Why CRC took a bath on the Mecca railway
The Economic Observer has an in-depth report on the project, which brought a loss of 4.15 billion RMB to China Railway Construction:
The CRC has said that the Mecca Light Rail is a commercial project and the company will voice the interest of its shareholders.
But the Mecca light railway has been an important concern of leaders from both Saudi Arabia and China. The Ministry of Railways, the Ministry of Commerce and the State-owned Asset Supervision and Administration Commission (SASAC) have all given tremendous support to the project. The high executives of CRC have stated many times within the company that the Mecca Light Railway is a “political project” and it has to be constructed with high standards of quality.
