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Montevideo, July 19th 2018 - 13:34 UTC

Mexico's cancels contract to build a high-speed passenger train link

Sunday, November 9th 2014 - 10:01 UTC
Full article 4 comments
Mexico's communications and transport ministry said the new auction would start from mid-November and be open for about six months. Mexico's communications and transport ministry said the new auction would start from mid-November and be open for about six months.
Construction of the rail line, part of the government's plan to bolster the economy, was due to start in December, with services running from 2017 Construction of the rail line, part of the government's plan to bolster the economy, was due to start in December, with services running from 2017
Cancelling the bid won by a Chinese-Mexican consortium could have an impact since Peña Nieto is scheduled to travel to China next week Cancelling the bid won by a Chinese-Mexican consortium could have an impact since Peña Nieto is scheduled to travel to China next week

Mexico has abruptly cancelled a 3.75bn dollars contract awarded on Monday for a Chinese-led consortium to build a high-speed passenger rail link. President Enrique Peña Nieto said he wanted to avoid “any doubts about the legitimacy and transparency” of the bidding process.

Mexico has forged closer links with China, while Peña Nieto is going to Beijing on a state visit next week. The tender for the 130-mile rail link is being re-opened.

Mexico's communications and transport ministry said the new auction would start from mid-November and be open for about six months.

The contract was scrapped after lawmakers accused the government of favoring China Railway Construction Corp (CRCC). Rival bids by Germany's Siemens, Canada's Bombardier and France's Alsthom were considered.

According to reports, the three had asked for more time to prepare their submissions, but the requests were denied. Japan's Mitsubishi also expressed an interest.

But only CRCC and its Mexican partners had submitted a bid proposal by the 15 October deadline for the link between Mexico City and Queretaro.

It is possible that CRCC could be eligible for compensation because its contract has been withdrawn, government officials admitted.

Construction of the rail line, part of the government's plan to bolster the economy, was due to start in December, with services running from 2017.

Mexico would become the first Latin American nation to have a bullet train after Brazil and Argentina postponed their own high-speed rail projects.

“The president wants this project which is so important for Mexico to not be questioned, to have absolute clarity,” Transportation Minister Gerardo Ruiz Esparza said.

“We expect more participation from train makers in the new tender,” he said, adding that CRCC could still take part.

Top Comments

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  • Troy Tempest

    First Bullet Train in LATAM - good for Mexico !

    I guess Argentina wasn't up to it - Mexico surges ahead in their rivalry.

    Good to hear that Mexico has concerns about corruption and government ethics.

    Not like The Dark Country :-(

    Nov 09th, 2014 - 02:01 pm 0
  • Captain Poppy

    China is everywhere. They just won a contract for Boston city trains and are opening a plant in Springfield.

    Nov 09th, 2014 - 07:19 pm 0
  • Briton

    Not like The Dark Country

    Who still uses horse and cart, we hear...lol

    Nov 09th, 2014 - 07:20 pm 0
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