China Railway Construction Says Project Halt Won't Hit Earnings

China Railway Construction Corp. said its 2008 earnings and its future developments won't be affected by the halt of a Nigerian railway project.

Expenses incurred for the Lagos-Kano railway project in the African nation are covered by a $250 million pre-payment, the company said in a statement filed to the Shanghai Stock Exchange.

China Railway, builder of more than half of the nation's railroads, is negotiating with relevant parties from Nigeria to discuss the project, it said without giving details.

The company's project reserves are ``sufficient'', and its other overseas projects are operating ``smoothly'', it said.

China Railway said on Nov. 3 that Nigeria suspended work on the Lagos-Kano project. Its stock plunged 18.5 percent the next day. It gained 9.8 percent to close at HK$8.77 in Hong Kong today.

To contact the reporter on this story: Zhao Yidi in Beijing at at yzhao7@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at at lagerkranser@bloomberg.net

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