Mongolian rail feasibility study planned

Published: Tue, 2015-02-03 08:00

Printer friendly

With the price tag of $6.5 m

Mongolian Northern Railways has been contracted by China Railway 20 Bureau Group (CR20G) to complete the first stage of the bankable feasibility study (FSFS) for the Erdenet to Ovoot railway.

Work under this contract includes desktop engineering for the entire arrangement to deliver additional project definition.

Output of this study will include a detailed bill of quantities, a comprehensive construction schedule and a preliminary capital cost estimate.

This new development follows inclusion of the Northern Rail Line in the Mongolian Government's National Rail Policy, the inclusion of Phase I on the concession list of approved projects, and the signing of an EPC Framework Agreement with CR20G.

Initial works under this FSFS project has started on the first 250km of maps and a preliminary payment of $250,000 has been already paid.

Aspire Mining has said that the further payments will be conditional on Northern Railways receiving a rail concession and funding.

The total cost to Northern Railways is expected to be $6.5m for both the first stage and the final bankable feasibility study.

A wholly owned subsidiary of China Railways Construction Corporation (CRCC), CR20G recently completed recent rail projects in Angola, Mongolia and Mozambique and the company currently employs more than 20,000 people.

Image: Mongolian Rail Policy for Northern Mongolia includes rail corridor extending west from Erdenet to Ovoot to Arts Suuri.

Photo: Company Aspire Mining.

Tags:

Mongolian Northern Railways

Tags are like keywords and makes it easy to find similar content. Click and you will see.