New | Mexico pays Chinese rail firm over 100 million yuan after pulling out of bullet-train deal
Mexico has compensated a Chinese-led consortium with over 100 million yuan after its government cancelled a rail contract that the group had earlier won.
Chinese state-owned enterprises including China Railway Construction and CSR Corporation – which were part of the ill-fated consortium – would put in their bid as soon as a new tender for the project began, said Professor Wang Mengshu, a senior scientific advisor to the Chinese government on high-speed rail projects.
“We will certainly make a new bid. We are confident that the terms we offer will still compare favourably against other bidders,” said Wang, who is also deputy chief engineer of state-owned construction company China Railway Tunnel Group.
“Mexico has paid the consortium more than 100 million yuan in compensation for the costs that went into preparing for the bid,” he said, adding that they had yet to arrive at a final figure.
It remained to be seen whether the four Mexican firms who were part of the consortium would also take part in the new bid, he said.
Our high-speed railway, with its high technology, safety standards and low costs, will compare favourably with any other company in the world. That’s why we’re seeing more orders for our high-speed trains all over the world
The compensation comes after China Railway Construction on November 11 threatened legal action against the Mexican government over its decision to revoke the US$3.75 billion contract to build a 210km rail link between Mexico City and Queretaro state.