan province held a video conference explaining the additional issuance of government bonds, requiring areas under its administration to prepare for related applications, attempting to earn the biggest quota among provincial-level regions.

Relevant government departments in Hebei and Jiangxi provinces also made similar work arrangements, holding conferences or issuing documents about the preparation work to secure the funds, Yicai learned.

Since last month, the NDRC and other relevant authorities have organized various regions to enhance their ability in disaster prevention and relief by focusing on post-disaster reconstruction, NDRC Deputy Secretary-General Zhang Shixin said at a press briefing on Oct. 25. The authorities has selected a batch of significant projects and simultaneously urged local governments to speed up their preparation works to lay a solid foundation for the issuance of the additional government bonds, Zhang added.

Local government will use the funds in eight major areas, including rebuilding disaster-hit areas, key flood control projects, natural disaster emergency capacity improvement, and urban drainage and waterlogging prevention and control, Xinhua reported on Oct. 24. Half of the proceeds are expected to be used this year, while the remaining half will be carried over to next year.

Editors: Dou Shicong, Futura Costaglione