(Yicai Global) Sept. 18 -- Two Chinese firms have penned a USD800-million contract with Bangladesh Railway to construct rail lines in the country, state-owned news agency Xinhua reported.
China Railway Group Ltd. [SHA:601390;HKG:0390] and China Civil Engineering Construction Corp. both won spots to build a line connecting the Bangladeshi capital of Dhaka with Cox's Bazar in the southeast of the country. The Chinese companies will also build related infrastructure.
The 101-kilometer rail link is scheduled to be completed by the end of 2020.
The project is one of Bangladesh's top ten priorities and the key route for the Trans-Asian Railway Network in the country, which extends to Kunming in China through Myanmar and serves as an important part of the economic corridor including the three countries and India.
After completion, the line should dramatically improve traffic problems in Bangladesh, boost tourism, promote rail links with Myanmar and improve regional economic development in Bangladesh and South Asia.