The consortium made up of Portuguese construction group Mota-Engil and the China National Complete Engineering Corporation has signed a contract with Thai Moçambique Logística to build a 500-kilometre railway in Mozambique, the group said in a market filing.
Mota-Engil also said in the statement filed with the Portuguese Securities Market Commission (CMVM) that the project, which is part of the logistics corridor that will connect the Moatize mining area to the port of Macuse in Zambezia province, will have a contractual duration of 44 months and cost US$1.389 billion.
China National Complete Engineering Corporation is a subsidiary of the China Machinery Engineering Corporation listed on the Hong Kong Stock Exchange. This project is the most valuable contract in the history of the Portuguese group and the first consortium (50/50) between Portuguese and Chinese companies.
The statement said that given the high level of goods and services coming from China, it is very likely that Chinese export credit institutions, in the case of China’s Export and Import Bank, could contribute “positively” to the process of setting up financing for the project.
The start of construction work may be in 2018, “once the client’s negotiations to finance the project are concluded” said the statement dated 13 June.
The CEO of Thai Moçambique Logística, José Pires da Fonseca announced last March that the project had been awarded to the consortium made up in equal parts by the Mota-Engil group and the China National Complete Engineering Corporation. (macauhub)