China, Nigeria Sign $12B Bullet Train Agreement

Posted: November 24, 2014 in Econ 101, Technology and Energy

SOURCE: http://atlantablackstar.com/2014/11/22/nigeria-china-sign-12bn-bullet-train-agreement/

Nigeria, China Sign $12bn Bullet Train Agreement
November 22, 2014 | Posted by Megan Reed

0023ae6cf3691203d90208A state-owned Chinese company has signed a $12 billion agreement with the federal government to build a railway along Nigeria’s coast that is billed as China’s single largest overseas contract, the state media said on Thursday.

China Railway Construction Corp. Ltd. (CRCC) signed the official construction contract with the Nigerian government on Wednesday in Abuja, the Xinhua news agency said.

The Nigerian railway will stretch for 1,402 kilometres (871 miles) along the coast, linking Lagos, the financial capital of Africa’s largest economy and leading oil producer, and Calabar in the east, according to the report.

The $11.97 billion deal marks China’s largest single overseas contract project so far, it said, citing CRCC.

The news came two weeks after Mexico cancelled a $3.75 billion bullet train deal only days after it was signed with a Chinese-led consortium headed by CRCC — the sole bidder — reportedly due to concerns about transparency.

CRCC Chairman Meng Fengchao said the Nigeria project would adopt Chinese technological standards and lead to $4 billion-worth of Chinese exports of construction machinery, trains, steel products and other equipment, Xinhua said.

It will create up to 200,000 local jobs during the construction and a further 30,000 positions once the line is operational, he said.

“It is a mutually beneficial project,” Meng was quoted by Xinhua as saying. Trains will travel at a maximum speed of 120 kilometres per hour on the link, the report added.

China has dramatically stepped up its presence on the African continent in recent decades as it seeks more resources and new markets for its economy. Trade between China and Nigeria totalled $13.6 billion last year.

Chinese Premier Li Keqiang promised more investment and more Chinese technical expertise during a visit to Nigeria in May this year.

Source: allafrica.com

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