China to finance section of Malian railway with $1.1 billion
The loan carries an interest rate of 2 percent and will be repaid over a 30-year term.
Along with the financing, the deal provides for the training of engineers and technicians to work on the newly remodeled railroad. Twenty-two train stations will be rebuilt.
The Senegalese section of the railway stretches 372 miles and is owned by China Railway Construction Corp. International.
The total cost of the railway project on the 800-mile-long line will be $1.4 billion. The line is crucial for trade between Mali and Senegal and has needed rebuilding for many years.
Originally, upkeep of the railway was entrusted to French corporation Advens, with which Malian and Senegalese officials signed a 25-year operating agreement. Citing negligence, the officials revoked the agreement.