OREANDA-NEWS. On April 18, 2008 in Tripoli, Russian Railways and the Department for the Implementation of Railway Projects of the Great Socialist People's Libyan Arab Jamahiriya signed a contract valued at about EUR2,2 billion for the construction of a 554 km railway line between Surt and Benghazi in the presence of the Heads of State of Russia and Libya, Vladimir Putin and Muhammed Gaddafi, reported the press-centre of Russian Railways.

Vladimir Yakunin, President of Russian Railways, signed the contract on behalf of the Company.

The new line between Surt and Benghazi will run along the Mediterranean coast and connect several major Libyan cities. Construction is expected to take 4 years and will be carried out by Russian specialists, with the participation of Libyan companies.

In December 2006, Russian Railways signed a memorandum of understanding in Tripoli with the Management and Implementation of Railways Projects, which provided for the construction of railway branch lines.

In October 2007, Russian Railways submitted a feasibility study for a project to construct a railway between Surt and Benghazi.

According to Vladimir Yakunin, Russian Railways is ready to carry out further projects to lay railway lines in Libya in the light of its experience in constructing railways, including in desert conditions.

After signing the contract, the two sides discussed prospects for the further development of cooperation.