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SOE inks deal in Mauritania to build drainage works

(Xinhua)
Updated: 2010-02-09 11:49
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BEIJING: China Gezhouba Group Co Ltd (CGGC), a leading State-owned enterprise on infrastructure construction of China, signed a 1.36-billion-yuan ($200 million) contract with Drainage Board of Department of Energy, Mauritania, said CGGC Tuesday.

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In a statement to the Shanghai Stcok Exchange, CGGC said the contract allows it to construct the first-stage project of drainage works for the Nouakchott, the capital city of Mauritania. The project will last 42 months.

CGGC said the contract signed Friday in Nouakchott belongs to the EPC (Engineer Procure Construction) type. Given the contract is a long-term one, CGGC predicts little influence on its net profit in 2010. The contract is waiting to be approved by both governments, according to the statement.

Shares of the CGGC opened slightly lower at 13.56 yuan per share, down 0.22 percent compared with the previous close, despite the contract message.
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