Published on : Apr 28, 2015
The largest railway contractor in China, China Railway Construction Corp. (CRCC) recently signed contract for two large infrastructure development projects for rail transit in Africa that are worth US$5.5 billion.
The two projects are inclusive of a railway development project in the African country Nigeria for inter-city which is worth US$3.506 billion, which is called the Intercity Transit Project in Nigeria for Mass Transit. The length of the railway is going to be 334 kilometers and will have a speed of 120 km/ hr.
The financial details of the project are not finalized yet. However, as per local media China will put aside US$62 billion foreign exchange corpus for three government operated ‘policy banks’. This is aimed at supporting the New Silk Project in order to create infrastructure bonding with overseas markets.
As per a reliable report source, The People’s Bank of China will allocate US$32 billion for the China Development Bank (CDB) and further allocate US$30 billion for the Export-Import Bank of China (EXIM).
The inking of the Nigerian development project further strengthens the company’s role as a leader in the Nigerian construction industry. This is also a stepping stone to go ‘global’ of the Chinese railway. The Chinese railway construction company also bagged a residential project worth US$1.93 billion in Zimbabwe.
The President of China Xi Jinping and his Zimbabwean peer Robert Mugabe had a meeting last week at the sideline of the Asian-African Summit in Indonesia. The infrastructure development contracts were signed a little ahead of the forthcoming sixth Ministerial Conference of the Forum on China-Africa Cooperation.
The joint venture called as CRCC China-Africa Construction Ltd, which is completely-owned corporation of CRCC accounts for the largest contractor in the African continent for rail transit.