China Railway Construction Corp signs $5bn in African infrastructure deals

China Railway Construction Corp signs $5bn in African infrastructure deals

China’ largest railway constructor, China Railway Construction Corp, has won two infrastructure projects in Africa with a combined value of US$5.5 billion.

The first, an inter-city railway project in Nigeria known as the Nigeria Ogun State Intercity Mass transit Project, is valued at over US$3.5 billion.

The Chinese company also won a $1.93 billion residential construction project in Zimbabwe.

Financing for the Nigerian rail project is not yet finalised.

However, it has been reported China will allocate $62 billion of its foreign exchange reserves to three state-owned “policy banks” in order to support its New Silk Road project.

ADVERTISEMENT

The project is aimed at creating infrastructure links with foreign markets.

The People’s Bank of China will direct $32 billion to China Development Bank and $30 billion to Export-Import Bank of China.

Chinese president Xi Jinping had met his Zimbabwean counterpart, Robert Mugabe, last week in Indonesia on the side-lines of the Asian-African Summit.