Beijing announced on Friday it will spend 23 billion yuan ($2.9 billion) on the city's infrastructure to ensure a successful Olympic Games.

Chai Xiaozhong, vice-director of the Beijing Municipal Development and Reform Commission, said the investment marked an increase of 15 percent over last year.

The investment will cover eight key areas such as transportation, public service, energy exploration and saving, the industrial environment and public security.

The city will spend 6 billion yuan ($750 million) to improve its transportation and public service infrastructure, focusing on areas near the Olympic stadiums.

Another 7 billion yuan ($875 million) will be used to improve infrastructure and public service systems in the suburbs.

Chai stressed the Olympic stadiums and other construction projects would be given top priority and would be completed as planned.

Under the plan, all 31 Olympic stadiums and five attached projects will be completed this year. Sixty-six road and bridge projects near the Olympic stadiums will also be finished.

Chai said the city's gross domestic product (GDP) saw a year-on-year rise of 11 per cent in 2006, realizing a continuous double-digit economic growth over eight years. Its per capita GDP surpassed $6,000 in 2006.

But Chai pointed out there were still many problems, particularly the widening income gap between the city's urban and rural residents.

The average disposable income of Beijing's urban residents was 20,000 yuan ($2,500) last year, an increase of 12 percent over 2005.

In contrast, Beijing farmers had an average 8,560 yuan ($1,070) at their disposal, an increase of 8 percent over 2005.

In 2006, Beijing had 15.8 million permanent residents, an increase of 420,000 over 2005 and the fastest growth on record.

Chai said the city's growing population is exerting intense pressure on the city's natural resources and environment.

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