Firm files for compensation over suspended Mexico rail project

2015-02-10 15:47:05
Summary:MEXICO CITY - The China Railway Construction Corporation (CRCC) has filed for compensation following the suspension of a high-speed rail project it won in a bidding in Mexico, Mexican media reported on Monday


 

 

Chinese firm files for compensation over suspended Mexico rail project

A CRH train that runs on the Beijing-Shanghai High-Speed Railway leaves Tianjin South Railway Station in North China's Tianjin, June 30, 2012. [Photo/Xinhua]

 

MEXICO CITY - The China Railway Construction Corporation (CRCC) has filed for compensation following the suspension of a high-speed rail project it won in a bidding in Mexico, Mexican media reported on Monday

The firm submitted the relevant paperwork "at the end of January," confirmed Pablo Suarez Coello, director-general of rail transport at the Communications and Transportation Ministry, according to Mexico's state news agency Notimex

Suarez made the remarks when interviewed by reporters at the inauguration of Expo-Rail 2015, being held in the Caribbean resort of Cancun by the Mexican Association of Railroads

Mexican officials have yet to negotiate such compensation with the Chinese firm, said Suarez

The "indefinite suspension" of the rail project was announced on Jan 31, as part of a package of spending cuts due to a reduced national budget

The announcement marked another dramatic twist of the event since bidding process started for the Mexican high-speed rail project, which is expected to cost $3.75 billion

CRCC led a consortium of some five firms that entered the only bid to win the project back in November, but the Mexican government later abruptly annulled the result citing domestic reasons


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