Category Archives: Infrastructure

China rail builder seeks compensation over canceled Mexico bullet-train project

A consortium led by CRCC, which included a number of Mexican partners, won the contract in November. The contract was canceled days later amid concerns that several Mexican partners had ties to ruling-party officials and government officials.
A consortium led by CRCC, which included a number of Mexican partners, won the contract in November. The contract was canceled days later amid concerns that several Mexican partners had ties to ruling-party officials and government officials.

By Carlos Tejada / Wall Street Journal

A Chinese rail-construction company is seeking compensation from Mexican officials stemming from a halted $3.7 billion Mexican high-speed-rail project.

In a statement Tuesday to the Shanghai stock exchange, China Railway Construction Corp. said it was still in negotiations with “the Mexican side and will update if there is important progress.” It didn’t offer further details but said the postponement won’t have a major effect on its operations.

In November, CRCC warned it would resort to legal means to protect its interests after the contract was revoked.

The halt on construction of the roughly 130-mile bullet-train line, from Mexico City northwest to Querétaro city, has become a sore point in China. On Monday, China’s National Development and Reform Commission, the country’s top economic-planning body, called on Mexican officials to protect the rights of Chinese companies.

“We feel really sorry about the decision,” the NDRC said. “Chinese companies have invested much in bidding for the project.”

Officials at the Mexican embassy in Beijing didn’t immediately respond to requests for comment.

Mexico postponed the project last week as part of an effort to cut government spending by $8.3 billion amid an adverse economic environment and falling oil prices, as Mexico is a significant oil producer.

http://www.wsj.com/articles/china-rail-builder-seeks-compensation-over-canceled-mexico-bullet-train-project-1422949509

Dam project shines light on little-known U.S. agency

AP – When the U.S. government backed construction of a new hydroelectric plant in southwestern Mexico, residents rose up and defeated a three-year, $30 million project supported by the little-known Overseas Private Investment Corp.

The fight opened a window into the impacts that residents sometimes encounter in developments backed by OPIC, a U.S. government agency with a low profile but global mission.

http://www.usnews.com/news/politics/articles/2015/01/30/us-backed-mexico-dam-project-triggered-protest-rare-defeat

SCT postpones bidding rules for high-speed rail

High-speed rail trainEl Economista – The Secretariat of Communications and Transportation (SCT) postponed the publication of the new call for tender for the development of high speed train (TGV) Mexico-Queretaro (scheduled for today), to have more time to analyze comments that have been received from companies interested in the pre bases and “strengthen” the process.

http://eleconomista.com.mx/industrias/2015/01/28/sct-pospone-bases-licitacion-tav

Fast-train bidding will be success if several firms compete

Milenio – The tender for the high-speed Mexico-Queretaro train will be a success if wo to three companies enter the bidding said Secretary of Communications and Transport, Gerardo Ruiz Esparza. He said few companies have the technology to build high-speed trains.

http://www.milenio.com/negocios/Tren_rapido_Mexico_Queretaro-licitacion_SCT_tren_rapido-licitacion_tren_0_452954747.html

Measures implemented to accelerate home construction

Home constructionSentido Comun – President Enrique Peña Nieto announced several measures to accelerate the construction and sale of homes in the country, including tax incentives for development companies and subsidies for mortgage loans.

The government wants to trigger investments of nearly 370 billion pesos ($25 billion) this year to build at least half a million homes, that could benefit 2.5 million or more Mexicans.

http://www.sentidocomun.com.mx/articulo.phtml?id=16949

Chinese-led consortium favorite to clinch high-speed rail project

South China Morning Post – Mexico has begun accepting new bids on a multibillion-dollar high-speed rail project, two months after the construction deal with a Chinese-led consortium was abruptly cancelled amid allegations of favoritism.

But the China Railway Construction Corp (CRCC) looks poised to clinch the contract again, even after its original winning bid was revoked, say sources with knowledge of the bidding.

http://www.scmp.com/news/world/article/1680222/chinese-led-consortium-favourite-clinch-mexico-high-speed-rail-contract