"These projects have been placed under strict supervision and public scrutiny," she said.

"Auditors from the local audit office are requested to inspect and review the fiscal condition of every project since its beginning, and after the auditors give the OK to the project's financial report, the aid office and the development and reform commission will then appropriate funds to it."

If the funds from Shanxi exceeds 50 percent of the total investment in a project, auditors from Shanxi will come to Fukang to inspect the accounts, Chen said, adding that no misuse of aid funds has been found so far.

The Shanxi government has hired a third-party agency to assess the effects and consequences of projects in Fukang that use aid funds, Chen said.

Since March 2010, the 19 regions designated to aid Xinjiang have financed 3,120 projects in the autonomous region, which involved 33.7 billion yuan, according to a working conference on aid projects in Xinjiang that was held in Urumqi last week.

In the first half of this year, 742 aid projects were launched, involving 8.8 billion yuan.