Mexico has abruptly cancelled a contract worth $3.75 billion (58.9 billion pesos) with a Chinese-led rail consortium, just two days after it was awarded. The project to construct the country’s first bullet train faced opposition from local lawmakers.
The China Railway Construction Corp. and CSR Corp. won the contract Monday, which set off steam amongst opposition politicians, who claimed the tender by the Chinese company, the sole bidder, lacked transparency and legitimacy. A new auction will be held and will include more bidders.
The Chinese-led group included Mexican firms that are linked to the brother of former President Carlos Salinas de Gortari.