China inks $5.5b infrastructure construction contracts in Nigeria
CCECC NIGERIA LIMITED, a subsidiary of CRCC China-Africa Construction Limited which is a subsidiary of the Company, entered into the Nigeria Ogun State Intercity Rail Mass Transit Project Contract with the Ogun State Government, Nigeria. The total mileage of the Ogun State Intercity Rail Mass Transit Project is 334 kilometres. Standard gauge and single track were designed for the project under the standards of the PRC with a designed speed per hour of 120 km/h.
The contract value amounts to approximately US$3,506 million (the price was estimated on the basis of conceptual design, while the final price will be determined by both parties upon negotiations with reference to the construction design), which is equivalent to approximately RMB21,464 million, representing approximately 3.63% of the operating revenue of the Company for the year 2014 under the PRC accounting standards.
The Nigerian project further cements the company's leading role in the Nigerian construction industry, and is also a milestone in the "going global" of Chinese railway, said Meng Fengchao, board chairman of CRCC.
The financing for the project has not been finally implemented at current stage, and the formal implementation of the project is subject to the final implementation of the financing.
CRCC China-Africa Construction Ltd is now the largest rail transit contractor in Africa.