Chinese CRCC to transfer Saudi project to China Railway Corporation

NetEase Finance January 21 News China Railway Construction evening issued a notice that the company and its controlling shareholder China Railway Construction Corporation signed an agreement to transfer the Saudi project to the Central Railway Corporation, the two sides on the follow-up of the distribution of claims income arrangements. China Tienia Shate Matsafa to Mugodasha Light rail has opened operation in November 2010, and in accordance with the "Shatmegassafa to Mugodasha light rail contract" agreed to achieve more than 35% transport energy. At present, the project is still in the process of continuous propulsion, to be completed in May 2011 all commissioning, and to achieve 100% transport energy.　　Under the agreement of the general contract, China CRCC will also be responsible for three years of operation and maintenance of the project.　　China CRCC said that in order to better promote the implementation of the Shatmega light rail project, to ensure the smooth completion of the project, and to properly handle the project claims, the company on January 21, 2011 with the controlling shareholder China Railway Construction Corporation signed the agreement on the Shatmega light rail projects related arrangements. The two sides agreed that, since October 31, 2010, the China Railway Corporation to exercise and fulfill the Chinese railway construction in Saudi Mecca light rail project general contract project and all rights and obligations arising from the general contract contract, China Railway Construction Corporation should pay 2.077 billion yuan to the Chinese iron Construction, China iron construction no longer bear　　Enjoy the late losses/profits of the Saudi Mecca light rail project, and the later losses/profits are all borne by the China Railway Construction Corporation.　　Through these arrangements, China CRCC The Saudi project's biggest losses to 1.385 billion yuan (3.462 billion yuan of the completed part of the cumulative net loss, minus the 2.077 billion yuan on the price), compared with the last October announcement of the 4.153 billion yuan expected losses significantly reduced. China Railway construction also said that the claim is transferred to China Railway Corporation, but the claimed amount will be used as a priority to compensate for the loss of the Chinese railway construction, and eventually the remaining parts will be returned to the company.　　In other words, China's iron construction in the lock loss limit at the same time, the future existence of further reduce losses and even the possibility of turning around. As of January 19, the closing date of the suspension, China Railway built 7.17 yuan, Rose 3.91%.