China, which boosted its water investment budget by 7 percent this year, plans to use financial enticements to attract private capital to major water projects.

The nation will encourage investment by allowing private investors to buy special licenses or take stakes in water projects, Zhang Minglun, deputy head of the investment division under the National Development and Reform Commission, said on Tuesday at a briefing in Beijing, according to a transcript posted on the website of china.com.cn.

The government plans to prioritize investment support on projects that have private investors by injecting capital and offering subsidies or loans with preferential terms, Zhang said. China will also improve how water project prices are set, he said.