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Mecca monorail deal marks Saudi visit by China's Hu
Riyadh (AFP) Feb 11, 2009 Chinese President Hu Jintao wrapped up his second day in Saudi Arabia on Tuesday with a contract to build a monorail in Islam's holiest city and with a pact on oil and petrochemicals supplies under his arm. The 1.8 billion dollar deal for China Railway Corp to build a mass transit system for Muslim pilgrims on the annual hajj pilgrimage to Mecca served to highlight China's growing role as a contractor for infrastructure in the kingdom, even as it imports huge amounts of Saudi oil to power its economy. The contract, signed late Tuesday night by China Railway Corp and Prince Miteb bin Abdulaziz, head of the commission for developing the holy cities of Mecca and Medina, was the second rail project in a week involving Mecca to be awarded to a Chinese railway builder. On Friday, a consortium including China Railway Engineering won a civil works contract, also worth 1.8 billion dollars, for a 444-kilometre (275-mile) high-speed railway to link the holy cities of Mecca and Medina via Jeddah. Hu arrived in Saudi Arabia Monday aiming to cement the growing ties between Beijing and Riyadh, with China's huge manufacturing economy heavily dependent on oil and petrochemicals from the world's biggest oil exporter. The Mecca projects and other deals announced during the visit showed that China is determined to get a share of Saudi Arabia's programme to undertake 450 billion riyals (120 billion dollars) in major infrastructure, education and new cities projects over the next five years. "China-Saudi Arabia ties have developed rapidly and reached an all-time high since the heads of states exchanged their visits in 2006," Hu told his host, Saudi King Abdullah, Monday night, according to China's Xinhua news agency. As a dense sandstorm enveloped Riyadh on Wednesday morning, the Chinese leader visited Riyadh Cement company, which has just contracted China's Sinoma International Engineering to expand its production lines. Also announced was a tie-up between the Saudi group ACWA Power International, which builds power and desalinisation plants, and Shanghai Electric Power Generation Group, to work together on various projects in the region. On Wednesday afternoon Hu met Abdulrahman Hamad al-Attiyah, secretary general of the Gulf Cooperation Council, which groups Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, and the United Arab Emirates, many also important suppliers of oil and downstream oil products to China. According to the Saudi state news agency SPA, the two discussed trade, energy and investment issues. The Mecca monorail contract was so far the highlight of the three-day visit, which ends Thursday with Hu's departure for Africa. The line will link Mecca with the holy sites of Mina, Arafat and Muzdalifah, which are visited by massive tides of pilgrims during the hajj. The project is set to be completed over four years, but will be ready to operate at 35 percent capacity for the hajj of late 2010, SPA said. According to media reports, the proposals include four elevated tracks intended to carry up to 20,000 passengers an hour. China and Saudi Arabia also signed late Tuesday an agreement covering cooperation in developing and trade in oil, natural gas, petrochemicals and minerals to help China secure long-term natural resource supplies for its giant economic machine, according to SPA. China is already one of the top buyers of oil from Saudi Arabia, importing 36 million tonnes of Saudi crude in 2008, according to Chinese figures. On Thursday Hu will head off to Mali, Senegal, Tanzania and Mauritius as part of efforts to strengthen China's relations with the African continent, an important source of minerals and other raw materials for China and a growing market for Chinese exports. Share This Article With Planet Earth
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Saudi-China-French group wins Mecca rail project Riyadh (AFP) Feb 7, 2009 A Saudi-French-Chinese consortium has bagged the 1.8 billion dollar civil works contract for the Mecca-Medina high speed railway, a project official said Saturday. |
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