Venezuelan railway goes to China… possibly

The China Railway Engineering Corporation (CRECG) has signed a US$ 7.5 billion contract for the design and build of the Tinaco to Anaco railway project in Venezuela.

The contract agreed between the Instituto de Ferrocarriles del Estado (The Venezuela Railway Authority) and the Venezuelan subsidiary of CRECG is now under review and consideration by CRECG in China.

Pending board approval, construction will be handled by the main Group rather than its Venezuelan subsidiary.

A statement from CRECG in China said the company will only undertake the contract if it meets full compliance with the requirements and rules governing the listing of securities on the Hong Kong stock exchange.