RIYADH, Feb 11: Saudi Arabia has awarded a $1.8 billion monorail project to carry pilgrims around the holy city of Makkah to the state-owned China Railway Co Ltd, formerly known as China Railway Engineering Group Co.

The award was announced at the state dinner on Tuesday evening hosted by Saudi King Abdullah for President Hu Jintao, who arrived here on Tuesday on a three-day visit.

The rail project will link Makkah with Mina, Arafat and Muzdalifah, which are visited by pilgrims during Haj.

The agreement was signed by Prince Miteb, the Saudi Minister of Municipal and Rural Affairs, and China Railway Company in the presence of King Abdullah and President Hu.