Central enterprises China Railway Construction took 20 billion Saudi investment projects light loss
:China Railway Construction Corporation (CRCC) 21 Sunday night announcement that Saudi Arabia Mecca for the light rail project to properly handle the claim, the listed company and its controlling shareholder China Railway Construction Corporation China Railway Construction Corporation (China Railway Construction Corporation) signed the "Mecca of Saudi light on matters relating to arrangements for the project agreement", the Saudi project was transferred to the China Railway Construction Corporation.
China Railway Construction Corporation (CRCC) 21 Sunday night announcement that Saudi Arabia Mecca for the light rail project to properly handle the claim, the listed company and its controlling shareholder China Railway Construction in China Railway Construction Corporation (China Railway Construction Corporation) signed a "light rail project on Mecca, Saudi Arabia arranged agreement related matters", the Saudi project was transferred to the China Railway Construction Corporation.
Under the agreement, Saudi Arabia items listed companies will be locked in the biggest loss of 1.385 billion yuan, representing an announcement in October last year, 4.153 billion yuan is expected to greatly reduce the loss.
Protocol specific agreement: since October 2010 after 31, China Railway Construction Corporation China Railway Construction to exercise and perform light rail project in Mecca, Saudi Arabia under the EPC contract and general contract due to all the rights arising obligations, and thus should pay 2.077 billion yuan of China Railway Construction.
The same time, although one claim transferred to the China Railway Construction Corporation, but the amount will continue to give priority to claims for compensation for the loss of existing listed companies, and ultimately the rest will return all listed companies, ie, the listed lock limit losses in the same time, there is further reduce the future possibility of loss or losses.
China Railway Construction Corporation holds shares in China Railway Construction 7.566 billion, total equity of 61.33%. As the central rate of China Railway Construction Corporation, more appropriate treatment of Saudi projects, especially the claim is more conducive for the best possible results. Program is in fact the shareholders of listed companies and holding companies made a "win-win" arrangement.
According to the announcement, as of October 31, 2010, the Saudi project is expected to total revenue of 12.051 billion yuan contract, the estimated total cost of 16.045 billion yuan, and the other financial costs occurred 154 million, the project is expected to net loss of 4.148 billion yuan, 3.462 billion yuan of which contains part of the accumulated net losses have been completed and the unfinished part of the 686 million provision for expected losses.
Obtained from the owner's claim income (if any) will be arranged in the following order: If you claim income is less than 1.385 billion yuan, total income of the claimant owned China Railway Construction have; if the claimant earned more than 13 .85 billion but less than 3.462 billion yuan, while China Railway Construction have 1.385 billion yuan, and the rest (up to 2.077 billion yuan) have owned China Railway Construction Corporation; if the claimant earned more than 34.62 billion, is entitled to 1.385 billion yuan of China Railway Construction, China Railway Construction Corporation entitled to 2.077 billion yuan, and the remaining part of the China Railway Construction Corporation to cover the project the amount of late loss (if any); compensation for project follow-up of net then there are the remaining losses, the remaining money to enjoy all the returns to non China Railway Construction.
Mecca, Saudi Arabia Saudi Arabia light rail project as two heads of state witnessed the signing of the project in person, is by far the world's transport capacity per unit of time designing the largest and most complex business model, the shortest construction period of light rail projects. Such a prediction has been major foreign contractors for "mission impossible", China Railway Construction completed on schedule and achieve traffic.
However, after the project started, as the owners have made new functional requirements, mandatory changes to increase quantities, underground pipe network and land acquisition is seriously lagging behind other reasons, lead to project a substantial increase in workload and cost of inputs, planned duration periodically delayed. In this case, China Railway Construction to ensure the progress of construction period, an increase put a lot of manpower, material and financial resources into the project cost exceeded expectations.
China Railway Construction has been under the original contract, to submit a change to the owners and claim information, the Saudi side also has promised a special committee set up after the end of the project to discuss issues related to claims and compensation.