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Mexico denies favoring Chinese consortium in railway bidding

Infra News - Published on Mon, 12 Feb 2018

Image Source: wikimedia
Reuters reported that Mexico’s Foreign Ministry denied allegations that a Chinese consortium had been 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 (CRCC) (601186.SS).

The report details a 2014 meeting 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 launched.

In a statement issued, the Foreign Ministry stressed the meeting between Videgaray and Chinese officials was publicized and touched on a wide range of projects, including the Mexico-Queretaro railway, which was already public.

The ministry said that “At all times, it was made clear to Chinese officials that the projects would be realized through public tenders,” 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 (SIEGn.DE), Bombardier (BBDb.TO) and Mitsubishi (8058.T) - withdrew from the rail tender, leaving a consortium led by state-controlled CRCC as the de facto winner, Reuters reported.

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Posted By : Nanda Koijam on Mon, 12 Feb 2018
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