Chinese firm, China Railway Construction Corporation, has bagged a $825 million (KSh84 billion) contract to upgrade Zambia’s railway tracks.
According to the company, the upgrade will span across 650 kilometers of lines, and last for a period of eight years.
However, they did not reveal the financiers of project, seeing that Zambia has been keen on cutting its foreign debt, after S&P Global Ratings lowered its credit rating to CCC, eight levels below investment grade.
A CCC rating represents an extremely high risk bond or investment. It is a very speculative grade assigned to a debt obligation, and indicates a considerable doubt that interest will be paid or principal repaid.
China Railway Construction Corporation Limited is a state-owned construction enterprise based in Beijing, China. In 2014, it was the second largest construction and engineering company in the world by revenue.
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