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Argentina,China : CHINA and ARGENTINA ink loan agreement

July 22, 2014

During the state visit of Chinese president Mr Xi Jinping to Buenos Aires, Argentina and China have entered into a $US 2.1 billion loan agreement.

The loan amount is aiming at funding the revival of the metre-gauge Belgrano Cargas network. The agreement has been signed by Argentina's transport secretary Mr Alejandro Ramos and Mr Wang Hong, vice-president of China Machinery and Equipment Corporation (CMEC).

The loan agreement is part of a wider $US 7.5 billion trade agreement between the two countries. In addition, the Argentine treasury has even agreed to provide $US 370 million towards the rehabilitation of the network, taking the total investment to nearly $US 2.5 billion.

According to the government, the investment will include 100 new locomotives and around 3500 new wagons, acquisition of components to return existing wagons to service, and track renewals that are urgently needed on much of the 7350km network.

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Source: TendersInfo (India)

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