Mexico scraps $3.75bn rail deal with China Railway Construction

An unnamed spokesman from China’s National Development and Reform Commission expressed surprise in a Xinhua dispatch Sunday concerning Mexico’s scrapping of a US$3.75 billion high-speed rail contract for a link between Mexico City and the city of Querétaro, Reuters reported. After the contract to build the link was awarded on Monday, Mexican opposition politicians accused the government of favoring the group led by China Railway Construction (601186.SHA), the sole bidder. Mexico’s Communications and Transport Ministry, which has defended the bidding process, said on Friday it expects to re-run the tender in late November under the same terms, and would keep it open for six months to enable all interested parties to participate.