Mexico cancels $3.75 billion contract for Chinese bullet train

Fortune

Mexico has revoked a $3.75 billion high-speed rail contract from a Chinese-led consortium after its uncontested bid prompted an outcry from lawmakers, only days after the contract to build the link was awarded.

The news threatens to sour a state visit to China next week by President Enrique Pena Nieto. Nieto is due to unveil a joint investment fund with China, which has so far invested a tiny fraction in Mexico of the billions of dollars it has spent in Latin America.

Opposition politicians accused the government of rigging the tender in favor of a group led by China Railway Construction Corp Ltd, the sole bidder. Mexico’s communications and transport ministry denied such claims but said late on Thursday it would now hold a fresh tender.

“The president is sensitive to the fact that there should be no doubts about a project this important and of such benefit for society,”…

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