YINCHUAN, May 2 (Xinhua) -- Northwest China's Ningxia Hui Autonomous Region is to invest 4.7 billion yuan (566 million U.S. dollars) this year to build 16 key infrastructure facilities, 700 million yuan (84 million dollars) more than last year.

This is part of the local government's effort to improve investment environment in response to the State's policy of developing China's western regions.

Half of the investment will go to highways, water-control facilities and urban construction sectors, according to a local official.

This year, Ningxia will spend 2.6 billion yuan (31 million dollars) on five key highway projects, including two expressways. Meanwhile, the local government will also speed up the construction of telecommunications. At present, an average of 100 people own eight telephones in Ningxia, exceeding the national average.

To fight against its long-standing drought problem, Ningxia has built many water-control facilities over the past years. The Shabotou irrigation works has been listed as one of the ten State key projects in China's western regions this year and cost 1.3 billion yuan (157 million dollars).

Funds for urban construction of Yinchuan, capital of the region, will exceed 3.1 billion yuan (373 million dollars) during the Tenth five-year plan (2001-2005) period.