China Railway Construction Corporation (CRCC) has signed an agreement to transfer control of the Saudi Mecca light rail project to its controlling shareholder, China Railway Construction (CRC).
CRC will receive CNY2.08bn ($315.5m) and in exchange will bear and own any profits or losses incurred from the project since the end of October 2010.The company said the sale of the contract would better the implementation of the project in Saudi Arabia, ensure the project's completion ran smoothly and more appropriately deal with the compensation claim issue.
The project is expected to bring losses of CNY4.2bn ($63.7m) to CRCC due to unforeseen costs.
The Saudi Mecca Light Rail became operational in November 2010 for Saudi Arabians and other Persian Gulf-state nationals only, and was scheduled to complete all tests and become fully operational by May 2011.
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