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January 16, 2015

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Home » Business » Transport

Mexico reopens bidding for rail project

MEXICO’S government has reopened the bidding process for a bullet train project, two months after a Chinese-led consortium’s winning tender was controversially canceled.

The transport ministry published the preliminary terms to enter the contest to build Mexico’s first high-speed railway, linking Mexico City to the central manufacturing hub of Queretaro.

China Railway Construction Corp and Mexican partners had been awarded the US$3.75 billion contract in November, but Mexican President Enrique Pena Nieto abruptly canceled the deal three days later, citing concerns over transparency in the bidding process.

Days after Pena Nieto’s decision, a news report said that a Mexican firm that was part of the consortium had built a house for the president’s wife, sparking allegations of a conflict of interest.

The presidency has denied the government contractor, Grupo Higa, had been given any favors or that Pena Nieto’s decision was linked to the news report.

CRC said last week that it plans to tender for the project again, but Grupo Higa has indicated that it will stay out this time.

Companies will now have six months to make proposals, with the winner to be unveiled on July 31. Firms had complained about the 60-day bidding process last year.




 

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