The Mexico government has abruptly withdrawn a $3.7 billion contract won by a Chinese-led group of companies to build a high-speed rail line, WSJ reported. The group also included Mexican companies that had close ties to the country’s ruling party.
This annoucement came in on Thursday, with the communications and transportation minister saying that action had been taken for transparency and clarity reasons.The Chinese-led group included China Railway Construction Corp Ltd and the CSR Corp. However, rival companies found fault with the hasty bidding process,
The project—which seeks to link Mexico City with the central city of Queretaro—was won this past week by China Railway Construction Corp Ltd. and China’s CSR Corp. along with a handful of Mexican partners. But rival companies had questioned the bidding process, saying that the allocated time frame of two months had been too hasty. As a result, the Chinese-led group emerged as sole bidder after others withdrew due to the lack of time to prepare bids.
The project will be open for tender by the end of November, with companies receiving six months for bid preparation.