The government of Mexico has paid a consortium led by China Railway Construction Corporation (CRCC) more than USD 16m in compensation after it cancelled a high-speed rail contract.
Along with four Mexican contractors, CRCC won the contract to build the Mexico City- Querétaro line (220 km) and under the contract, the Chinese company should deliver the rolling stock. In total, the contract was put at USD 3.7b. But the deal was cancelled by Mexican president Enrique Peña Nieto after complaints were made by members of the Mexican parliament over the way the deal had been done, and the fact that the Chinese-led consortium was the only bidder. The cancellation came despite the government’s acknowledgement that the contract was binding.
Source: globalconreview.com
Photo: www.mensjournal.com
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