China and Nigeria have signed a deal on Thursday worth nearly $12 billion to construct a railway along the West African country’s coast, the China Daily reports, citing a statement from China Railway Construction Corp (CRCC).
The $11.97 billion contract was awarded to China Railway Construction Corp (CRCC) and is China’s single largest overseas contract project, according to the China Daily.
The railway will have 22 rail stations along the 1,402 kilometers of tracks across the coast of Nigeria and will link Nigeria’s economic capital Lagos in the west with Calabar in the east, according to the report.
The CRCC said that trains travelling on the railway will be able to travel at a top speed of 120 km per hour.
“It is a mutually beneficial project,” said Meng Fengchao, CRCC Chairman, adding that the railway project will adopt Chinese technological standards and will result in equipment exports from China worth $4 billion, such as construction machinery, trains, and steel products.
“Meanwhile, the project will create up to 200,000 local jobs, directly or indirectly. Up to 30,000 fixed job posts may also be provided when the railway is operational,” Meng said.
Two weeks ago Mexico scrapped a $3.75 billion contract to build a high-speed railway that it had awarded a Chinese-led consortium which included CRCC.
“This is the decision of the president and the essential point is more transparency and clarity, so there is no doubt about the project,�? Gerardo Ruiz Esparza, Mexico’s communications and transportation minister said, following the announcement of the cancellation of the contract.
The cancellation of the contract came just days after it had been awarded to the Chinese-led consortium that included Mexican firms with close ties to the country’s ruling party.
The cancellation also came just prior to the Asia-Pacific Economic Cooperation (APEC) conference, in which Mexican President Enrique Peña Nieto attended, alongside Chinese President Xi Jinping.
Source: China Daily
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