China Railway Group Ltd and China Communications Construction Co Ltd (CCCC) signed a cooperation framework agreement for the management of Guangzhou's refuse and clay residue on March 22.

According to the agreement, about 20 million cubic meters of refuse and clay residue produced from projects of the China Railway Group will be transported by CCCC to be used for the construction of temporary dwellings in Hengli town of the Nansha district. The agreement is part of a larger comprehensive development project with a total investment of 8.2 billion yuan ($1.2 billion).

This is the first time that large-scale infrastructure projects in Guangzhou have involved state-owned enterprises controlled by the central government.