Pudong development in fast lane with ratio scheme

Pudong is pioneering a ratio scheme to accelerate construction development and improve the business environment.

Shanghai is a city of scarce natural resources, and rapid urbanization is increasingly consuming its land, water and green space. Now Pudong, an engine driving the city’s development, has figured out a solution.

The Pudong government has introduced a ratio system, setting land use quotas and releasing coupons to build resettlement housing. Also, it has made a sensible balance on use of forests, waterways and green lands by digging new rivers and planting more trees after they are occupied to make room for major construction projects.

Previously, it was not easy for developers to get those “ratio coupons.”

They were required to make plans by themselves, such as the area of land to be used, and go to authorities to get approval. It was time-consuming, and sometimes they were rejected just because quotas had been fulfilled.

Today it’s completely a different story. Authorities go to developers to learn about their needs and make plans as a whole, according to Fang Xi, deputy director of the Pudong Development and Reform Commission.

He gave an example of the renovation of a 18.7-kilometer section of the Hunan Highway. It only took 10 days for developers to get official approval to start construction because authorities had the understanding of how much land would be used.

“Previously, developers came to us, telling us what they wanted," Fang said. "Today, we come to them, asking them what they want."