image image

Mexico

Mexico denies favouring Chinese consortium in bidding for high-speed rail project

Report claims Mexican and Chinese officials met in 2014 to discuss cooperation 10 days before launch of international tender

PUBLISHED : Thursday, 08 February, 2018, 3:16pm
UPDATED : Thursday, 08 February, 2018, 3:16pm

Mexico’s foreign ministry has denied allegations that a Chinese consortium was given an inside track in bidding for a lucrative contract to build a high-speed train system.

Mexican news outlet Aristegui Noticias reported on Tuesday that officials gave Chinese representatives 11 months’ notice about a contract to build a train project linking Mexico City with the wealthy, industrial city of Queretaro, citing a letter from China Railway Construction Corporation.

The report details a meeting in 2014 between Foreign Minister Luis Videgaray, who was then finance minister, and Chinese officials to discuss cooperation between the countries, which took place 10 days before the international tender was launched.

Stronger China relations underline Mexico’s look-East policy

In a statement issued on Wednesday, the foreign ministry said the meeting between Videgaray and Chinese officials was publicised and touched on a wide range of projects, including the Mexico-Queretaro railway, which was already public.

“At all times, it was made clear to Chinese officials that the projects would be realised through public tenders,” the ministry said, adding that efforts to promote ties between the countries via a working group were “announced in an open and transparent fashion”.

However, questions were raised after 16 firms – including Siemens, Bombardier and Mitsubishi – withdrew from the rail tender, leaving a consortium led by state-controlled by the Chinese corporation as the de facto winner.

How China and Hong Kong’s currencies were shaped by Spanish, Mexican silver dollars

Around the same time, it also emerged that Mexican President Enrique Pena Nieto’s wife was buying a home from a Mexican firm that was part of the Chinese-led consortium, touching off a political firestorm.

Videgaray’s participation in the working group was not mentioned in a Mexican government auditor’s report, which found that Videgaray and Pena Nieto had not benefited or tried to influence officials responsible for awarding contracts, according to Aristegui Noticias.

The group in which Videgaray took part has yielded other successful collaborations between the nations, such as a Mexico-China investment fund, the foreign ministry said.