Eritrea to purchase US$61 million in machinery
July 29, 2012 (ASMARA) — The Eritrean Government signed two new contracts with China SFECO Group last week, according to the Shanghai-based company.
The agreements were signed in Bejing by Eritrea's Ambassador to China, Mr. Tseggei Tesfazion and vice president of SFECO Group, Mr. Zheng Yufeng.
Under the terms of the contract, SFECO will supply Eritrea with various machinery in the fields of agriculture, mining, transport and infrastructure; worth US$61.54 million. The company will also expand Hirgigo Power Plant.
In a similar purchase from SFECO, Eritrea had bought US$100 million worth of machinery that were delivered through the port city of Massawa last year.
The Chinese company has also been active in Eritrea's mining industry. In late 2011, Australian mining company Chalice sold its existing 60 percent share in the Zara Project to SFECO.
The transaction has SFEOC paying Chalice US$80 million in cash plus an additional sum of up to US$20 million for the area adjacent to the Koka deposit. The deal is expected to be finalized by August 26 of this year.
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