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Central African Republic : RIO inks $US20 billion INVESTMENT FRAMEWORK CONTRACT

May 30, 2014

An investment framework deal has been inked by Rio Tinto (RIO) that would be the biggest combined iron ore and infrastructure project ever developed in Africa.

The Government of Guinea, The International Finance Corporation (IFC) which is part of the World Bank and Aluminium Corporation of China, commonly known as Chinalco are the other partners included in the project.

Rio and its partners have declared that they would gather a consortium of investors who will finance, build and own a multi-user 650km railway and deep-water port in the African Republic.

The project has the potential to double Guinea s current Gross Domestic Product (GDP).

Also the consortium is convinced, which it would stimulate employment and estimates it will create 45,000 jobs throughout the economy.

The joint venture also claims that new and upgraded roads and the development of fibre and wireless communications will underpin indirect economic development for communities along the infrastructure route known as the Southern Growth Corridor .

As per State Minister of Mines and Geology of the Republic of Guinea Kerfalla Yansane the project has the potential to provide the global market with highly competitive ore for more than 40 years.

He also added that this estimated $US20 billion project will boost Guinea s whole economy and spur the country s Southern Growth Corridor through mining, agriculture, forestry, livestock and trade.

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Source: TendersInfo (India)

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