Raffles (Chengdu) Investment and Development has signed a framework agreement to construct a 70km tourist railway in China, with an estimated contract value of CNY6bn ($865.7m).
The agreement was signed with the Tourism Board of the People’s Government of Dengfeng City, the People’s Republic of China, and Chengdu Tianfu Railtech Valley Technology.
The project is set to receive assistance and support from the Government of Dengfeng City.
The agreement sets out the parties’ preliminary intentions and is subject to the completion of relevant reports that are needed to initiate construction.
A Land Surveyor Report and Environmental Report on each individual phase of the project are required.
Phase one will take place from 2018–20, Raffles will complete the construction of a tourist railway between Songshan’s Tourist Centre and Shaolin Temple Tourist Area.
The second phase is set to run from 2020–22 and will involve railway construction from Songshan’s Tourist Centre to Songshan’s Study Courtyard and Zhongyue Temple.
Phase three will run from 2022–24. Raffles will build a railway between Zhongyue Temple to Luya Waterfall and Safari Zoological Park.
The final phase is targeted for 2024–26 and will see the constructions of a railway between Safari Zoological Park and Chaoyanggou Xiqu Town.
The project is not expected to have any material impact on the company’s net tangible assets and earnings per share for the financial year ending 31 December.
Further announcements will be made by the company upon execution of the definitive agreement following project reports.