New | China Railway Construction leads group to build Mexico high-speed line
The infrastructure project represented a big step in President Xi Jinping’s goal to improve economic relations with Mexico and other South American countries
A consortium led by China Railway Construction Corp has won the bid to develop the US$3.74 billion high-speed passenger rail line connecting the capital of Mexico and Queretaro, the central city in one of the country’s smallest states.
In a filing with the Hong Kong stock exchange on Tuesday, China Railway Construction said it was joined in the bidding by four local companies in Mexico and another state-owned firm, CSR Corp – the world’s largest manufacturer of electric locomotives.
The Mexican Transport and Communications Ministry announced the award on Monday after the consortium emerged as the sole, uncontested bidder for the 210-kilometre Mexico City-Queretaro high-speed rail project.The consortium’s bid amounted to MXN58.950 billion, which is equivalent to 27.016 billion yuan. Of that total bid, China Railway Construction said it committed MXN38.955 billion or 17.853 billion yuan.
The government said the total project cost included the construction expenses and operations of the line for five years. Once the contract is signed, the final tally would include exchange rate, inflation and other factors.
It added that the Export-Import Bank of China will finance 85 per cent of the overall project cost.
The infrastructure project represented a big step in President Xi Jinping’s goal to improve economic relations with Mexico and other South American countries. The Chinese leader was the first head of state to visit with Mexican president Enrique Pena Nieto last year.