SINGAPORE - Raffles Infrastructure Holdings, formerly known as China Fibretech, said on Monday (Oct 22) that it has entered into a framework agreement to build about 70 kilometres of tourist railways in China with an estimated contract value of six billion yuan (S$1.19 billion).
Raffles Infrastructure's subsidiary Raffles (Chengdu) Investment and Development Co inked the preliminary agreement with the Tourism Board of the People's Government of Dengfeng City and Chengdu Tianfu Railtech Valley Technology Co.
The agreement sets out the preliminary intentions of the parties and is subject to certain conditions precedent, including the signing of a definitive agreement after relevant reports required for construction initiation are completed.
A land surveyor report and an environmental report for each of four individual phases of the project are required.
The Government of Dengfeng City will provide assistance and support to facilitate the project, the company said.
The project is not expected to have any material impact on the group's earnings for the year ended Dec 31, 2018.