China Railway Construction Halts $8.3 Billion Nigeria Project
The Nigerian government asked China Railway Construction Corp. (1186) to suspend construction of an $8.3 billion project in the African country, the builder of more than half of China's railroads said in a statement today.
The Ministry of Transportation of Nigeria informed China Civil Engineering Construction Corp., a China Railway Construction unit, of the decision to halt the Lagos-Kano Railway Modernization Project until the contract scope has been redefined, the statement to the Hong Kong stock exchange said.
The project accounted for nearly 14 percent of China Railway Construction's outstanding contract value at the end of September, it added. The process of redefining the contract would take about 90 days.
The 1,315-kilometer (817-mile) railway links the southern Nigerian city of Lagos with the northern city of Kano.
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