Mexico reopens bidding for $3.7 billion rail contract

Mexico will publish preliminary terms on January 14 for a $3.75 billion high-speed train contract that was abruptly canceled in November, the Transportation Ministry said.

The government revoked the single-bid deal shortly before disclosures that the Mexican president’s wife was acquiring a luxury home from a Mexican company that was part of the winning consortium led by China Railway Construction Corp.

The terms of the tender, which will be open for 180 days, will be similar to the original one, the government said.

A supervisor will oversee the process, the statement added, to ensure “the full transparency and legality of the process from the start of the bidding process.”

Mexican President Enrique Peña Nieto is under growing pressure to end corruption since a group of trainee teachers was apparently killed after being abducted by police and handed over to a local drug gang on September 26, prompting nationwide protests.

Source: Washington Post