Mexico Defends Its Decision to Scrap Chinese Bullet Train Deal Agence France-Presse
go to original November 8, 2014

Mexico on Friday defended its abrupt decision to scrap a bullet train deal with a Chinese-led consortium and seek new bids after the opposition questioned the legality of the process.

President Enrique Pena Nieto canceled the 3.75 billion tender late Thursday, just three days after the sole bidder, a group headed by the China Railway Construction Corp., won the contract to build Latin America's first high-speed rail.

Pena Nieto will likely have to personally explain his decision to Chinese President Xi Jinping when he flies to China on Sunday for an Asia-Pacific summit and a state visit.

The Chinese-Mexican consortium faced no opposition when it was picked Monday to build the 210-kilometer (130-mile) line between Mexico City and the central manufacturing hub of Queretaro.

Companies had been given just 60 days to present an offer even though some had asked for more time.

Sixteen firms had initially shown interest - including industry giants Mitsubishi of Japan, Alstom of France, Bombardier of Canada and Siemens of Germany - but ultimately stayed out of the contest.

Transport Minister Gerardo Ruiz Esparza said the government would likely reopen the bidding in late November and give companies six months to submit an offer.

Read the rest at MENAFN

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