The Algerian state-owned company specialized in the construction of railway infrastructures IFRAFER and China Railway Construction Corporation (CRCC) signed in Algiers on Feb. 15 a Memorandum of Understanding for the establishment of joint venture specialized in the construction of railways, APS reports.

The agreement was initialed by INFRAFER’s CEO, Slimane Bouchama, and deputy director general of CRCC International, Wei Waizheng, in the presence of Minister of Transport, Boudjemaa Talai.

The Algeria-China joint venture will mainly work in projects involving the construction of high-speed railway lines, a sector where INFRAFER is yet to have experience.

“Used to build traditional railway lines, INFRAFER now plans to get acquainted with high-speed railways,” Bouchama said.

The accord between INFRAFER and CRCC also involves the construction of a plant where will be manufactured parts for the electrification of railways and signaling systems, telecommunication, railway studies and important works for the construction of bridges and tunnels.

“After the signing of this agreement, we will wait for the approval of the State Participation Coucil (CPE) to finalize shareholders’ pact and set the capital of the firm which is to effectively be built in the next six months,” INFAFER’s CEO said.