China Railway Construction Corp. wins $12b railway project in Nigeria
China Railway Construction Corp. has signed a deal worth in the region of $12 billion with the Nigerian government to build a coastal railway.
China and Nigeria have signed an official construction contract as part of a deal worth $12 billion. The construction project will be China's largest overseas contract to date.
The contractor will be China Railway Construction Corp. and it will build a railway along the coast of Nigeria. The project is expected to create approximately 200,000 local jobs and could help China gain a firmer landing in resource-rich regions of Africa.
“We set a high standard for this project, and hope the standard would become a benchmark for China’s mechanical and construction exports in the future,” says Cao Baogang, CRCC vice chairman.
The announcement comes shortly after Mexico abruptly scrapped a billion-dollar high-speed rail contract with CRCC over alleged transparency concerns.
China is pumping money into the railway sector to shore up slowing growth - as well as to showcase its infrastructure technology worldwide. CRCC’s Shanghai-listed shares were up more than two percent Thursday.
France to invest €1.8bn in Egypt’s infrastructure
France will invest a total of €1.8bn into Egypt’s infrastructure focusing specifically on upgrading the Cairo Metro, building a railway to Sudan, and developing water and energy schemes. Officials have called the investment a “major boost to bilateral cooperation”.
The Cairo Metro
Included in the financing is a concessional government loan of around €800mn to upgrade Line 1 of the Cairo Metro, introduced in the 1980s. The financing will pay for 55 trainsets for the line and is provided by the French engineering company, Alstom.
Line 6 is also due to be upgraded using further state-guaranteed loans worth up to €2bn. Bruno Le Maire said that this would be negotiated over the next six months. France and Egypt have worked in close cooperation ever since Abdel Fattah al-Sisi became president in 2014, despite differences over human rights and strong criticism of Egypt by rights activists and some foreign states.
Nine more projects over the next half a decade
A further €1bn from France’s development agency, Agence Française de Développement (AFD), aims to cover a range of other projects over the next half a decade.
These projects include a railway line between Aswan, southern Egypt, and Wadi Halfa in Sudan, as well as several projects in the renewable energy and water purification industries. Bruno Le Maire, France’s Finance Minister, said Egypt was a “strategic partner and commercial dealings with it would be developed. France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans,” he said.
According to Le Maire, the AFD will also €150mn to support the construction of a universal health insurance programme. French contractors such as Vinci and Bouygues have a long history of working on the Egyptian capital’s underground system.
Talking about the relationship between France And Egypt, Le Maire concluded: “France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans”.