China Railway Group Limited (CREC) announced that one of its subsidiaries has won the Hungary-Serbia rail contract with another Chinese company and a Hungarian peer, Xinhua reports.
The consortium will jointly construct the Hungarian section of the railway, which links the Serbian and Hungarian capitals.
The contract is estimated to be worth about 10 billion yuan (USD 1.57 billion), among which the CREC and its Chinese peer, the international subsidiary of China Railway Corporation (CRC), jointly hold a share of 85 percent.
China signed separate deals with Hungary and Serbia to construct and revamp a rail link between Budapest and Belgrade. Chinese Premier Li Keqiang announced earlier that the construction of the railway line would be underway by the end of this year and be finished within two years.
The Budapest-Belgrade rail link could cut travel time between the two capitals by more than half.
In December 2014, Serbia’s Prime Minister, Aleksandar Vucic, his Hungarian counterpart, Viktor Orban, and Chinese Prime Minister Li Keqiang signed the agreement on the construction of the Belgrade-Budapest railway. The 370 km-long railway will require investments of EUR 1.5-2 billion and includes extension and modernisation works. Around 334 km of line of the total length has to be converted in double, electrified line.
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