Contract blow for China-led bidders
Print Edition
MEXICO’S government expects to re-run later this month a US$3.75 billion high-speed rail contract it revoked after an uncontested bid by a Chinese-led consortium prompted an outcry from lawmakers, Transportation Minister Gerardo Ruiz Esparza said yesterday.
The new tender will remain open for six months to give other potential bidders time to participate, Ruiz Esparza said, adding that China Railway Construction Corp Ltd could also take part.
“Hopefully now there will be a bigger participation as there has been in other cases,” Ruiz Esparza said.
Mexico withdrew the deal with the Chinese-led consortium to build the country’s first bullet train after concerns were raised about the bidding process.
The government had awarded the contract to the Chinese company and four Mexican partners after the group had been the sole bidder.
But President Enrique Pena Nieto scrapped the deal on Thursday to avoid “any doubts about the legitimacy and transparency” of the bidding process, Ruiz Esparza said.
The transport ministry said in a statement that the president made the decision “due to the doubts and concerns that have emerged in public opinion.” More time will be allotted to encourage more train-makers to make proposals, the ministry said.
The Chinese-Mexican consortium faced no opposition on Monday when it was picked to build the 210-kilometer high-speed rail between the capital Mexico City and the central manufacturing hub of Queretaro.
Pena Nieto revoked the deal three days before flying to China for the Asia-Pacific Economic Cooperation summit and a two-day state visit to forge closer ties.
The rail project is part of Pena Nieto’s plan to bring back passenger trains to Latin America’s second-biggest economy.
The transport ministry said at the time that 16 companies decided against entering the contest, including industry giants Mitsubishi of Japan, Alstom of France, Bombardier of Canada and Siemens of Germany.
It did not explain why these companies shied away from making bids.
When announcing the winner on Monday, Ruiz Esparza said it was not unusual for just one group to bid for a high-speed train project, noting that on average, only two companies bid for such projects worldwide.
Prior to scrapping the deal, the government had expected construction to start in December and operations to begin in 2017.
The project aims to carry 23,000 passengers per day at speeds of up to 300 kilometers per hour, reducing the commute between Mexico City and Queretaro from over two hours to 58 minutes.
Mexico would become the first Latin American nation to have a bullet train after Brazil and Argentina postponed their own projects.
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