Surprise as Mexico rail contract withdrawn

15 Nov CHINADAILY

China expressed surprise at Mexico's decision to revoke a $3.75 billion high-speed rail contract from a China-led consortium, saying the Chinese company involved has strictly followed the bidding procedure.

After the contract to build the link was awarded on Oct 3, Mexican opposition politicians accused their government of favoring the group led by China Railway Construction Corp, the sole bidder.

Mexico's Communications and Transport Ministry, which has defended the bidding process, said on Friday it expects to rerun the tender for the project under the same terms, and will keep it open for six months to enable all interested parties to take part.

The high-speed line will link Mexico City with the industrial hub of Queretaro.Mexico decided to withdraw the deal with a Chinese-Mexican joint consortium because of domestic factors, China's top economic planner said.

A spokesman for the National Development and Reform Commission said the withdrawal has nothing to do with the Chinese enterprise, and the Chinese government hopes the case can be settled properly as soon as possible.

The spokesman said it is surprising that Mexico has decided to scrap the deal, as the Chinese enterprise has strictly followed the public bidding procedures and requirements.