Mexico to compensate CRCC for rail project
The Chinese company at the helm of a consortium that won a $3.75 billion high-speed rail contract last year with Mexico that was later revoked will be compensated almost 20 million pesos ($1.31 million), a transport ministry official said.
The contract, for which the consortium led by China Railway Construction Corp Ltd (CRCC) was the only bidder, was abruptly revoked last fall shortly after it was awarded.
Earlier this year, the Mexican government relaunched the bid and then canceled it for a second time citing budget cuts. The CRCC provided a list of costs incurred during the tender and requested compensation.
Yuriria Mascott, a deputy minister at Mexico’s Communications and Transport Ministry, told reporters that the government had completed an analysis of CRCC’s costs.
“The legal team informed me that what is to be expected is almost 20 million (pesos)” in compensation, she said. (Photo 1)